Greenlam Industr (GREENLAM)
CyclicalScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹251.3 |
| Market Cap | ₹6,411.86 Cr |
| P/E Ratio | 69.04 |
| ROCE | 7.41% |
| ROE | 12.05% |
| Dividend Yield | 0.16% |
| Profit Growth | -8.9% |
| Debt/Equity | 0.98 |
| Sales Growth | 4.19% |
| Promoter Holding | 50.98% |
| 52-Week Range | ₹197.59 — ₹280.6 |
| Sector | Consumer Durables |
| Book Value | ₹46.22 |
Strengths
- Revenue growth of 17.33% shows ongoing demand for the business.
- Latest quarter sales of ₹706 Cr indicates meaningful operating scale.
- Promoter holding of 50.98% aligns promoters with minority shareholders.
- ROE of 12.05% is positive despite the weak recent profit showing.
- Company still pays a dividend, albeit a small 0.17% yield.
Concerns
- P/E of 335.66 and PEG of 19.37 are extreme, with earnings nearly absent.
- Profit growth of -106.94% and latest quarter net loss of ₹1 Cr show severe earnings deterioration.
- ROCE of 7.41% is low relative to debt/equity of 1.03, indicating high leverage and weak capital efficiency.
- Piotroski F-Score of 4/9 and FairStock Score of 7/100 signal poor fundamental health.
AI Analysis
At ₹230.55, Greenlam Industr carries a market cap of ₹6,098 crore. Laminates and plywood are businesses I can understand, but understanding is not enough; I need attractive economics. The numbers fail that test. Trailing P/E of 335.66 means the market is paying for earnings that have almost vanished—profit growth is -106.94%, and the latest quarter reported a net loss of ₹1 crore on sales of ₹706 crore. A 17.33% sales growth number is pleasing on the surface, but growth without profits is not value creation. With a PEG of 19.37, the price already discounts a recovery that the financials do not support. ROE is 12.05%, but that is boosted by debt; ROCE is only 7.41%, and debt/equity is 1.03. That is not a fortress balance sheet. Piotroski F-Score of 4/9 and FairStock Score of 7/100 reinforce my caution. Book value is ₹42.86; at ₹230.55, I am paying 5.38 times book for mediocre returns and a 0.17% dividend yield. Promoter holding of 50.98% is a positive: owners have meaningful skin in the game. But even good alignment cannot justify this valuation. This looks like a cyclical business hitting a rough patch while carrying leverage. Graham taught me to buy with a margin of safety. Here the margin is absent, and the price offers no protection. I will not chase this; I will wait for evidence of durable margins, positive profits, and a reasonable price.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer