Greenply Industr (GREENPLY)
CyclicalFairStock Score: 20/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹280.95 |
| Market Cap | ₹3,509.12 Cr |
| P/E Ratio | 35.47 |
| ROCE | 12.36% |
| ROE | 10.3% |
| Dividend Yield | 0.18% |
| Profit Growth | 32% |
| Debt/Equity | 0.58 |
| Sales Growth | 20.7% |
| Promoter Holding | 51.8% |
| 52-Week Range | ₹176.42 — ₹334.4 |
| Sector | Consumer Durables |
| Book Value | ₹72.23 |
Strengths
- Promoter holding of 51.80% indicates strong owner alignment.
- Sales growth of 9.59% shows the business is still expanding at the top line.
- ROCE of 12.36% and ROE of 10.30% are positive, with book value at ₹62.08.
- Latest quarter sales of ₹673 Cr reflect a meaningful operating scale; debt/equity of 0.64 is manageable.
Concerns
- Profit growth fell 31.15% while P/E stands at 37.14; PEG of 3.87 suggests expensive valuation.
- Latest quarter net margin is roughly 2% (₹14 Cr profit on ₹673 Cr sales), indicating weak earnings quality.
- Piotroski F-Score of 4/9 and FairStock Score of 11/100 point to deteriorating financial health.
- Dividend yield of just 0.23% offers negligible income while investors wait for a recovery.
AI Analysis
At ₹246.55, Greenply is a ₹2,758 Cr plywood/laminate player with promoter holding of 51.80%, which at least tells me owners are still in the game. But my mentor Ben Graham taught me to weigh facts, not hopes. The latest quarter sales of ₹673 Cr produced only ₹14 Cr net profit—a margin of roughly 2%. That is thin. For the full picture, profit growth has fallen 31.15% despite sales growth of 9.59%. So revenues grew but the bottom line did not. That raises questions about pricing power, input costs, or competition. I do not see a wide moat here. A P/E of 37.14 with a PEG ratio of 3.87 means I am paying a rich multiple for negative earnings momentum. Book value is ₹62.08, so P/B is 3.97—not a Graham bargain. ROE of 10.30% and ROCE of 12.36% are acceptable but not extraordinary; I would want much higher returns for a business that must invest in capacity and brands. Debt/equity of 0.64 is manageable, but F-score of 4/9 warns of deteriorating fundamentals. Dividend yield of 0.23% means shareholders are hardly being paid to wait. At best, this is a cyclical with some brand strength; at worst, a value trap. The 52-week range of ₹176.42 to ₹334.40 shows the market is indecisive. I prefer certainty and margin of safety. At 37 times earnings, with falling profits, Greenply offers neither. I will keep it on my watchlist, but I will not put my money to work here today.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer