Greenply Industries Limited

Basic Materials — Lumber & Wood Production · NSE

₹309.65+₹2.35 (+0.76%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

The 60-second version of Greenply Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Greenply Industries Limited, an interior infrastructure company, engages in the manufacture, sale, and trading of plywood and allied products in India and internationally.

IndustryLumber & Wood Production

SectorBasic Materials

Employees2,649

Annual revenue₹2,738 Cr

How does it make money?

Turns over ₹2,738 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 2,649 employees supports ₹1.03 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin8.7%

Net margin3.3%

Revenue / employee₹1.03 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

ULTRATECH CEMENT LIMITEDP/E 37.6x · ROE 11.1%

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

What is its competitive advantage?Little sign of one

Returns on capital of 12.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE12.5%

ROE10.0%

Peer median ROE22.3%

What is the outlook?

14 analysts covering the stock expect revenue to grow about 13.1% and earnings to grow about 27.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.1%

Est. earnings growth+27.6%

Analysts14

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +65% while net margin moved -41% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+65%

Margin effect-41%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROE of 10.0% is moderate
✗ ROE has fallen by 4.2 points over the period

Quality vs. Valuation

Company Quality

51/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

44/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

39.1x

3Y Median

41.1x

40 monthly readings · mean 41.9x · range 21.9x–68.4x

Sector Median

28.7x

median of 4 sector peers

🟡Currently trading close to its 3y median of 41.1x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 36% above the peer median of 28.7x.

vs. its own history

Fair

41.1x median over 40 months · -5%

vs. sector peers

Expensive

28.7x median of 4 peers · +36%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

39.1x

P/B

4.29x

EV/EBITDA

18.2x

PEG

1.22

Dividend Yield

0.16%

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 25% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 14.2% to 10.0% — each rupee of shareholder capital earns less than it did.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 25% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 36% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 14.2% to 10.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 14% a year✓ 18.2% CAGR
Latest reported year was 20.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 8.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✓ ₹90 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 10%✓ 12.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹3,868 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

39.1x

Fair

Fairly valued against the generic band

P/B Ratio

4.29x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.91

Profitable

Profitable on a per-share basis

ROE

10.0%

Moderate

Moderate capital efficiency

ROCE

12.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.58x

Low

Conservative leverage

Revenue Growth (YoY)

20.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

32.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.16%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹90 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹309.65

P/E (Forward)

18.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

8.4%

Average

Average margins

Net Margin

3.4%

Average

Average bottom-line conversion

Current Ratio

1.29

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.69

Defensive

Steadier than the market

52W Range Position

84%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

301.6 / 293.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

64.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,659 Cr	₹2,175 Cr	₹2,482 Cr	₹2,738 Cr	+18.2%
EBITDA	₹157 Cr	₹201 Cr	₹216 Cr	₹239 Cr	+15.1%
EBITDA Margin	9.5%	9.2%	8.7%	8.7%	—
PAT (Net Profit)	₹91 Cr	₹70 Cr	₹92 Cr	₹90 Cr	-0.7%
EPS	₹7.37	₹5.61	₹7.34	₹7.18	-0.9%
ROE	14.2%	9.9%	11.3%	10.0%	—
ROCE	10.9%	13.8%	12.9%	12.5%	—
Total Debt	₹701 Cr	₹557 Cr	₹524 Cr	₹524 Cr	-9.3%
Free Cash Flow	-₹353 Cr	-₹32 Cr	₹141 Cr	₹90 Cr	—

🟢 Revenue has grown at 18.2% a year over 3 years.

🟢 EBITDA has grown at 15.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 8.7% over 3 years.

🟡 PAT (Net Profit) has been broadly flat over 3 years (-0.7% a year).

🟡 EPS has been broadly flat over 3 years (-0.9% a year).

🔴 ROE has fallen from 14.2% to 10.0% over 3 years (-4.2 pts).

🟢 ROCE has risen from 10.9% to 12.5% over 3 years (+1.6 pts).

🟢 Total Debt has shrunk at 9.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹353 Cr to ₹90 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,962 Cr

Total Liabilities

₹1,066 Cr

Total Debt

₹524 Cr

Cash & Equivalents

₹27 Cr

Operating Cash Flow

₹247 Cr

Capex

-₹157 Cr

Shareholding (proxy)

Institutional Holding

39.5%

Insider Holding

48.2%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

04 Aug 2026

Analyst Consensus

Recommendations

12 Buy · 2 Hold · 0 Sell

Target Price (Mean)

₹363.79

+17.5% vs CMP

Target Range

₹300 – ₹440

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

3 mixed3 general

Greenply seeks exchange approval for promoter group reclassification

scanx.trade, 14 Oct

Greenply Industries Share Price Target 2027: Base and Bull Case

Univest, 09 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Greenply Industries (NSEI:GREENPLY) Stock Forecast & Analyst Predictions

Simply Wall Street, 08 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

GREENPLY Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Top stocks to buy today: Stock recommendations for October 15, 2026 - check list

The Times of India, 15 Oct

Greenply Industries: Building Brand Leadership in India's Plywood Market

MarkHub24, 15 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🟢Financial HealthStrong14.4/20

🟡GrowthModest9.3/20

🔴ProfitabilityWeak6/15

🟡ValuationFair8.1/15

🟡RiskModerate6.2/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓Revenue growth stays above 14% a year18.2% CAGR
✓EBITDA margin holds above 7%8.7%
✗Debt / EBITDA stays below 2x2.2x
✓Free cash flow remains positive₹90 Cr
✓ROCE stays above 10%12.5%