Atharva Belhekar - Greenply Industries

Academic Research Project- Not a Recommendation
Equity Research Report

Greenply Industries Ltd
Dominant Strategic Player
About the Company Recommendation : XXX
CMP : INR 199.2
Greenply Industries Ltd (hereafter referred to as ‘the company’ or ‘Greenply’) is a
leading brand of plywood and allied products headquartered in Kolkata, West Target Price : XXX
Bengal. The company saw its initial development in 1984 to commissioning it’s
first plywood manufacturing plant in Nagaland in 1988.
Stock Data (as on Dec 05, 2023)
The company has four manufacturing facilities of plywood in India and one in NIFTY : 20,820.9
Gabon, West Africa of Veneer peeling. Greenply is adding another manufacturing
52 Weeks H/L (INR) : 211.9/134.5
unit in Hapur (Uttar Pradesh). A major Milestone was achieved by the company
with successful production initiation at MDF unit in Vadodara, Gujrat, marking an Market Cap (INR Crs) : 2,490
entry into the MDF segment. Recently Greenply entered in a JV with a company O/S (Crs) : 12.33
in the Netherlands for manufacturing and selling of functional furniture
hardware. The company is focused on asset light growth model to cater growing Dividend Yield (%) : 0.25%
plywood demand.
NSE Code : GREENPLY
Greenply has a 28% share of the organized market, only second to Century
Plyboards. The company is one of the largest players in the domestic interior Relative Stock Performance- 1Y
infrastructure sector. Greenply has a strong distribution network of over 2,300
Nifty Greenply
dealers spread across over 1,100 cities, towns and villages.
Greenply generates 51% revenue from Own Manufacturing, 39% from Trading
and 9% from manufacturing partners. The company is developing a healthy mix
of manufacturing and trading portfolios to yield better ROE.
Brief View
The company has posted growth of 28% in top-line during Q2FY24 22 23 23 23 23 23
and expects to grow at a CAGR of 22%. The consolidated EBITDA D ec- Fe b- Apr- Jun- Aug- Oct-
Margin stands at 8.4% in Q2FY24, which has improved from the
previous quarter, however reduced by 200 bps on YoY basis. The Absolute Returns
plywood EBITDA margins for Q2 FY24 stood at 7.9%, which are down 1 Year : 24.16%
by 260 bps on a YoY basis.
Prices for Raw materials such as Timber, Resins have seen significant
2 Years : 64.75%
increase in the previous quarters, due to which price hikes have been 5 Years : 47.9%
taken by the company. The full impact of the same may be visible in
H2 of FY24. Considering above, company expects margin
improvements in H2 FY24. Shareholding Pattern (as of Sep 2023)
The stock currently trades at a P/E of 47.0x. EPS of the company has Promotors : 52.1%
decreased to 7.4 in FY23 from 7.7 in FY22 (consensus basis) the price
of stock is expected to reach xxx. FII : 2.1%
DII : 33.1%
Key Highlights and Outlook
Public : 12.7%
• Top-line growth of 18% on YoY basis was achieved for FY23 and growth of
28% on QoQ basis in Q2FY24. Company crossed Rs. 600cr in consolidated
Financial Summary
revenue, which is highest ever for Greenply. The consolidated sales for FY23 is
expected to approximately grow at a CAGR of 22% over FY22 and CAGR of In INR Crs FY23 FY24E FY25E
13% over FY2020.
• The recent expansion of plywood capacity at Sandila is now operating at 60% Net Revenue 1,845.6 2,319.4 2,627.0
capacity in Q4FY23. The plywood business revenue growth was 9.7% on a YoY, YoY Growth % 18.0% 25.7% 13.3%
majorly driven by 11% volume growth. However, the EBITDA margins has
EBITDA 148.4 247.1 302.4
dropped by 260 bps on a YoY basis to 7.9%, which includes a one-time
expense relating to entry tax of Rs. 3.3cr, which is non-recurring in nature. EBITDA Margin (%) 8.0% 10.6% 11.5%
The reason for subdued performance of the plywood business is due to PAT 91.4 110.7 149.2
escalation in raw material prices, especially Timber costs. The company YoY Growth % -3.00% 21.1% 34.8%
expects the prices of Timber to stabilize in H2 of FY24. ROE 16.0% 15.9% 18.3%
• The MDF business achieved cash positive performance in its first full quarter
EPS (In INR) 7.4 9.0 12.1
of operation, with EBITDA margin at 15.5% in Q2FY24. The company expects
to achieve 1 Lakh cbm sales volume for FY24. In a full year of operations of EV/EBITDA 15.99x 9.40x 7.20x
the MDF unit, the company expects to target 700 cr of sales or around 22%
Prepared by: Atharva Belhekar
Margin.
Guided by: Parth Verma (The Valuation School)

• Prices for key raw materials such as timber and chemicals Exhibit 1: Q2FY24 Comparison
(including melamine and Phenol) required to manufacture wood 608
panel and related products have significantly increased over the 495 476
past couple of years. The chemical prices softened during the
previous quarters; however, timber prices continues to remain
elevated.
• The company did a major Capex of Rs 600cr in FY23 which was
fully utilized for the MDF plant. For the FY24, the company has Q2FY23 Q1FY24 Q2FY24
planned for maintenance capex of around RS 25cr-30cr for the Revenue
plywood business. In the upcoming Quarters the company will be
making investments in the Furniture hardware JV. 9.88%
• On a consolidated basis, the company’s Net Debt levels are at Rs. 8.44%
6.26%
713 cr, which is well within the management guided peak net
debt level of Rs. 750 cr.
• The Gabon business in West Africa continues to be in under
pressure due to severe political unrest and faces supply-side
challenges. The management does not see an immediate Q2FY23 Q1FY24 Q2FY24
turnaround. EBITDA (%)
• Greenply being strategically focused on the premium segment
has launched value-added product categories like CARB and Boil 4.77%
Pro. In Q1FY24, the company sold 31000 cbm with blended
realization of 28000 per cbm. The company expects to increase 2.30%
this realization by increasing their value-added portfolio.
0.17%
• The working capital days for Q2FY24 stood at 48 days with a
decrease of 15 days from Q1FY24 of 63 days. This was led by
lower payable days. Growth in Revenue and growth in receivables Q2FY23 Q1FY24 Q2FY24
is positively correlated. The receivable days has been drastically PAT (%)
decreased and are even below the industry average. Source: Quarterly presentation, Company Analysis
Global Economy Exhibit 2: Global GDP Projections (%)

More than three years have passed since the global economy faced
its biggest challenge in the last 75 years. Recovery is happening, but 0.50% 2.50% 4.50% 6.50% 8.50%
there are differences in how well different parts of the world are
doing. Tensions between Russia and Ukraine have caused problems
World
for trade and supply chains, especially for Western countries. High
inflation and ongoing efforts by central banks to control it are
holding back economic growth. The recent conflict between Israel Advanced Economies
and Gaza could make it harder to manage energy costs and keep
supply chains running smoothly.
Emerging Economies
Here's a breakdown of the numbers:
Global Inflation: It has decreased significantly from 11.6% in the
second quarter of 2022 to 5.3%. This means that prices are still Sub- Saharan Africa
going up, but at a slower pace.
Advanced Economies: They are expected to experience a slowdown
in economic growth from 2.6% in 2022 to 1.5% in 2023 and 1.4% in US
2024. The US is doing better than expected, but growth in the euro
area is weaker than anticipated. Japan
Emerging and Developing Economies: Growth is expected to
decline from 4.1% in 2023 to 4% in 2024, with a downward revision
of 0.1 percentage point. UK
Global Economic Growth: It is expected to slow down from 3.5% in
2022 to 3.0% in 2023 and 2.9% in 2024. This is below the historical
average from 2000 to 2019, which was 3.8%. China
Global Inflation Forecast: It is predicted to decline steadily from
8.7% in 2022 to 6.9% in 2023 and 5.8% in 2024. This decline is due to
tighter monetary policies and lower international commodity prices. India
These numbers help paint a clearer picture of the challenges and

trends in the global economy. Despite improvements, there are still 2022A 2023P 2024P
concerns, especially regarding inflation and varying growth rates
across different regions.
Source: IMF WEO Source: IMF WEO, Company Analysis


Exhibit 3: India vs Global GDP Growth (%) Indian Economy
6.80% 6.90% 7.20% 6.30% 6.30%
3.90%
India's economy did well in FY23, even with challenges from the
pandemic and global conflicts. India became the world's fifth-largest
economy, growing at 7.2%, much higher than the global average of
3.5%. The IMF sees India as a positive force in the world economy.
-5.80%
For the next fiscal year, FY24, India is expected to grow around 6-
2018 2019 2020 2021 2022 2023P 2024P
6.6%. The government spending more on infrastructure is likely to
India Global boost investments, and growth may also come from expanding
credit, using resources better, and improving trade.
Exhibit 4: India GDP Quarterly Growth- Actual vs Projected
Even though India got a record $84.8 billion in foreign investment
16.0% (FDI) in FY21-22, it saw a 16% decrease to $71 billion in FY22-23. The
income per person almost doubled in nine years to Rs 172,000, going
14.0% up by 15.8% from the previous year. People spending more has also
12.0%
helped industries produce more and use resources better.
10.0% Inflation started going down and went below 5% in April 2023. But
15.20%
challenges like a weaker rupee, high-interest rates, a global economic

8.0%
13.5%
downturn, and the impact of El Nino on crops might affect India's

6.0% growth.
7.70%
7.8%
7.6%
6.80%
6.20%
6.3%
6.00%
6.1%
4.0%
In a nutshell, India's economy is doing well despite challenges, with
5.4%
4.00%
4.60%
4.60%
4.1%
4.4%
2.0% positive signs like growth, recognition from the IMF, and more
Q3F Y22 Q4F Y22 Q1F Y23 Q2F Y23 Q3F Y23 Q4F Y23 Q1F Y24 Q2F Y24 income for people. Looking ahead, the government's investments
and positive trends are expected to continue, but there are still some
Actual Projected challenges.
Source: IMF World Bank, RBI, Investing.com Source: IMF WEO, Company Analysis
Exhibit 5: Real estate Market Size (USD Billion)

Global Real Estate Sector
6000 5607
7% 5324
The global real estate market grew from $3694.47 billion in 2022 to CAGR 5055
4799
$3976.18 billion in 2023 at a compound annual growth rate (CAGR) of 5000 4557
4327
7.6%. The real estate market is expected to grow to $4279.84 billion 3901
4108
in 2027 at a CAGR of 7.0%. Commercial property is projected to 4000 3704
3265
register a CAGR of 5.1% from 2022 to 2030. The expanding
2891
urbanization, low interest rates, evolving lifestyle trends, e- 3000
commerce growth, sustainability, remote work, demographic shifts,
and government policies are some of the major factors propelling the 2000
market. The market is booming at an exceptional pace because of the
growth of the tourism sector. Moreover, the growing number of 1000
hotels and resorts is expected to drive the demand for bathroom
furniture. The COVID-19 pandemic has changed consumer 0
perception towards owning a property, as result, there has been a 2020A 2021A 2022A 2023P 2024P 2025P 2026P 2027P 2028P 2029P 2030P
rise in demand for luxury homes, villas, and second homes. Source: Multiple reports
Exhibit 6: Global Real Estate Universe in comparison (USD Trillion)

Global commercial real estate investment volume fell by 55% year-
12.2
over-year in Q1 2023 to US$147 billion. Volume fell by 56% in the
America, 64% in Europe and 20% in Asia-Pacific. European retail
129.8
investment fell by 46% year-over-year in Q1 to US$7 billion. Asia-
Pacific (APAC) investment volume fell by 20% year-over-year in Q1 to
US$24 billion. Strong investment activity in Japan and mainland China
led to APAC having the smallest decline in Q1 investment volume of
the three global regions. 287.6
The Asia Pacific real estate market is experiencing a dynamic growth 98.9
trajectory driven by rapid urbanization in emerging economies across
India, China, and Southeast Asian countries, creating an
unprecedented demand for residential and commercial properties. 41.3
50.8
Res identi al R eal Es tate Commercial Real Es tate Agri cu ltural Land
Equi ties Debt Securiti es Gold
Source: IMARC, Statista, CBRE, Source: savillis.com

Exhibit 7: Indian Real Estate Market Size (USD Billion) Indian Real Estate Sector
1200
Real estate is the second-largest employer in India after agriculture.
Being a crucial sector of the Indian economy, it is estimated to
.5%
1000
1000 19 account for approximately 13% of India's GDP by FY25 and reach USD
GR
CA 852 1 trillion by FY30, up from $200 billion in 2021. India’s real estate
800 market is estimated to increase at 19.5% CAGR during 2017-2028. The
650 market is forecasted to reach $650 billion by 2025.
600
In FY23, India’s residential property market witnessed with the value
of home sales reaching an all-time high of Rs. 3.4 Lakh crores ($42
400 billion), marking a robust 48% YoY increase. The volume of growth
also showed a strong growth trajectory, with a 36% rise to 379,605
172 180
200 120 units sold. Home sales across top 8 cities in India surged 68% YoY,
signifying a healthy recovery in the sector. Real estate demand for
0 data centres is expected to increase by 15-18 million sq. ft. by 2025.
2017A 2019A 2020A 2025P 2028P 2030P
Source: IBEF, Knight Frank Report Thus far India has been categorised as a low-middle income country.
However, in the last few years there has been a shift in the size of
Exhibit 8: Real Estate contribution to Total Economic Output (%)
housing demand. There has been a growing demand for luxury
housing across top 8 cities across India. Luxury housing comprised
16% of the total sales, estimated to increase to 27%.
2047E
15.5%
Trends such as co-living spaces, senior living communities, and
mixed-use developments are gaining popularity, reflecting changing
2030E
lifestyle preferences and demographics.
7.3% The demand drivers are rapid urbanisation, growing population,

2022 increasing disposable income, various government incentives. There
7.3%
is also increasing need for office spaces, data centres, data storage
facilities. This rebound in real estate sector will act as a key growth
driver for the Furniture, Wood panel, Plywood Industry.
Source: IBEF, Knight Frank Report
Sector- FII Inflow Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Total
Construction 1591 437 2224 607 -344 2988 2167 750 -2097 -2750 -898 4675
Building Materials -261 106 1423 452 1353 1851 467 386 -1293 397 797 5678
Realty -325 -71 104 -216 838 750 445 588 763 -496 1112 3492
Source: NSDL
If we analyse the FII capital inflow data for the CY23, we can see a
Exhibit 9: FII Inflow in Realty Sector steady capital inflow of INR 3492 crores in the Realty sector. The
1112 International Investors are eyeing opportunities in both residential
and commercial projects, contributing to the sectors growth.
838
750 763 The Real estate inventory stood at a record high in CY23, which
seems a good opportunity for its proxy industries. Realty inventory
588 has increased by 28 percent in the first half of the current financial
445 year, propelling the combined value of unsold homes of leading listed
companies to a record high of more than Rs 1 lakh crore. This amount
is equivalent to 33 months of sales. So, we can see this as an
opportunity and not a concern.
104
So, from above we can analyse that, in 2023, the real estate sector
has experienced significant growth, resulting in a high inventory of
-71 houses available for possession. This can act as tailwind and present
-216
an opportunity for industries involved in building materials, such as
-325
plywood. Companies like Greenply and Century Ply, which are leaders
in the market, are likely to see increased demand as people begin
-496 moving into their new homes. This growth is attributed to the surge
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov in housing construction, indicating a positive trend for companies in
the plywood segment.
Source: Analysis, NSDL Source: IBEF, Knight Frank Report

Global Wood Panel Industry Exhibit 10: Wood panel Industry Size (USD Billion)
234.3
Wood based panels are made from wood chips, strips, veneers, 208.6
221.1
196.8
strands or fibres. They comprise particleboard, medium-density 175.1
185.6
165.2
fibreboard (MDF), high-density fibreboard (HDF), plywood, softboard,
hardboard, laminates. Increase in demand for residential and
commercial construction activities across different geographies are
expected to boost the demand for wood panels.
The global wood-based panels market size reached US$ 165.2 Billion
in 2022. Global Wood-panel industry is expected to reach US$ 236.8
Billion by 2028, exhibiting a growth rate (CAGR) of 6% during 2023- 2022A 2023P 2024P 2025P 2026P 2027P 2028P
2028.
Exhibit 11: Wood panel Global Share
Wood-based panels have diverse applications across various end-user 13.30%
industries. In construction, they are used for structural elements, 26.70%
flooring, roofing, and interior panelling. In furniture manufacturing,
they are the primary material for cabinets, shelves, and tabletops.
The automotive industry utilizes them in vehicle interiors. They are
also utilized in packaging, shipbuilding, retail fixtures, and other
1.40%
sectors requiring cost-effective, versatile, and sustainable panelling 1.50% 32.50%
solutions. 3.80%
1.90%
Growing investments in domestic and commercial development 6.80%
activities across major areas are likely to fuel demand for wood-based 12%
panels. Other growth drivers are Inexpensive commodity costs,
India China US Indonesia Australia
growing consumer spending. Increase in demand for commercial real
Philippines Germany Canada Others
estate.
Source: IMARC, Grandviewresearch.com Source: IMARC, Grandviewresearch.com
Exhibit 12: Indian Wood Panel Market Size (INR Billion) Indian Wood Panel Industry
753
India’s wood panel industry includes Plywood, MDF, particle board
664
and Laminates. This segment is estimated to be worth INR 40,000 cr
585 in FY23 and is anticipated to grow at a CAGR of 13.5% from 2023-
515 2028.
454
400
Based on products, plywood accounts for the largest share in India of
54% to Rs. 250bn followed by laminates of 20% to Rs. 90 bn, MDF
11% to Rs. 50bn, Veneer 4% to Rs. 20 bn. India’s wood panel industry
is high fragmented and unorganised given the low entry to barriers,
30% is organised and 70% is unorganised. Recently, the industry is
moving towards organised sector with growth coming from segments
like MDF, Laminates and due to strict GST regulations.
2023 2024 2025 2026 2027 2028
Replacement demand continues to be a dominant growth driver for
Source: IBEF, Mordor Intelligence report the industry. The key growth factors are Growing population,
development of furniture cluster, growth of real estate sector, Rapid
urbanisation, Growth in rural India, Shifting consumer preference
towards comfortable and aesthetic furniture, growth of premium
Exhibit 13: Sub categories of Wood Panel
furniture, Make in India initiatives.
The industry has been adapting to market trends, including the

12% increased demand for sustainable and eco-friendly products. Some
15% companies focus on offering environmentally friendly wood panels
Plywood with certifications such as Forest Stewardship Council (FSC). Greenply
12% 62%
is the first company to obtain FSC Certificate.
MDF
Laminates If we look at the FII investment data for the CY23, we can see a high
Particle Board capital inflow of INR 5678 crores in the building material segment.
With the continued growth of the real estate and interior design
sectors in India, the wood panel industry is likely to see promising
demand and growth.
Source: IBEF, Mordor Intelligence report Source: IBEF, Company Analysis


Global Plywood Industry Exhibit 14: Global Plywood Market Size ($ Billion)
138.7
130.3
The global plywood market is a crucial part of the construction and 114.8
122.3
107.8
interior design industries worldwide, currently showing steady 89.3 95.1
101.2
78.7 83.8
growth and technological advancements. Plywood, being versatile 73.9
and widely used, plays a vital role in various applications.
The global plywood market has seen consistent growth and is

expected to grow at a CAGR of 6.5% from 2022 to 2032. The global
plywood market size was valued at USD 73.9 billion in 2022 and is 2A 3F 4F 5F 6F 7F 8F 9F 0F 1F 2F
2 02 2 02 2 02 2 02 2 02 2 02 2 02 2 02 2 03 2 03 2 03
expected to reach USD 138.7 billion in 2032. North America is
expected to grow the fastest during the forecasted period. Source: Spherical Insights, Market Research Future
The softwood segment is dominating the market with the largest Exhibit 15: Plywood Regional Share
revenue share of 38.6%. Soft plywood is constructed from softwoods
such as pine, redwood, cedar, and others. They are appropriate for
outside framing, roof sheathing, and subflooring. Other than
Softwood, the MR grade segment is witnessing significant CAGR
growth. Mr Grade is an internal grade plywood.
Asia Pacific is dominating the market with more than 47.2% market 47.2%
share. Rapid growth in the economy rates, expanding manufacturing 28.4%
sectors, inexpensive labour, and a global movement of goods and
manufacturing capacity from established countries to developing
nations in the region are driving the expansion of the Asia Pacific
plywood market.
Source: Spherical Insights, Market Research Future Source: Spherical Insights, Market Research Future
Exhibit 16: Indian Plywood Industry Size (INR Billion) Indian Plywood Industry
308
288 Plywood is a panel product manufactured by assembling thin layers
270 of wood veneers bonded together using strong adhesives. The
253
222
237 primary raw material required are timber and chemical resins. This
208 Industry is estimated at Rs. 208 bn in FY22 and is expected to reach
Rs. 306.5 bn by 2028, growing at a CAGR of 6.74%.
This industry mainly produces engineered wood products, with

plywood being a crucial part because it's versatile and used in many
ways. It is largely dominated by the unorganised sector which
constitutes of 75% share. However, the organised sector is growing
more rapidly than unorganised and expected to reach 25% share in
2025. Century Plyboards Ltd and Greenply ltd dominate the
2022 2023 2024 2025 2026 2027 2028 organised market with a combined market share of 50%.
Source: IBEF
The critical growth drivers are rising demand for re-novation
activities, popularity of fully furnished apartments, Govt. low cost
housing schemes, growing number of distribution networks and
Exhibit 17:Indian Plywood Segment outlets. In addition, the furniture industry in India is also expected to
grow significantly in the coming years, and plywood is a vital raw
material for furniture production. As the middle-class population
continues to expand, the demand for furniture will rise, further
driving the need for plywood. Technology is also playing an important
1% Greenply role in India’s Plywood industry growth. Advanced manufacturing
Century
technologies like computer controlled cutting machines and
8%
75% 25% 9% Plyboards automated production lines are being introduced in the Industry,
Greenpanel which will improve the productivity and quality.
7%
Others However, the industry faces several challenges such as lack of quality
of raw materials, impact of cheap imports by the unorganised
sectors, skilled manpower. By focusing on developing efficient supply
chains and producing value added products can help overcome these
Organised Unorg anised
challenges.
Source: IBEF, Prabhudas Lilladhar, Market Analysis Source: IBEF, Prabhudas Lilladhar, Company Analysis

Global MDF Industry Exhibit 18: Global MDF Consumption (million CBM) 136.3
Medium-Density Fibreboard (MDF) is a versatile engineered wood 131.3

product that has gained prominence in the construction, furniture, 126.5
and interior design industries. MDF is composed of wood fibres, wax, 121.9
and a resin binder. The manufacturing process involves breaking
down hardwood or softwood residuals into wood fibres, which are 117.4
then combined with wax and resin. 113.1
The Global MDF market size was valued at USD 39.7 Billion in the
year 2022 and is expected to reach USD 72.4 Billion by 2032
expanding at a CAGR of 6.9%. The global MDF consumption is
expected to grow from 113.09 million cubic meters in 2023 to 136.34 2023A 2024F 2025F 2026F 2027A 2028F
million cubic meters by 2028, at a CAGR of 3.81% during the forecast
period (2023-2028).
Exhibit 19: Global MDF Application Share (%)
The Asia-Pacific region dominated the MDF global market, holding a
share of more than 60%. China accounted for almost 40% of the the 6%
global share. Japanese construction industry is expected to be 5%
5% Furniture
blooming as the country will host the World Expo in 2025 in Osaka,
Japan, which may drive growth for Global MDF. Laminate Flooring
14%
51% Construction
Key companies profiled in the medium density fibreboard (MDF)
market report include Arauco and Constitution Pulp Inc., Century Packaging
Plyboards (India) Limited), Dare Panel Group Co., Ltd., Egger 19% Molding
Holzwerkstoffe GmbH, Greenpanel Industries Limited, Kastamonu
Other
Entegre, Korosten MDF manufacture, Kronospan Limited.
Source: alliedmarketresearch, Mordor Intelligence Source: alliedmarketresearch, Mordor Intelligence
Exhibit 20: Indian MDF Market Size (billion Rs) Indian MDF Industry
MDF has become preferred choice of furniture manufacturers

60 because it gives high quality finishing, it is low maintenance furniture,
%
R 15
CAG 52 usually denser than plywood, priced 40%-50% cheaper than premium
46 plywood.
40
35 Indian MDF industry is estimated to be at Rs. 30 bn in FY21 and
30 anticipated to grow to Rs. 60 bn by FY26 at a CAGR of 15%. These
higher margins have attracted announcements of capacity additions
from major existing players. As per industry experts, the
MDF:Plywood ratio is estimated to improve to 50:50 from the current
20:80 by 2030. However, there can be likelihood of pricing pressure
due to increasing imports and new capacity additions by the players.
2021A 2022A 2023F 2024F 2025F 2026F
MDF is extensively used in furniture, sports equipment, and shoe
Source: Niveshaay, Annual reports FY23 heels with lower structural defects than plywood, which is produced
in a labour- intensive environment. MDF has proved to be excellent
material for formation of partitions in offices, public places, to ensure
Exhibit 21: Consumption of MDF vs Plywood privacy, social distance, which has been a key reason for the
sustenance of the material demand in the time of coronavirus. MDF
share is further expected to increase with the rising prices of “Poplar
Timber”, a chief source of economy grade plywood in North India.
20%
50% Unlike Plywood industry, MDF is less likely to face competition from
80% the unorganised segment due to strong entry barriers like; High fixed
& working capital requirement, Licensing requirements for Greenfield
80% and Brownfield expansion, Higher gestation period of appx. 2.5 years,
50% strong dealer network. Due to this MDF will result in larger market
20% share for the organised players and higher growth potential
Global India India 2030E The growth drivers for MDF are Growth in real estate, increasing
demand for ready-made furniture, Reduction in furniture cycle time,
MDF Plywood Growth of online home décor platforms.
Source: Niveshaay, Annual reports FY23 Source: Niveshaay, Annual reports FY23, CARE Ratings

Products of the Company
Product Overview Key features Utilities Types

Plywood and Plywood & Blockboard is used Lifetime warranty on premium Plywood- Furniture, Green Gold Plywood- specially curated for interior
Blockboard for a wide range of applications, offerings. Panelling, Partitions, applications.
spanning from wardrobes and Anti-Viral + Anti-Bacterial - Kills Cabins, Kitchen. Green 710- Waterproof ply ideal for bathroom,
tables to shelves and cabins. 99.9% viruses & 99.7% bacteria kitchen, cabinets.
4 Press Technology for defect BlockBoard- Green BWP Blockboard- 252 months warranty, used
free product. Wardrobes, Shelves, for shutters, shelves, doors.
Negligible emissions. Shutters, Partitions, Optima G BWP Ply- perfect against threats of water.
Borer & Fungus proof, Anti- Load Bearing High strength.
termite guarantee horizontal panels. Ecotec Platinum- plywood with 100% composed core
Ecotec Mr Grade- increased durability, reasonable
price.
Bharosa Ply - Moisture resistant, perfect for interiors
Bharosa Ply Mr Blockboard-
Janasathi Mr Plywood- Cost effective
Green Club 500- Flagship product, 500% lifetime
warranty.
Green Platinum- 2 times as boiling waterproof, zero
emissions, 30 yr warranty.
Green Club 700- durability, quality and performance.
Doors Flush doors are tailor-made to Water Resistant Commercial GreenClub- Lifetime warranty on manufacturing
suit the varying needs of the Dimensionally stable Residential defect.
consumers, be it for residential Borer proof and termite resistant Ecotec- tough and 5 yr warranty
or commercial purpose. These Negligible Emission
doors have provision for lock on IS:2202 (Part-1)
both sides and are available in
three varieties
Decorative Greenply veneers are made of Borer Proof & Termite Resistant Bedroom Royal Crown Regal- Made from burma teak,
Veeners exotic species specially Negligible emissions Living Room Deco Real-
handpicked from across the Exotic Natural Veneer Dining Room Leatherette- luxury veeners
globe such as America, Brazil, Preservative Treated Hotel Interiors Burma Teak Horizontal- horizintal grains.
Europe, and Africa adding the Conforms to IS:1328 Office Spaces Lacandon- Mix n match of medium tan veeners
inherent beauty of timber to Gym Symphony- A duet of perspectives
your furniture. Engineered Veeners- Blaze, light
each flitch of veneer has a Engineered Veeners- Median, Light and shade
distinct pattern, is durable, and Engineered Veeners- Twilight,
is also E1 compliant.
PVC Products Waterproof, fire retardant and Termite Proof Modular Kitchen Green Ndure- asthetic appeal and durability.
economical, Green Ndure Anti-Bacterial & Anti-Fungal Facades Green Ndure Rokoko Doors- Stylish finish
promises to make your living Waterproof Wall Panels Green Ndure Commando Doors-
space wholesome & appealing. Fire Retardant Wardrobe
Its ease of use & installation Lead-free makes it non-toxic and Doors
makes it a suitable choice for family-friendly Office Furniture
interior décor.
Speciality Designed for a variety of Dimensionally Stable Building Structures Shuttering Plywood- used in various construction-
Plywood requirements, Green Compreg Conforms to IS:4990 Rail Coach Furnishings specific applications for building structures, materials
serves several applications Balanced Construction Automobile Body Parts for rail coach furnishing, automobile body & platforms,
ranging from the automobiles Emission Level E1 General Engineering materials meant for general engineering, chemical
to construction-specific uses for Borer Proof & Termite Resistant
Chemical plants plants, power generation system etc.
building structures. Power Generation
System
MDF Greenply MDF is rendered with Autonomous process control interior purposes Interior MDF- perfect for a wide range of applications
cutting edge PROD-IQ NEO Zero defects Handicraft Items/Toys in dry interiors. distinctive woody to brownish colour.
TECH* which uses Artificial Excellent Sturdiness-to-lightness Cabinets, Wall Exterior MDF- perfect solution for highly humid
Intelligence to analyze ratio. Cladding, Wall environments where dimensional stability is non-
microfibers to deliver each Panelling, False negotiable. pink-to-reddish hue ensures easy
board with utmost precision. Ceiling, Wardrobes identification.
Machining, Carving, HDMR 710- Designed to be used in high humidity
Packaging, Laminate situations. grade can simply be identified by Green
substrates, Tabletops colour.
etc. Pre- Laminated MDF- high-quality pre-laminated MDF
boards. The high melamine-coated décor paper makes
these boards highly abrasive and resistant to stains,
cracks, and cigarettes.
Source: Company Website, Annual Report

Procurement, Production and Distribution
Procurement:
• The company has nurtured over over 12 million seedlings and transform more than 14,000 acres of land into thriving forests. The
entirety of company’s raw material base, from timber to fuel wood, is sourced from these agroforestry initiatives, helps in
safeguarding the natural resources and contributing to their vision of sustainable manufacturing.
• The manufacturing facilities are strategically located in close proximity to company’s plantations. This reduces the logistics delivery
time, further increasing manufacturing efficiency and cost-effectiveness. This integration ensures a seamless flow of raw materials,
which further enhances the operational capabilities of the company.
• Greenply distribute high-quality clonal plants to farmers to improve raw material productivity. A team of experts provides regular
advice to farmers, recommending land specific clones that maximise yield. The company also promotes intercropping, a practice that
optimises land use and increases crop yield.
Production: Manufacturing Facilities:
Plywood Manufacturing Facilities Capacity (Mn Sqm pa) Specifications

Kriparampur, West Bengal 11 Near to Kolkata Port; Serves East and South Indian Markets
Tizit, Nagaland 8.1 Near to Nagaland timber belts; Rich source of Raw Materials
Bamanbore, Gujrat 15.8 Near to Kandla Port; Serves West and North Indian Markets
Sandila, Uttarpradesh 13.5 Commissioned production in FY23
Total Plywood Capacity 48.4
Plywood Domestic Partner Capacity (Mn Sqm pa) Specifications

Bareilly, Uttar Pradesh 10
Hapur, Uttar Pradesh (upcoming) 7.5 To meet the increasing demand
Total capacity 17.5
Face Veneer Manufacturing Capacity Capacity (CBM pa) Specifications

Gabon, West Africa 96000 Access to global markets, located near to abundant Okume species & to Port
MDF Manufacturing Capacity Capacity (CBM pa) Specifications

Capitalize growing demand of MDF, Produce value added products and diversify
Vadodara, Gujrat 2,40,000 revenue
Distribution
• Greenply has a pan-India distribution network with 2300 dealers spread across over 1100 cities and towns across 27 states servicing
through 56 branches prudently between urban and new age construction hubs. Greenply is also tapping into rural areas to increase its
presence.
• In addition to company’s strategic network design, they leverage advanced technology platforms to further enhance operational
efficiency. Company implemented QR code across its product portfolio. The QR code will enable to ensure end-to-end tracking of
every Greenply product through the entire supply chain- from manufacturing to the end consumer; to facilitate a more streamlined
logistic system, with time-bound and secure delivery processes.
Exhibit 22: Number of Dealers
Plywood- Operating Metrics FY2023 FY2022

1031 928
518 555 Annual Capacity (million. Sq.m) 34.9 34.9
Production (million. Sq.m) 29.8 31.3

1293 1329 1269 1429
Sales Volume (million. Sq.m) 65.4 57.5
FY19 FY20 FY21 FY22
Capacity Utilization (%) 86 90
Urban Rural
Source: Company Website, Annual Report Source: Company Website, Annual Report

What makes Greenply a leading interior Infrastructure brand Milestones of the Company
• Strong position in Domestic organized Plywood Industry:
Mr. Rajesh Mittal
Greenply is the second largest plywood company in India. It has 25% established first
market share in the organized plywood industry. It’s brands like 1980s Sawmill and Plywood
“Green club 500” and ”Green club plus 700” are leading in the plant in Nagaland.
premium segment.
• Entry into high growth MDF segment and expansion into

plywood:
Incorporation of Mittal
Laminates Pvt Ltd.
Company is entering into high growth MDF segment under its wholly
owned subsidiaries, and Bahu Panels Pvt Ltd which is now renamed
Listing of Equity Shares
as Greenply Specialty Panels Pvt ltd.
Renaming as Greenply
• State-of-the-Art Manufacturing facilities with Asset light 1990s
Industries Ltd.
business models for expansion:
Launch of Green 710,
Greenply has four manufacturing facilities in India, one in each
flagship Brand.
Nagaland, West Bengal , Gujrat and Uttar Pradesh with total existing
capacity of 48.4 million sq.m.
Merger with Worthy
Plywood Ltd, transfer of
• Strategically located Manufacturing Facilities:
the West Bengal Unit.
Acquisition of Galaxy
The company’s Manufacturing facilities are strategically located close Decors and Platinum
to raw material sources. This guarantees a necessary raw material Veneers.
supply at reasonable cost.
2000s Launch of Optima Brand
Key Risks:
Introduction of Green
• Slowdown in Demand: Any slowdown from real estate segment Club Plus.
may have an impact on the sales and earnings of the company.
Introduction of Eco-tec
• Delay in Ramp-up of capacities: Any delay in commissioning or Brand.
ramp-up of the announced expansion into MDF or the Joint
Venture may affect the earnings of the company. Recognition as the
leading Indian Company
• Raw Material Risk: Any significant increase in the raw material in Plywood Industry
prices, especially timber and adhesives may impact the margins of
the company. Establishment of a 2010s
veneer manufacturing
• Competition Risk: Increased competition in both Plywood and unit in Myanmar.
MDF segment, especially from the unorganized sector can reduce
the volumes and put pressure on the margins. Commencement of face
veneer production in
• Regulatory Risk: Wood is a key Raw Material for Plywood. Any Gabon
regulatory restrictions on sourcing of wood or face veneers may Commencement of
have an impact on the business. Currently Greenply is facing this Decorative Veneers unit
from the Gabon business in West Africa. in Gujarat.
Opportunities: Introduction of Green

2020s Club 5 Hundred product.
• Exploring opportunities for carbon offsetting, aiming to become a
carbon neutral Company. Launch of a range of
• Due to the resilient demand in the residential sector and the shift CARB certified E0
towards organized segments. The government’s continued focus plywood, Green Club 500
on infrastructure activities further opens opportunities for and Green Gold Platinum
growth.
• Rural areas- Company has a large opportunity to penetrate rural Expansion into the
areas as it is still an unorganised market. The company has slowly Medium Density
started to increase distribution networks into rural areas . Fibreboard (MDF)
segment
Source: Company Website, Annual Report Source: Company Website, Annual Report

Quarterly Result Analysis- Q2FY24 and Q1FY24
q Plywood Business:
• The plywood business has achieved marginal growth in sales • In Q2FY24, the MDF business achieved cash positive performance
volume and 3% growth in realizations in the last quarter Q4FY23. in the first full quarter of operation and recorded EBITDA Margins
• The company aims to achieve 10% volume growth on full year of 15.5%. The company expects 22% margins from MDF next year
basis. after full year of operation.
• The Gross margin increased to 39.5% in Q1FY24 from 36.3% in • The reason for the volume growth in MDF market share gain is
Q4FY23. However, EBITDA margin declined by 50 bps to 8.7%. due to the Greenply Brand, its unique and strong geographical
• Decline in EBITDA margin is mainly due to enhanced branding and location in the west and aggressive marketing and strategies as
marketing activities done like, sponsoring the IPL team, TV ad explained by the management.
featuring actor Junior NTR. The advertisement expense was 4.8% • However, currently there is a lot of import in the MDF segment,
which went above the average spend of 3.5% of sales. hence the market is oversupplied. Import of MDF can be threat
• The company maintained a guidance of double-digit margins in for all the players but import only takes place on the interior
plywood. But company has come down to single digit in Q1FY24, grade, whereas Greenply focus on value added MDF products.
due to subdued market conditions. The company expects to • Greenply has zero export liability. It will not be a focus area of
bounce back from Q2FY24. the company.
• The management guides to increase the margins using Operating • For MDF raw material, 60% dependency is on the local raw
leverage and Price hikes. The reason for such price hikes is material, which are within 200km areas of the factory. If we look
continuous increase in raw material prices, especially timber. The at raw material cost, the company is in par with the competitors.
company intends to pass on the increased raw material cost to To understand the cost structure for the MDF, the industry takes
the customers. anywhere between 9-12 months to mature on the cost side.
• If analysed, this type of margin expansion may benefit in the • CVD developments by the gov can be additional tailwinds for the
short term, but it is not healthy for long term growth. So, to see MDF business.
healthy growth in the plywood business, there should be some • If we compare MDF and Plywood, then cannibalisation can
capacity expansion plans from the company or growth shall be led happen in a very small amount as a slightly higher attraction can
by volume expansion. The company also states that the shift from be seen for the MDF products, as these would be preferred by
unorganised to organised may help to increase the volume OEM's, high end contractors, because if we look at plywood it is a
growth. natural product and some level of variation in thickness can be
• In Q2FY24 for the Plywood segment, the company still expects to seen. However, for home users, who mainly want reliability,
achieve 8- 10% volume growth on a YoY basis. If we look at the strength, durability, then plywood will always be their first choice.
demand scenario in Q2FY24, there has been a drag in the
premium end products and the total growth that has happened in q Furniture Hardware Business:
the plywood, is from the value segment only. Due to price • The company announced a 50:50 Joint Venture with Turkish
increase it may slightly increase the margins. The growth in the partner Samet and will be bringing the products in 80-20 concept.
value segment is 46% in Q2FY24. The Bureau of Indian standards • 80% selling products will be manufactured in India and the
may come up with a notification regarding import of wood remaining 20% slow moving products will be imported.
products. So, if that happens, it would be an advantage for the • The project will come over a period of next 4-5 years. The
Indian manufacturers. company will be investing around 300-350 cr for the project in
equal portion of Debt and Equity.
q MDF Business: • The company will be able to commission the plant by the end of
• Greenply has become the only MDF producing company in India Q1FY25 and expects to do a turnover of 100 cr in the beginning
to have FSC FM certification. MDF facility has started operations and another 100 cr in the remaining 9 months.
in this quarter Q1FY24. In Q1FY24, the MDF business made sales • Since it is a 50:50 Joint Venture, the top line sales will not get
of INR 18.1 cr with a net loss of INR 14.8cr. added, as it would be a line-item consolidation. On the entire
• For the full year, the company is expected to achieve a sales of capex of 350cr, the company expects to generate revenue of
INR 275 cr to INR 300 cr, i.e. 1 Lakh CBM material and aims to sell approx. INR800cr.
everything they produce. Next year the company expects to do
1.6 to 1.8 lakhs CBM. q Gabon Business:
• The company is currently focusing on Value added products • The Gabon business continued to remain under pressure to
(anything other than interior grade is the preference to sell). As demand side challenges and severe political tensions and the
an entry strategy, the prices have been kept 2%-2.5% cheaper company does expect the condition to improve for further
than competition. The company is primarily focused on the West quarters.
and the north region as 75% of sales is from West & North, • The company is not able to do anything from last 6-7 quarters
remaining 25% is from South & East. that might give them visibility about Gabon. They are measuring
• Currently they have more than 250-300 dealers /distributors/ on QoQ basis.
wholesalers and target to reach 800-900 dealers/ distributors/ • The company is not bullish on the business from Gabon and even
wholesalers. Out of existing dealer network of 300, 80% of them find it difficult to reach the breakeven level on QoQ basis. The
have newly joined with the brand. demand side is not exciting for Gabon business even in Q2FY24.
• Greenply launched value-added products like CARB and Boil Pro. • The total capital invested in for Gabon, West Africa facility is
The production line in Baroda can produce Boilo, which nobody around INR 260 cr.
else supplies in the market. So, the management claims that this
Boilo is a low hanging fruit for them and will encash it soon. The
realisation for Boilo is Rs. 65,000 per CBM.
q Raw Material Availability Concern: q Other Highlights:

• The company is facing challenges due to escalation in raw • The company crossed Rs. 600cr consolidated revenue, which is
material prices, since Q42023. highest ever in a single quarter.
• The major component of raw material consists of Timber and • The company believes Q3FY24 may not be good as Q2FY24 as the
Resins. The prices for Resins have declined in Q1FY24, however, performance is always subdued in Q3, due to the festive season.
the prices for timber are still on a rise. Hence, we can see increase in working capital days, due to lower
• Due to such continuous increase of prices, the company took sales days. However, from Q4FY24 sales may again go up and the
price hikes in certain products. The company does not see the working capital days will normalise.
timber prices to come down for the next 5-6 quarters. • As compared to Greenply's biggest competitor “Century
• Hence, availability of raw material would be a challenge, so Plyboards”, Greenply has been underperforming for past 4 years.
increase in prices for products would continue. Increase of 10% in The reason for such is that that company had faced issues in its
Timber price is expected. capacity platforms. Due to continuous price increases, the
• To solve this issue Greenply is working hard to ensure its own raw company's Trading platform created lots of challenges.
material sustainability by conducting its aggressive plantation • Further, the Bareilly plant which is into manufacturing of door,
drives. created capacity enhancement issues, i.e. the facility could not
produce the product. Hence, the company further faced supply
q Debt & Borrowings and other cost: side issues.
• On a consolidated basis, the company’s Net Debt levels are at Rs.
713 cr, which is well within the management guided peak net q Guidance:
debt level of Rs. 750 cr. • The company further expects to grow at a CAGR of 22% over FY22
• The debt levels are elevated due to investments in MDF business on a consolidated basis.
and other working capital requirements. The debt will reduce • The company expects to achieve 10% volume growth for the full
once the MDF business starts generating cash flows. year in the plywood business, However, one should note the
• The annual interest cost on a consolidated basis will be be around margin expansion can happen due to price hikes and play of
INR 53 cr. The Debt repayment schedule for the next 3 years operating leverage, which may not be considered healthy for long
would be INR42cr, INR 56 cr, INR 64cr. term growth prospect.
• The depreciation is estimated to be around INR 62-63 cr for the • The company is focusing more on value added products for both
entire FY24, due to initiation of commercial production of MDF. the Plywood and MDF business.
Source: Company Analysis
Exhibit 23: Plywood Value Chain Analysis

Plywood manufacturing involves selecting logs, debarking them, and
obtaining veneer through peeling or slicing. The veneer is dried,
sorted, and graded before being coated with adhesive. The glued
Veneers are pressed under heat, making them stick together. After
cooling, we trim, sand, and grade the plywood to check its quality.
We might fix any imperfections, like patching up a cake. Additional
steps include coating for protection, machining for precision, and
edge sealing for a neat finish.
Source: SMIFS Research

Exhibit 24: MDF Value Chain Analysis
In the journey of making Medium Density Fibreboard (MDF), we start
by using a chipper to break down wood into small pieces. The wood
bits then go through a Debarker to remove the outer layer. After that,
they get washed in a chip washer to clean them up. The cleaned chips
go to a defibrator, where they become tiny fibres. These fibres are
then dried in a dryer to get rid of any extra moisture. The dried fibres
go to a Mat former, where they mix with glue and turn into a flat
mat, a bit like making a batter for pancakes.
Next, the mat goes through a pre-compressor to get it ready for the
big squeeze. It enters a continuous press, which is like a giant hot
press that squeezes and heats up the mat to make the fibres stick
together well. After this, the pressed MDF panel is cooled down, and
any extra bits are trimmed off with saws to get the right shape and
size. Source: SMIFS Research

Management Analysis
Leadership
Below are the details and experience of the Management and Independent Directors:
Sr no. Name Designation Profiling Comments Political
Nexus
Found?
1 Mr Rajesh Chairman cum Mr. Rajesh Mittal, the Managing Director of Greenply Mr. Rajesh Mittal seems well-suited to lead NO
Mittal M.D Industries Limited (GIL), is popularly known as the Greenply Industries Limited. With over 30
plywood manufacturing baron of India. Since 1984, years of experience and a focus on
he has been working towards spreading the expanding the company's presence
company’s wings in different pockets of India and nationally and internationally, he brings a
abroad including Myanmar and Gabon, Africa. He wealth of knowledge to his role as
received an undergraduate degree from Dibrugarh Managing Director. His educational
University. BCom and has 30 years of experience. background and proven track record
suggest he is qualified to navigate the
complexities of the plywood manufacturing
industry.
2 Mr Sanidhya Joint MD Mr. Sanidhya is a BCom graduate with 5 years of Mr. Sanidhya Mittal shows promise in his NO
Mittal experience. He is focused on strengthening branding. focus on branding for Greenply Industries
Sanidhya Mittal’s journey with Greenply Industries Limited. His decade-long tenure and diverse
Limited started in the year 2012. He is also on the board roles indicate a well-rounded
board of Dholka Plywood Industries Pvt Ltd., RS engagement in the industry.
Homcon Ltd., Mastermind Shoppers Pvt Ltd. and
Brijbhumi Merchants Pvt Ltd.
3 Mr Manoj Joint MD & With a strong educational background as a Chartered Mr Manoj, with a robust background brings NO
Tulsian CEO Accountant, Company Secretary, and Cost & Works stability and expertise to Greenply
Accountant, Manoj brings stability and expertise to Industries Ltd. He appears well-suited to
the company. He is also on the board of Kurukshetra handle the financial aspects of the business,
Expressway Pvt Ltd., Brij Bhoomi Expressway Pvt Ltd., adding valuable experience to the
Vindhyachal Expressway Pvt Ltd. and Wainganga company's leadership.
Expressway Pvt Ltd. and Joint Managing Director &
Chief Executive Officer at Greenply Industries Ltd. In
his past career he occupied the position of Chief
Financial Officer of V.I.P. Industries Ltd., Chief
Financial Officer for Gabriel India Ltd. and Chief
Financial Officer & Executive Director at JMC Projects
(India) Ltd.
4 Mr Sushil Independent Mr. Pal received a graduate degree and an Mr Pal's educational background and board NO
Kumar Pal Director undergraduate degree from the University of positions suggest a level of expertise.
Calcutta. Susil Kumar Pal is on the board of Greenply
Industries Ltd., Metsil Exports Pvt Ltd. and Hasimara
Industries Ltd.
5 Mr Vinod Independent Vinod Kumar Kothari is Member of The Institute of Vinod Kumar Kothari has extensive board NO
Kumar Director Chartered Accountants of India and Member of positions in 14 companies which reflects a
Kothari Institute of Company Secretaries of India and on the wealth of expertise. At 62 years old, his
board of 14 other companies. Age is 62 years experience and dual qualifications make
him well-equipped to navigate complex
business matters.
6 Ms Sonali Independent Sonali Bhagwati Dalal is President for Designplus Sonali Bhagwati Dalal's profile is highly NO
Bhagwati Director Architecture Pvt Ltd. She is also on the board of commendable. She brings a wealth of
Dalal Greenply Industries Ltd., Spazzio Projects & Interiors experience and leadership to the table. Her
Pvt Ltd. and Fade to Black Design & Media Pvt Ltd. membership in prestigious organizations
and Member of Conservation Society of Delhi and reflects a commitment to the industry and
Member of Delhi Urban Arts Commission. Ms. Dalal community. With an impressive 30-year
received an undergraduate degree from Centre for career she appears exceptionally well-
Environmental Planning & Technology University. In suited to handle business challenges.
her career spanning 30 years, she has been
acknowledged amongst the top 20 architects of India.

Sr no. Name Designation Profiling Comments Political
Nexus
Found?
7 Mr Upendra Independent Mr. Challu received an undergraduate degree from Mr Upendra's educational background and NO
Nath Challu Director Chaudhary Charan Singh University. board positions suggest a level of
expertise.
8 Ms Vinita Independent Vinita Bajoria is on the board of Greenply Industries Ms Vinita's educational background and NO
Bajoria Director Ltd., Continental Valves Ltd. and Sourenee Leaves Pvt board positions suggest a level of
Ltd. expertise.
9 Mr. CFO Nitin is having domestic as well as significant Mr Nitin's impressive qualifications NO
Nitinkumar international experience of about eighteen years position him as an asset for handling
Dagdulal across diverse industries with organisations such as complex financial matters at Greenply. His
Kalan Varroc Group, Credit Suisse, RPG Group, Rabobank, track record suggests a professional well-
Kalpataru Group, and Tata Motors. Prior to joining suited to contribute to the company's
Greenply, Nitin was associated with Varroc, where he growth and success.
held the position of Head of Group Treasury, FP&A
and Investor Relations. In this last assignment, Nitin
has played a key role in transactions such as Initial
Public Offering (IPO) in 2018, Qualified Institutional
Placement (QIP) last year, various local and
international fund raise transactions and M&As. Nitin
is a Chartered Accountant with an all-India merit rank,
a CFA charter holder from The CFA Institute, USA and
a qualified Company Secretary.
10 Mr. Kaushal CS & VP- Legal Kaushal Kumar Agarwal is the Sr. VP of Legal, Mr Kaushal is likely well-suited to navigate NO
Kumar Compliance Officer & Company Sec. at Greenply the complexities of legal and regulatory
Agarwal Industries. frameworks, contributing to the overall
success and integrity of Greenply
Industries.
Commentary
1. The leadership team at Greenply come from different areas of expertise. This is a team where each person brings something unique to
the table, like wide range of expertise and backgrounds from manufacturing and finance to architecture and legal affairs. This mix of
skills and experiences will help them to take important decisions.
2. The team led by Mr. Rajesh Mittal demonstrates a forward-looking strategy. They’re not just focusing on today but also on tomorrow
and beyond. They are growing the company in different places and making smart decisions about money to ensure the company keeps
getting better.
3. Mr. Manoj being the Joint Managing Director and CEO as well as the Chairman of the Risk Management committee, plays a crucial part
in ensuring that Greenply is well-prepared to handle potential challenges.
4. People like Mr. Manoj and Mr. Nitin are experts in handling the company’s financials wisely. They’re like financial wizards, making sure
the company’s piggy bank stays healthy. They have been successful in smart money moves, like when the company went public in
2018.
5. Ms. Sonali Bhagwat Dalal, the design expert is adding a creative touch to Greenply’s projects. Her creative ideas and guidance make
sure Greenply’s work stands out.
Committees of the Board

Audit Designation Nomination Designation Stakeholder Designation CSR Designation Risk Designation
Committee Committee Relationship Committee Management
Committee Committee
Mr. Susil Mr. Susil Mr. Susil Mr Sanidhya Mr. Manoj
Kumar Pal Chairman Kumar Pal Chairman Kumar Pal Chairman Mittal Member Tulsian Chairman
Mr. Vinod
Mr. Vinod Mr. Vinod Mr Sanidhya Kumar Mr. Vinod
Kumar Kothari Member Kumar Kothari Member Mittal Member Kothari Member Kumar Kothari Member
Mr. Upendra Mr. Upendra Mr. Rajesh Mr. Upendra Mr. Upendra
Nath Challu Member Nath Challu Member Mittal Member Nath Challu Member Nath Challu Member
Mr. Rajesh Mr. Rajesh Mr. Rajesh Mr. Rajesh
Mittal Member Mittal Member Mittal Member Mittal Member
Ms Vinita Ms Vinita
Bajoria Member Bajoria Member

Shareholding Pattern
The company has majority of its shareholding with the Promotors of the company to the total of 52.12% as on September 31, 2023. FIIs are
holding 2.07%, DIIs are holding 32.39% and Public holding is at 13.41% respectively. As of Q2FY24, there are no pledged shares by the
promotors of the company. Promotors holding has increased from 51.03% in March 2017 to 52.12% in quarter ended September 2023. If we
look the FIIs holding, it has been decreased from 12.22% in March 2017 to 2.07% on September 2023. While on the other hand, DII holding
has increased from 20.26% in March 2017 to 32.39% on September 2023.
Yearly Shareholding pattern of company is as under:

Particulars Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Promoters 51.03% 51.03% 51.03% 52.01% 52.20% 52.31% 52.32%
FIIs 12.22% 11.69% 10.90% 10.82% 1.99% 3.58% 2.16%
DIIs 20.26% 19.32% 20.51% 22.88% 28.16% 31.98% 32.87%
Public 16.49% 17.96% 17.56% 14.28% 17.65% 12.14% 12.65%
Exhibit 25: Quarterly Promotor Holding Exhibit 26: Quarterly FII vs DII Holding
52.35% 36%
52.30% 31%
52.25% 26%
52.20% 21%
52.15% 16%
52.10% 11%
52.05% 6%
52.00% 1%
20 r-21 - 21 - 21 - 21 r-22 - 22 - 22 - 22 r-23 - 23 - 23 20 r-21 - 21 - 21 - 21 r-22 - 22 - 22 - 22 r-23 - 23 - 23
c- n p c n p c n p c- n p c n p c n p
De Ma Ju Se De Ma Ju Se De Ma Ju Se De Ma Ju Se De Ma Ju Se De Ma Ju Se
Source: Screener.in Source: Screener.in
FIIs DIIs
Quarterly shareholding pattern of the company
Particluar Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23
Promoters 52.20% 52.20% 52.22% 52.25% 52.25% 52.31% 52.29% 52.32% 52.32% 52.32% 52.14% 52.12%
FIIs 1.54% 1.99% 1.77% 2.68% 3.55% 3.58% 3.40% 3.18% 2.32% 2.16% 2.15% 2.07%
DIIs 26.27% 28.16% 31.51% 29.77% 31.25% 31.98% 33.41% 32.91% 32.94% 32.87% 32.41% 32.39%
Public 19.99% 17.65% 14.50% 15.30% 12.95% 12.14% 10.90% 11.57% 12.42% 12.65% 13.29% 13.41%
Exhibit 27: Shareholding Pattern (2017-2023) Exhibit 28: Top Shareholders of the company
Shareholder Name Holding (%)
Showan Investment Private Limited 37.74%

14.28% 12.14% 12.65%
16.49% 17.96% 17.56% 17.65%
Mirae Asset Great Consumer Fund 9.97%
22.88% Rajesh Mittal on behalf of Trade Combines Partnership Firm 9.49%

20.26% 19.32% 20.51% 31.98% 32.87%
28.16%
HDFC Trustee Company Ltd. A/C HDFC Multi-Asset Fund 8.94%
12.22% 11.69% 10.90% 10.82%

3.58%
1.99% 2.16% TATA Mutual Fund - TATA Small Cap Fund 4.88%
Rajesh Mittal and Sanidhya Mittal on behalf of Mittal Business holdings trust 4.76%
51.03% 51.03% 51.03% 52.01% 52.20% 52.31% 52.32% HSBC Small Cap Fund 2.31%
Bandhan Hybrid Equity Fund 2.25%
Canara Robeco Mutual Fund A/C Canara Robeco Small Cap Fund 1.67%
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
SBI Contra Fund 1.57%
Promoters FIIs DIIs Public
Source: Annual Report

Commentary
Management Remuneration
Basis our research we found that company’s remuneration policy for its executive and non- executive directors is higher than its peers.
During FY23 the company incurred managerial remuneration of INR 15.9 Crores as against INR 13.53 crores in FY22. There was a 28% hike in
Joint MD & CEO Mr. Manoj Tulsian’s remuneration which stood at INR 6.7 crores. The reason for the hike in Managing Director’s
remuneration is due to increase in perquisites because of exercise of 1,43,000 stock options under the Greenply ESOP plan 2020. The details
are as under:
Name Designation Ratio of remuneration to median Remuneration Remuneration Growth in Sales Growth Net Profit Growth
remuneration of employees FY23 FY22 remuneration YoY (%) YoY (%)
Mr. Rajesh Mittal Chairman cum M.D 285.63x 6.05 5.96 1.5% 18.3% -4.21%
Mr. Sanidhya Mittal Joint M.D 111.40x 3.15 2.37 32.9% 18.3% -4.21%
Mr. Manoj Tulsian Joint M.D and CEO 320.95x 6.7 5.2 28.8% 18.3% -4.21%
Total 717.98x 15.9 13.53 63.3% 18.3% -4.21%
Median ratio of Managing Director’s remuneration with median employee salary is 320.95x, whereas the median of the same for the peers
stood at 153.47x. The remuneration of M.D as a percentage of Profit Before Tax (PBT) for FY23 is 6.04%, whereas the median of the same for
the peers is 3.78%. However, there is a decrease in median remuneration of employees in FY23 by 1.99%. In FY23, the total managerial
remuneration of INR 15.9 cr exceeds the prescribed 11% limit of the Net Profit (INR 10 cr) as per the Companies Act, 2013. However, the Board
of Directors has approved it. The number of employees on the rolls of the company are 2596. If we compare with our direct competitor,
"Century Plyboards”, Greenply’s M.D has a very high remuneration as a % of PBT. The details are as under:
Comparison of Peer’s Remuneration:
Company Name Name of Executive Designation Ratio to median Remuneration PBT Remuneration.
remuneration of employees (in Crores) (in Crores) ( % of PBT)
Greenply Industries Ltd Mr Manoj Tulsian Joint MD and CEO 320.95x 6.70 111 6.04%
Greenpanel Industries Mr Shobhan Mittal MD and CEO 230.49x 9.18 351 2.61%
Century Plyboards limited Mr Prem Kumar Bhajanka MD 160.93x 4.86 512 0.95%
Greenlam Industries Mr Saurabh Mittal MD and CEO 186.24x 8.19 164 5.00%
Sheela Foam Limited Mr Rahul Gautam MD 146.00x 4.25 273 1.56%
Kajaria Ceramics Mr Ashok Kajaria Chairman & MD 92.00x 5.67 462 1.23%
Duroply Mr Sudeep Chitlangia MD 13.71x 0.72 8 9.05%
Mean 138.23x 5.65 268.71 3.78%

Median 153.47x 5.67 273.00 2.61%
We have observed variation in revenue growth of the company and growth in managerial remuneration. The revenue grew at 9% CAGR over
the last 3 years, whereas the managerial remuneration grew at 44% CAGR over the last 3 years. The details are as under:
Particulars Mar-20 Mar-21 Mar-22 Mar-23
Revenue Growth 0.57% -17.96% 34.16% 18.11%
Net Profit Growth -41.25% 29.79% 55.74% -4.21%
Growth in Managerial Remuneration -6.29% 47.39% 71.27% 17.52%
71.27%
55.74%
47.39%
29.79% 34.16%
18.11% 17.52%
0.57%
-6.29% -4.21%
-17.96%
-41.25%
Reven ue Growth Net P rofit Growth Growth in M anagerial R emuneration

Mar-20 Mar-21 Mar-22 Mar-23
Board Efficiency
The efficiency of the Board can be analyzed by their contribution in various important meetings held in FY23. The details are as under:
No. of Board Meetings
Name of Directors Category of Diretorship Held Attended Attendance at Last AGM
Mr. Rajesh Mittal Promotor & Exec. 6 6 Yes
Mr. Manoj Tulsian Non- Promotor & Exec. 6 5 Yes
Mr. Sanidhya Mittal Promotor & Exec. 6 6 Yes
Mr. Susil Kumar Pal Non-Exec. 6 6 Yes
Mr. Vinod Kumar Kothari Non-Exec. 6 4 Yes
Ms. Sonali Bhagwati Dalal Non-Exec. 6 5 Yes
Mr. Uppendra Nath Challu Non-Exec. 6 6 Yes
Ms. Vinita Bajoria Non-Exec. 6 6 Yes

Quarterly Snapshot
Particulars (INR Crores) FY23Q2 FY23Q3 FY23Q4 FY24Q1 FY24Q2 FY24Q3E FY24Q4E
Net Revenue 494.75 428.19 469.16 476.14 607.73 577.37 604.76
Change (QoQ %) -13.5% 9.6% 1.5% 27.6% -5.0% 4.7%
Total Expenditure 445.86 395.63 421.59 446.32 556.45 534.73 561.918
EBITDA 48.89 32.55 47.57 29.82 51.28 42.64 42.84
Change (QoQ %) -33.4% 46.1% -37.3% 72.0% -16.9% 0.5%
EBITDA Margin (%) 9.9% 7.6% 10.1% 6.3% 8.4% 7.4% 7.1%
Depreciation 8.88 9.64 10.32 13.32 16.17 17.14 18.97
Finance cost 7.33 6.21 7.6 12.97 17.75 18.65 21.412
Other Income 1.43 3.07 9.29 1.4 3.65 4.60 4.876
Profit Before Tax 34.1 29.4 38.95 4.93 21.01 11.44 7.334
Tax 9.15 -8.83 11.25 3.78 6.97 7.20 5.49
Effective tax rate (%) 26.82% -30.04% 28.89% 76.71% 33.17% 62.95% 74.89%
Net Profit 23.59 36.04 11.07 0.82 13.91 4.24 1.84
Change (QoQ %)
52.8% -69.3% -92.6% 1596.3% -69.53% -56.6%
Net Profit Margins (%) 4.8% 8.4% 2.4% 0.2% 2.3% 0.7% 0.3%
EPS 1.92 2.93 0.9 0.07 1.13 0.06 0.386
Yearly Snapshot
Particulars (INR Crores) FY19 FY20 FY21 FY22 FY23 FY24E FY25E
Net Revenue 1,416.50 1,422.50 1,173.70 1,572.70 1,861.20 2294.60 2620.80
Change (QoQ %)
0.4% -17.5% 34.0% 18.3% 23.3% 14.2%
Operating Expenses 1269.2 1264.8 1050.3 1412.5 1,676.70 2035.30 2299.4
EBITDA 143.00 155.60 115.10 150.30 168.90 259.30 321.4
Change (QoQ %)
8.8% -26.0% 30.6% 12.4% 53.5% 23.9%
EBITDA Margin (%) 10.1% 10.9% 9.8% 9.6% 9.1% 11.3% 12.3%
Depreciation 22.4 25.7 23.1 25.8 36.5 63.40 69.2
Finance cost 18.6 20.8 16.6 11.9 26.2 53.10 40.9
Other Income 4.4 2 8.4 9.9 15.6 6.70 7.2
Profit Before Tax 106.2 111.2 83.7 122.4 121.7 149.50 218.5
Tax 30.16 24.58 21.01 29.62 21.05 34.50 50.90
Effective tax rate (%) 28.40% 22.10% 25.10% 24.20% 17.30% 23.08% 23.30%
Net Profit 79.70 47.3 60.9 94.7 91.4 115.00 167.60
Change (QoQ %)
-40.7% 28.8% 55.5% -3.5% 25.82% 45.7%
Net Profit Margins (%) 5.6% 3.3% 5.2% 6.0% 4.9% 5.0% 6.4%
EPS 6.5 3.9 5 7.7 7.4 9.0 14.0
Source: Screener.in, Consensus Estimate


Commentary
Revenue Exhibit 29: Greenply's Revenue
3,000.00 2620.80 40.0%
In recent Quarterly Results, the company posted highest consolidated 2294.60
revenue of 600 cr, 27% growth in Q2FY24. On YoY basis company 1,861.20 20.0%
2,000.00 1,422.50
1,572.70
achieved 18% revenue growth. The company achieved cash positive 1,173.70 0.0%
performance from the MDF segment. Examining the Plywood 1,000.00
segment, it experienced a growth rate of 9.7%. However, this falls -20.0%
short of the double-digit growth initially indicated by the 0.00 -40.0%
management. The company intends to increase the Top-line margin Mar-20 Mar-21 Mar-22 Mar-23 Mar-24E Mar-25E
by use of Operating leverage and Price hikes. Revenue Revenue Gr owth
Peer Analysis Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Greenply revenue growth 19.85% 8.30% -29.32% 5.04% 1.34% -45.32% 54.82% 0.57% -17.96% 34.16% 18.11%
Peers Median revenue Growth (%) 11.90% 14.04% 17.80% 3.34% 10.79% 6.31% 9.04% -5.01% -8.07% 33.23% 20.48%
Peers average revenue growth (%) 1.12% 9.12% 15.95% 1.11% 10.07% 7.65% 8.76% -4.20% -7.20% 26.95% 32.29%
Exhibit 30: Greenply vs Peers Revenue Growth

When examining Greenply's revenue growth in comparison to its
60.00%
peers, a notable characteristic is its historical volatility and
40.00%
inconsistency. Nevertheless, there appears to be a trend towards
20.00%
correlation starting from FY21. The reason for such inconsistency is
0.00%
that the company had been facing issues in its capacity platforms,
due to continuous price hikes, the trading platform created -20.00%
challenges, Gabon business faced political problems, and Bareilly -40.00%
plant failed to produce the required products. Further, the company -60.00%
3 4 5 6 7 8 9 0 1 2 3
expects the company to grow at a CAGR of 22%. ar
-1
ar
-1
ar
-1
ar
-1
ar
-1
ar
-1
ar
-1
ar
-2
ar
-2
ar
-2
ar
-2
M M M M M M M M M M M
Greenply revenue Growth (%) Peers Median revenue Growth (%)

Exhibit 31: Greenply vs Peers EBITDA Margin EBITDA Margins

15.5% In recent Quarterly Results, the company posted the consolidated
14.0% 14.3% EBITDA at INR 168.9 cr with margin of 9.1% (QoQ growth of 72%). In
13.5% plywood business, the EBITDA Margin for Q2FY24 stood at 7.9%,
13.0%
12.3% which declined by 9% from Q1FY24 of 8.7%. For the MDF business,
12.0%
11.5% 11.3% the company recorded an EBITDA margin of 15%. The decline in
11.1%
10.4% 10.5% margins within the plywood business can be attributed to the rising
10.2% 9.9% costs of raw materials, particularly timber, coupled with a slowdown
in the demand for premium products and as well the Gabon
operations. The overall growth observed is primarily driven by the
value-added segment, accounting for 46% in Q2FY24. Greenply’s
FY19 FY20 FY21 FY22 FY23 FY24E FY25E
EBITDA Margins are lower than its Peers Median EBITDA Margins.
Greenply EBITDA (%) Peer EBITDA (%) The company expects Margin improvements in the H2 FY24.
Inventory
Exhibit 32: Greenply vs Peers Inventory days
The company’s Growth in revenue and Growth in Inventory are
positively correlated, while a marginal decline in Inventory days can 157
be witnessed in FY23 (99 days in FY21 to 93 days in FY23). The 147
Average inventory as % of Revenue for FY23 stood at 13.7%, which is
below the company median of 15%. This indicates, the inventory is 125
125
equivalent to 13.7% of its total revenue. By comparing Greenply's
114
Inventory Days of 93 to the median Inventory Days of 114 among its
peers, it can be concluded that Greenply maintains a more efficient 99
inventory management approach by keeping a lower inventory level. 93 93
The decrease in inventory levels can be attributed to the industry's 81
77
increased focus on discipline, and the company's adoption of a new
working style in recent years. As a result, the company experiences
no working capital pressure. Furthermore, the broader industry is
witnessing a trend where more players are emphasizing effective
working capital management. Even with an increase in raw material Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
costs, the company has sustained its Inventory as a percentage of
COGS at 25.6%, aligning closely with the company's median of 26%. Greenply Inventory days Peers Inventory days

Commentary
Exhibit 33: Greenply vs Peers Debtor Days Trade Receivables
Following the impact of Covid, the company has experienced a

85 86
76 significant reduction in Trade Receivables, indicating that there have
been no delays in payments from debtors. The company’s average
53 55
46 44 47 41 45 receivables days stood at 41 days in FY23 as compared to the
company’s median debtor days of 69. The decrease in debtor days is
not because of a relaxed credit line but comes from the company
putting more focus on its institutional line of business. Notably, the
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Trading business shows a shorter time debtor days compared to the
institutional business. If we compare Greenply's debtor days of 41 to
Greenply Debtor Days Peers Debtor Days the median debtor days of 45 among its peers, we can conclude that
Greenply is efficient in collecting payments from its debtors.
Exhibit 34: Revenue Growth vs Receivables Growth
54.8% The company’s receivable ageing analysis reflects that 94% of the
outstanding debtors are less than 6 months. The top 5 customers
34.2%
23.1%
contribute 7.27% revenue in FY23. The proportion of receivables as a
17.0% 18.1% percentage of total assets has decreased, declining from 21% in FY21
6.6%
0.6% to 13.6% in FY23. The Cash Conversion Cycle has gone up to 57 in
FY23.
-4.1%
-18.0% FY23 shows increased trade receivables and a higher Cash Conversion
Cycle (CCC) compared to FY22, indicating challenges in working
-45.7% capital management. While sales grew by 18% and debtor days
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 remained steady, the rise in CCC reflect difficulties in converting
Reven ue Growth Receivab les Growt h
earnings into cash. Customer contributions is diverse, but focus
Source: Company Analysis should be on to improve cash flows.
Interest Coverage Cost Exhibit 35: Greenply vs Peers Int Coverage Ratio
In the fiscal year 2023, the company's interest expense rose
significantly by 117% to Rs. 26 crore compared to the previous year's 38.2
expense of Rs. 12 crore. Due to this increase, the current interest
coverage ratio stands at 4.3x, which is below the company's median
ratio of 6x. The rise in interest costs over the period is attributed to 20.5 20.9
the company's debt raise for the capital expenditure on
commissioning the MDF capacity. The impact of the interest cost will 10.3
6.5 5.2 6.2 5.2 5.4 4.3
become more apparent starting from Q2 onwards Comparing
Greenply's interest coverage ratio of 4.3x to its peers' median ratio of
20.9x, it can be observed that Greenply is less effective in covering its Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
interest payments compared to the industry benchmark. The
weighted average Interest rate for all the borrowings can be Greenply Int Coverage ratio Peer Int Coverage Ratio
estimated to be 6.81%. Source: Company Analysis
Cash Flows
Exhibit 36: Greenply v/s Industry Median
The company’s Cash Flow from Operations (CFO) for the FY23 is Rs 62
250% cr, which has declined by 32% from FY22. Greenply's CFO/EBITDA
ratio stands at 41.9%, notably lower when compared with the
198.3%
200% 176.6% industry median CFO/EBITDA ratio of 71.4%. This represents a decline
from the previous year and exhibits considerable volatility over the
150% years. The persistently low CFO/EBITDA ratio indicates that the
company faces challenges in consistently converting its earnings into
100% cash flows. We can see two spikes in the ratio, where it went above
100%. In March 2021, the ratio reached 198% because the trade
receivables declined significantly by 45%. This led to a highly effective
50%
conversion of earnings into cash flow for that particular year. And
Why did the Receivables drop in FY21? It was due to company’s
0%
introduction of new set of policies.
2 3 4 5 6 7 8 9 0 1 2 3
-1 -1 -1 -1 -1 -1 -1 -1 -2 -2 -2 -2 A favourable CFO/EBITDA ratio for B2B companies is around 60%,
ar ar ar ar ar ar ar ar ar ar ar ar
M M M M M M M M M M M M whereas B2C companies find a 70% ratio favourable. Additionally, a
higher CFO/EBITDA ratio signifies a robust Return on Invested Capital
Greenply CFO/EBITDA Industry Median CFO/EBITDA
(ROIC), which is not in case of Greenply.

DUPONT ANALYSIS
ROE Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Median Mean
Net Profit 117.60 124.20 128.30 123.20 118.20 74.70 47.70 63.30 94.70 91.40
Average Shareholder
Equity 528.86 535.03 550.32 693.49 825.08 606.36 356.57 407.08 480.42 570.88
ROE 22.24% 23.21% 23.31% 17.77% 14.33% 12.32% 13.38% 15.55% 19.71% 16.01% 16.89% 17.78%
ROE- Dupont Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 117.6 124.2 128.3 123.2 118.2 74.7 47.7 63.3 94.7 91.4
Revenue 2225.2 1568.5 1657.3 1671.7 1715.4 1416.5 1422.5 1173.7 1572.7 1861.2
Net Profit Margin (A) 5.28% 7.92% 7.74% 7.37% 6.89% 5.27% 3.35% 5.39% 6.02% 4.91% 5.71% 6.02%
Revenue 2225.2 1568.5 1657.3 1671.7 1715.4 1416.5 1422.5 1173.7 1572.7 1861.2
Average Total Asset 1696.05 1484.67 1174.69 1387.34 1928.51 1679.83 1014.45 930.23 1030.13 1414.91
Asset turnover Ratio
(B) 1.31 1.06 1.41 1.20 0.89 0.84 1.40 1.26 1.53 1.32 1.29 1.22
Average Total Asset 1696.05 1484.67 1174.685 1387.335 1928.505 1679.83 1014.45 930.225 1030.13 1414.91
Average Shareholder
Equity 528.86 535.03 550.32 693.49 825.08 606.36 356.57 407.08 480.42 570.88
Equity Multiplier (C) 3.21 2.77 2.13 2.00 2.34 2.77 2.85 2.29 2.14 2.48 2.41 2.50
ROE (A*B*C) 22.24% 23.21% 23.31% 17.77% 14.33% 12.32% 13.38% 15.55% 19.71% 16.01% 16.89% 17.78%
Peer Analysis Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Greenply 22.24% 23.21% 23.31% 17.77% 14.33% 12.32% 13.38% 15.55% 19.71% 16.01%
Century PlyBoards 21.50% 38.56% 32.14% 26.99% 19.51% 15.28% 11.47% 15.07% 20.10% 20.06%
DuroPly -28.57% 0.00% -42.86% -4.08% -6.41% 1.30% -5.56% -2.86% -9.52% 5.62%
Rushil Décor 4.05% -1.35% 8.75% 20.00% 18.13% 6.80% 10.09% 5.30% 8.01% 21.49%
Kajaria Ceramics 25.99% 24.97% 24.28% 21.62% 16.95% 14.54% 14.82% 16.53% 18.05% 14.87%
Peers Median 12.78% 12.49% 16.52% 20.81% 17.54% 10.67% 10.78% 10.19% 13.03% 17.47%
Peers Average 5.74% 15.55% 5.58% 16.13% 12.05% 9.48% 7.71% 8.51% 9.16% 15.51%
Exhibit 36: ROE Dupont Analysis The Return on Equity (ROE) of the company has decreased from
19.71% in FY22 to 16.01% in FY23. The ROE is also below the
Company’s median ROE of 16.9%.
The likely cause for the decrease in Return on Equity (ROE) is the
decline in net profit margins. The company's net profit has decreased
due to various factors, including rising raw material costs, particularly
in Timber, ongoing challenges in the Gabon business stemming from
political issues and demand-side challenges, reduced margins in the
Plywood segment due to a slowdown in demand for premium
products, challenges in the company's trading platform, and capacity
5 6 7 8 9 0 1 2 3 enhancement issues at the Bareilly plant.
r-1 ar-1 ar-1 ar-1 ar-1 ar-2 ar-2 ar-2 ar-2
Ma M M M M M M M M
Further reason for decrease in ROE can be due to increase in the
NP Margin ROE Asset T/O Equity Multiplier Equity Multiplier, it has increased to 2.48x in FY23 from 2.14X in FY22.
The increase in leverage is attributed to a 260% rise in long-term
Exhibit 37: Greenply vs Peers ROE borrowings, escalating from Rs. 143 crore in FY22 to Rs. 515 crore in
FY23. The company secured additional debt to fund the
25% commissioning of the MDF facility in Gujarat, perform maintenance
capital expenditures for other facilities, and establish a Joint Venture
20% for the furniture hardware business in Sandila.
As per the management guidance, the company is within its overall
15%
peak debt level of 750 cr and will continue to maintain the same for
H2 FY24. The repayment schedule of the following debt will take
10%
place in FY24.
5%
Comparing Greenply's FY23 ROE of 16.01% to the median ROE of its
0% peers at 17.47%, it indicates that Greenply has a slightly lower Return
Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 on Equity. However, in a broader context, it aligns consistently with
the industry median.
Greenply Peers Median

ROCE Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Median Mean
EBIT 209 162 189.5 194.2 180.9 120.5 129.9 92 124.4 132.4
Avg Capital Employed 1245.86 1075.03 851.32 1051.49 1404.08 1087.36 621.07 648.08 736.42 1073.38
ROCE 16.78% 15.07% 22.26% 18.47% 12.88% 11.08% 20.92% 14.20% 16.89% 12.33% 15.92% 16.09%
ROCE- Dupont Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
EBIT 209 162 189.5 194.2 180.9 120.5 129.9 92 124.4 132.4
Revenue 2225.2 1568.5 1657.3 1671.7 1715.4 1416.5 1422.5 1173.7 1572.7 1861.2
EBIT Margin (A) 9.39% 10.33% 11.43% 11.62% 10.55% 8.51% 9.13% 7.84% 7.91% 7.11% 9.26% 9.38%
Revenue 2225.2 1568.5 1657.3 1671.7 1715.4 1416.5 1422.5 1173.7 1572.7 1861.2
Avg Capital Employed 1245.86 1075.025 851.32 1051.485 1404.08 1087.36 621.065 648.075 736.42 1073.38
Capital Turnover Ratio
(B) 1.79 1.46 1.95 1.59 1.22 1.30 2.29 1.81 2.14 1.73 1.76 1.73
ROCE (A*B) 16.78% 15.07% 22.26% 18.47% 12.88% 11.08% 20.92% 14.20% 16.89% 12.33% 15.92% 16.09%
Greenply 16.78% 15.07% 22.26% 18.47% 12.88% 11.08% 20.92% 14.20% 16.89% 12.33%
DuroPly -5.00% 8.00% -2.00% 2.00% 2.00% 7.00% 3.00% -2.00% 3.00% 11.00%
Rushil Décor 11.00% 12.00% 16.00% 22.00% 21.00% 10.00% 6.00% 5.00% 8.00% 17.00%
Peers Median 13.00% 18.50% 21.00% 22.50% 19.50% 13.50% 10.00% 12.50% 16.00% 18.50%
Peers Average 13.25% 19.75% 18.50% 19.50% 16.50% 14.25% 10.25% 11.00% 16.25% 18.75%
Exhibit 38: ROCE Dupont Analysis The Return on Capital Employed (ROCE) is a critical financial metric
that reflects the efficiency with which a company utilizes its capital to
generate profits. In the case of Greenply, the ROCE experienced a
notable decrease from a peak of 20.92% in FY20 to 12.33% in FY23.
This decline is substantial, especially when considering that the
current ROCE falls below the company's own median ROCE of 15.92%.
The reason for drop in ROCE is due to drop in EBIT margins (EBIT
margin fell from 7.9% to 7.11%), mainly due to increase in raw
material prices. To solve this issue, Greenply plans to increase the
product prices and pass the price hikes onto the customers. The
company further intends to pursue volume growth through
r-1
5
r-1
6
r-1
7
r-1
8
r-1
9
r-2
0
r-2
1
r-2
2
r-2
3 increasing capital expenditure. The increase in capex has resulted in
Ma Ma Ma Ma Ma Ma Ma Ma Ma increase in average capital employed, without an immediate rise in
ROCE EBIT Margin Capital T/O profits, which contributed to the decline in ROCE. It may take some
time for the new investments to start generating returns. In the short
term, increased capex may lead to a decline in ROCE, but if the
investments contribute to increased profitability and efficiency over
Exhibit 39: Greenply vs Peers ROCE time, ROCE may improve.
24% The ROCE has been declining since FY20 and the company is
22% increasing its sales by using additional capital, but still experiencing
20% decline in margins, which may indicate a potential quality issue in the
18% use of capital.
16%
14% Comparing Greenply's ROCE of 12.33% to the industry peers' median
12% of 18.5% suggests that Greenply's capital utilization is less efficient
than that of its peers. Lower ROCE compared to peers may indicate
10%
areas for improvement in terms of operational efficiency.
8%
4 5 6 7 8 9 0 1 2 3
-1 -1 -1 -1 -1 -1 -2 -2 -2 -2 Despite these challenges, the management remains optimistic. They
ar ar ar ar ar ar ar ar ar ar
M M M M M M M M M M foresee no further escalation in raw material prices and expect
margins to rebound to double digits in the second half of FY24.

ROA Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Median Mean
Net profit 117.6 124.2 128.3 123.2 118.2 74.7 47.7 63.3 94.7 91.4
Average Total Assets 1696.05 1484.67 1174.685 1387.335 1928.505 1679.83 1014.45 930.225 1030.13 1414.91
ROA 6.93% 8.37% 10.92% 8.88% 6.13% 4.45% 4.70% 6.80% 9.19% 6.46% 6.87% 7.28%
ROA- Dupont Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 117.6 124.2 128.3 123.2 118.2 74.7 47.7 63.3 94.7 91.4
Revenue 2225.2 1568.5 1657.3 1671.7 1715.4 1416.5 1422.5 1173.7 1572.7 1861.2
Net Profit Margin
(A) 5.28% 7.92% 7.74% 7.37% 6.89% 5.27% 3.35% 5.39% 6.02% 4.91% 5.71% 6.02%
Revenue 2225.2 1568.5 1657.3 1671.7 1715.4 1416.5 1422.5 1173.7 1572.7 1861.2
Average Total Assets 1696.05 1484.67 1174.685 1387.335 1928.505 1679.83 1014.45 930.225 1030.13 1414.91
Asset Turnover ratio
(B) 1.31 1.06 1.41 1.20 0.89 0.84 1.40 1.26 1.53 1.32 1.29 1.22
ROA (A* B) 6.93% 8.37% 10.92% 8.88% 6.13% 4.45% 4.70% 6.80% 9.19% 6.46% 6.87% 7.28%
Greenply 6.93% 8.37% 10.92% 8.88% 6.13% 4.45% 4.70% 6.80% 9.19% 6.46%
DuroPly -4.92% 0.00% -5.22% -1.21% -2.51% 0.49% -1.87% -0.96% -2.93% 2.22%
Rushil Décor 1.01% -0.38% 2.65% 8.45% 8.22% 2.42% 2.93% 1.73% 2.59% 7.82%
Peers Median 3.58% 5.94% 7.48% 10.32% 8.93% 5.33% 5.23% 6.14% 7.71% 9.11%
Peers Average 3.35% 6.39% 6.05% 7.97% 6.51% 5.20% 4.75% 5.89% 6.63% 8.65%
Exhibit 40: ROA Dupont Analysis The Return on Asset (ROA) ratio is a critical indicator of a company's
efficiency in generating profits in relation to its total assets. In
Greenply's financial performance, there has been a noticeable
decline in ROA from 9.19% in FY22 to 6.46% in FY23. A Dupont
analysis reveals that this reduction is primarily due to a decline in the
Net Profit Margin, reflecting that the company is earning less profit
for every unit of revenue generated. This indicates decrease in pricing
power of the company.
An additional factor contributing to the overall decline in ROA is the

slight reduction in the Asset Turnover ratio, dropping from 1.53x in
5 6 7 8 9 0 1 2 3 FY22 to 1.32x in FY23. However, despite this decrease, the Asset
r-1 r-1 r-1 r-1 r-1 r-2 r-2 r-2 r-2
Ma Ma Ma Ma Ma Ma Ma Ma Ma Turnover ratio remains above the company's median of 1.29x,
indicating continued efficiency in generating revenue from its assets.
ROA NP Margin Asset T/O
Even after the decline in ROA, Greenply has witnessed an increase in
average total assets due to increased capex, growing from Rs. 1030
Exhibit 41: Greenply vs Peers ROA crore in FY22 to Rs. 1414 crore in FY23. This expansion in assets,
however, has not been met with a proportional increase in returns.
12.00%
Comparing Greenply's ROA to industry benchmarks, the industry
10.00% median ROA stands at 9.11%, highlighting a performance gap. A more
8.00%
direct competitor and industry leader, Century Plyboards, boasts an
ROA of 14.14%, reflecting that Greenply is comparatively less efficient
6.00% in managing its assets to generate profits
4.00%
2.00%
0.00%
4 5 6 7 8 9 0 1 2 3
-1 -1 -1 -1 -1 -1 -2 -2 -2 -2
M M M M M M M M M M


ROIC Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Median Mean
NOPAT 160.721 142.56 143.262 133.6096 124.4592 84.7115 101.322 69.552 94.2952 109.4948
Invested Capital 1318.84 810.19 849.32 1140.27 1556.14 564.67 646.53 511.66 775.06 1308.64
ROIC 12.19% 17.60% 16.87% 11.72% 8.00% 15.00% 15.67% 13.59% 12.17% 8.37% 12.89% 13.12%
ROIC- Dupont Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
NOPAT 160.721 142.56 143.262 133.6096 124.4592 84.7115 101.322 69.552 94.2952 109.4948
Revenue 2225.2 1568.5 1657.3 1671.7 1715.4 1416.5 1422.5 1173.7 1572.7 1861.2
NOPAT Margin (A) 7.22% 9.09% 8.64% 7.99% 7.26% 5.98% 7.12% 5.93% 6.00% 5.88% 7.17% 7.11%
Revenue 2225.2 1568.5 1657.3 1671.7 1715.4 1416.5 1422.5 1173.7 1572.7 1861.2
Invested Capital 1318.84 810.19 849.32 1140.27 1556.14 564.67 646.53 511.66 775.06 1308.64
Capital Turnover
ratio (B) 1.69 1.94 1.95 1.47 1.10 2.51 2.20 2.29 2.03 1.42 1.94 1.86
ROIC (A) * (B) 12.19% 17.60% 16.87% 11.72% 8.00% 15.00% 15.67% 13.59% 12.17% 8.37% 12.89% 13.12%
Greenply 12.19% 17.60% 16.87% 11.72% 8.00% 15.00% 15.67% 13.59% 12.17% 8.37%
DuroPly -4.00% 2.00% 0.00% 5.00% 2.00% 6.00% 7.00% 2.00% 5.00% 7.00%
Rushil Décor 5.00% -2.00% 7.00% 15.00% 14.00% 5.00% 6.00% 4.00% 5.00% 12.00%
Peers Median 10.00% 11.50% 14.00% 16.00% 14.00% 9.00% 9.00% 9.50% 13.00% 14.50%
Peers Average 9.50% 10.75% 12.50% 14.50% 11.75% 10.00% 10.00% 10.25% 13.00% 14.00%
Exhibit 42: ROIC Dupont Analysis The Return on Invested Capital (ROIC) is an Important metric that
assesses a company's ability to generate returns from the capital
invested in its operations. In the case of Greenply, there has been a
decrease in ROIC from 12.17% in FY22 to 8.37% in FY23. A closer
examination using Dupont analysis indicates that the likely reason for
this decline is a reduction in the Net Operating Profit After Tax
(NOPAT) Margin.
The NOPAT Margin, a key component of ROIC, reflects the

percentage of revenue that translates into operating profit after
taxes. The decline in this margin suggests that the company is earning
a lower profit for each rupee of revenue generated.
5 6 7 8 9 0 1 2 3
r-1 r-1 r-1 r-1 r-1 r-2 r-2 r-2 r-2
Ma Ma Ma Ma Ma Ma Ma Ma Ma
Furthermore, the Capital Turnover ratio has slightly reduced from
ROIC NOPAT Margin Capital T/O 2.03x in FY22 to 1.42x in FY23. It is also below the company's median
of 1.9x. It's important to note that this reduction in Capital Turnover
indicates a decrease in the efficiency of utilizing capital to generate
Exhibit 43: Greenply vs Peers ROIC sales. The invested capital has concurrently increased from Rs. 775
20% crore in FY22 to Rs. 1308 crore in FY23, reflecting a substantial
18% expansion in the capital base.
16%
14% Comparing Greenply's ROIC of 8.37% to the industry median ROIC of
12% 14.5% reveals a performance gap. Additionally, when compared with
10% a direct competitor and industry leader, Century Plyboards, boasting
8%
an ROIC of 20%, it becomes evident that Greenply is comparatively
6%
less efficient in generating returns from its invested capital.
4%
2%
0%
4 5 6 7 8 9 0 1 2 3
-1 -1 -1 -1 -1 -1 -2 -2 -2 -2
M M M M M M M M M M


Unlocking Financial Potential : (1/1)
Exhibit 44: Revenue Growth at &% CAGR Exhibit 45: Net Profit & Net Profit Margins (%)
100 7.0%
90 6.0%
1,861.20 6.0%
80 5.6%
1,572.70
1,416.50 1,422.50 70 5.2% 4.9%5.0%
1,173.70 60 3.3% 4.0%
50
40 3.0%
30 2.0%
20
1.0%
10 79.70 47.3 60.9 94.7 91.4
0 0.0%
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Pro fi t Net Pro fi t Margi ns (% )
Exhibit 46: EBITDA Growth at 4% CAGR Exhibit 47: Peers EBITDA Comparison– Lowest growth
12.0% 650%
170.00 10.9%
9.6% 10.0% 550%
160.00 10.1%
9.8% 9.1%
150.00 8.0% 450%
140.00
6.0% 350%
130.00
4.0% 250%
120.00
2.0% 150%
110.00
143.00 155.60 115.10 150.30 168.90
100.00 0.0% 50%
Greenp ly Cent uryPlyb oards Greenp an el

EBITDA EBITDA Margin (%)
Ru shil Décor Kajaria Ceramics
Exhibit 48: Net Capex – Capacity Utilization (In Crores) Exhibit 49: FCFF – Deteriorating (In Crores)
210.32
412.37
13.89 2.08
229.29
84.11 -137.29
55.92
17.68
-350.37
Exhibit 50: Net worth & Net Debt, Net Debt / Equity Exhibit 51: Expenditure as % of Sales
800 108% 120%

15% 15% 15% 15% 15%
700
100%
600 11% 12% 13% 12% 13%
75% 74% 80%
500 3% 4% 4% 3% 3%
400 60%
57%
300 47% 40% 60% 59% 59% 60% 61%
200
20%
100
335 250 378 279 436 203 538 309 644 696
0 0%
Networth Debt Debt/Equity Material Cos t Manu factur ing C ost Employee Cos t Other Cos t

Key Financial Ratios
Profitilibilty Ratios Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Median Mean
Sales Growth -29.5% 5.7% 0.9% 2.6% -17.4% 0.4% -17.5% 34.0% 18.3% 0.9% -0.3%
Expenses Growth -30.3% 3.6% 1.1% 4.2% -14.4% -0.3% -17.0% 34.5% 18.7% 1.1% 0.0%
Gross Profit Growth -29.5% 10.4% 8.1% 4.2% -31.6% 4.6% -17.7% 30.4% 14.6% 4.6% -0.7%
EBITDA Growth -22.5% 14.4% 2.4% -5.8% -38.0% 8.8% -26.0% 30.6% 12.4% 2.4% -2.6%
EBIT Growth -22.5% 17.0% 2.5% -6.8% -33.4% 7.8% -29.2% 35.2% 6.4% 2.5% -2.6%
PBT Growth -17.9% 35.3% 5.5% -4.1% -38.1% 4.7% -24.7% 46.2% -0.6% -0.6% 0.7%
Net Profit Growth 5.6% 3.3% -4.0% -4.1% -36.8% -36.1% 32.7% 49.6% -3.5% -3.5% 0.8%
Dividend Growth 0.0% 0.0% 1.7% 0.0% -33.4% 0.0% 0.0% 25.1% 0.2% 0.0% -0.7%
Dividend Payout 6% 6% 6% 6% 7% 6% 10% 8% 6% 7% 6.0% 6.8%
Gross Margin 41.9% 41.9% 43.8% 46.9% 47.7% 39.5% 41.1% 41.0% 39.9% 38.6% 41.5% 42.2%
Operating Margin 12.1% 13.3% 14.4% 14.7% 13.4% 10.1% 10.9% 9.8% 9.6% 9.1% 11.5% 11.7%
PBT Margin 6.9% 8.0% 10.2% 10.7% 10.0% 7.5% 7.8% 7.1% 7.8% 6.5% 7.8% 8.3%
Net Margin 5.3% 7.9% 7.7% 7.5% 6.5% 5.6% 3.3% 5.2% 6.0% 4.9% 5.8% 6.0%
Peers Median Ratios Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Sales Growth 14.05% 17.87% 3.31% 10.81% 6.31% 9.06% -5.01% -8.06% 33.24% 20.47%
Expenses Growth 14.15% 15.17% 3.92% 8.27% 11.15% 13.87% -0.63% -8.55% 37.75% 22.65%
EBITDA Growth 16.19% 23.69% 30.42% 7.99% 6.07% -2.76% -8.20% 21.33% 18.83% -3.10%
EBIT Growth 18.72% 34.55% 32.11% 10.84% -10.14% -1.32% -11.23% 26.77% 23.64% -6.39%
Net Profit Growth 8.62% 53.57% 27.57% 13.53% -9.84% 0.00% 10.92% 23.71% 23.95% -7.31%
Gross Margin 38.5% 41.0% 43.0% 49.5% 48.5% 48.0% 47.5% 51.0% 48.5% 44.0%
Operating Margin 10.0% 12.0% 16.0% 18.0% 17.0% 16.0% 13.0% 14.0% 16.0% 17.0%
Net Margin 4.7% 8.5% 9.8% 10.0% 8.2% 6.5% 9.1% 9.9% 10.3% 7.9%
Commentary
• The topline ratios of the company such as Revenue growth, Gross margin, EBIT growth are maintained above the median of the company.
Greenply has positive and healthy EBITDA and EBIT growth if compared with its peers. However, the company lags in terms of Sales growth,
Operating Margin and Net Margin by comparing to its peers.
• In FY23, the bottom-line ratios such as Pat, NP Margin, OP Margin have declined below the company median, due to subdued conditions,
but are performing better than its peers.
Efficiency Ratios Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Median Mean
Debtor Turnover 6.2x 5.0x 5.6x 5.3x 3.1x 4.8x 4.3x 4.2x 8.2x 8.9x 5.1x 5.6x
Inventory Days 126 80 58 69 151 77 81 99 93 93 87 93
Debtor Days 59 73 65 69 117 76 85 86 44 41 71 72
Inventory Turnover 2.9x 4.6x 6.3x 5.3x 2.4x 4.7x 4.5x 3.7x 3.9x 3.9x 4.2x 4.2x
Total Asset Turnover 61.3% 69.9% 70.1% 88.8% 249.4% 76.7% 67.2% 78.2% 73.9% 91.1% 75.3% 92.7%
Sales/Cap Employed 1.67 1.92 1.87 1.37 1.08 2.42 2.17 1.84 1.89 1.42 2 2
Debtor Turnover 8.5x 8.7x 8.7x 8.9x 8.1x 8.7x 9.5x 7.6x 9.2x 9.8x
Inventory Days 120 143 153 146 146 147 157 125 125 114
Debtor Days 45 44 42 42 49 43 39 49 40 38
Inventory Turnover 3.1x 2.6x 2.4x 2.5x 2.5x 2.5x 2.3x 2.9x 2.9x 3.2x
Total Asset Turnover 1.53 1.60 1.49 1.25 1.22 1.26 1.22 1.14 1.23 1.33
Sales/Cap Employed 2.51 2.67 2.34 1.91 1.72 1.78 1.65 1.44 1.60 1.67
Commentary
• In FY23, Debtors turnover of Greenply is above the company median as well as it is in line with its Peers median Debtors turnover ratio,
reflecting efficient collection tactics. Greenply’s Inventory turnover ratio is also performing better than the industry median of the same.
• However, when examining the Sales/Capital Employed ratio, Greenply demonstrates a lower ratio in comparison to the median ratio of its
peers. This discrepancy indicates a potential area for improvement in capital utilization and sales generation efficiency.

Leverage Ratios Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Median Mean
Debt/Equity 1.28 0.68 0.44 0.58 0.81 0.75 0.74 0.47 0.59 1.13 0.71 0.75
Debt/Assets 0.41 0.29 0.22 0.28 0.31 0.23 0.29 0.22 0.27 0.41 0.29 0.30
Debt/EBITDA 2.77 1.59 1.13 1.82 3.09 1.75 1.79 1.76 2.06 4.12 1.81 2.19
Debt/Capital 0.56 0.41 0.31 0.37 0.45 0.43 0.42 0.32 0.37 0.53 0.42 0.42
CFO/Debt 25% 56% 71% 48% 16% 39% 21% 112% 30% 9% 34.4% 42.7%
Debt Burden 0.02 0.31 0.45 -0.35 -0.3 0.06 0.01 1.03 -0.44 -0.5 0.02 0.03
Interest Coverage 3.3x 4.3x 6.2x 10.3x 5.8x 6.5x 6.2x 5.4x 10.3x 4.3x 6.0x 6.3x
Operating Leverage 0.76 3.00 2.85 -2.62 1.92 18.42 1.67 1.04 0.35 1.67 3.04
Financial Leverage 3.12 2.36 1.95 2.04 2.60 3.21 2.52 2.08 2.20 2.72 2.44 2.48
Debt/Equity 1.44 1.30 0.93 0.73 0.51 0.37 0.20 0.11 0.25 0.23
Debt/Assets 0.39 0.36 0.35 0.30 0.24 0.20 0.13 0.07 0.15 0.14
Debt/EBITDA 2.50 2.34 1.23 1.78 0.65 1.09 0.71 0.38 0.74 0.40
Debt/Capital 0.58 0.57 0.48 0.42 0.33 0.25 0.16 0.10 0.19 0.19
CFO/Debt 0.15 0.30 0.64 0.55 0.80 1.05 1.38 2.45 0.84 1.05
Debt Burden -0.02 0.065 0.18 0.05 0.13 0.39 0.83 1.805 0.07 0.28
Interest Coverage 1.8x 3.6x 4.0x 6.9x 9.3x 9.0x 10.7x 20.5x 18.6x 25.0x
Operating Leverage 2.84 2.11 1.14 5.81 1.60 -4.95 -0.16 3.30 -0.59
Financial Leverage 3.71 3.13 2.76 2.50 2.18 1.92 1.67 1.55 1.61 1.59
Commentary
• Greenply's elevated leverage ratios (Debt/Equity, Debt/EBITDA, Debt/Capital, Financial Leverage) surpass its peers, suggesting higher
financial risk. Additionally, its Interest Coverage ratio is significantly below the industry median, indicating potential challenges in meeting
debt obligations. The company can cover its interest expenses only for 4 yr. appx with its earnings as compared to Industry median of 25 yr.
Valuation Ratios Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Median Mean
Price/Earnings 6.2 15.4 14.1 22.8 28.3 20.1 20.4 34.1 24.29 18.68 20.25 20.43
Price/Book 1.24 3.93 2.93 3.69 3.58 4.80 2.54 4.78 4.29 2.64 3.64 3.44
Price/CashFlow 32.00 85.00 78.00 110.00 226.00 133.00 135.00 74.00 204 224 121.50 130.10
Price/Sales 0.33 1.22 1.09 1.71 3.44 1.14 0.68 1.79 1.48 0.92 1.18 1.38
Enterprise Value 725.00 1911.00 1800.00 2852.00 3140.00 1608.00 959.00 2082.00 2,308 1,699 1855.50 1908.40
EV/EBITDA 2.67 9.06 7.41 11.55 49.06 11.01 6.15 18.11 15.39 11.48 11.25 14.19
Price/Earnings 5.0 17.1 11.1 33.5 41.6 43.7 19.7 38.0 44.6 37.6
Price/Book 1.21 8.82 4.44 8.05 7.63 5.40 2.64 6.48 8.54 5.77
Price/CashFlow 40.00 185.50 28.50 317.00 399.00 321.00 291.00 129.50 331.00 412.50
Price/Sales 0.25 1.50 1.22 3.25 3.46 2.51 1.48 3.59 4.61 3.13
Enterprise Value 317.50 2565.00 1892.50 5678.50 7342.00 5403.00 3912.00 8248.50 15417.50 10079.00
EV/EBITDA 1.98 9.21 12.97 23.40 20.83 18.04 10.63 23.43 27.02 23.12
Commentary
• Greenply's P/E (Price-to-Earnings) and P/B (Price-to-Book) ratios are lower than the industry median. This suggests that the market values
Greenply's earnings and book value at a relatively lower level compared to the industry average, which may possibly indicate that
investors expect either lower growth prospects or higher risk associated with Greenply in comparison to the broader industry.
• The company has lower Price/Cash Flows, Price/Sales, and EV/EBITDA ratios, indicating a lower valuation compared to industry
benchmarks. This suggests that the investors value the company's cash flows, sales, and Enterprise value by EBITDA at a lower level,
reflecting a cautious assessment of its financial performance or growth potential. Such lower valuation means that the investors find
Greenply a bit riskier to invest than other companies in the industry.
• However, on the other side, it could present an opportunity for value investors who believe that the market is undervaluing Greenply's
sales and cash flows, possibly due to temporary factors or market sentiment.

ROIIC Profiling
Particular Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Income 57 120 117.6 124.2 128.3 123.2 118.2 74.7 47.7 63.3 94.7 91.4
Invested Capital 1053 1142 1318.84 810.19 849.32 1140.27 1556.14 564.67 646.53 511.66 775.06 1308.64
ROIIC 70.8% -1.4% -1.3% 10.5% -1.8% -1.2% 4.4% -33.0% -11.6% 11.9% -0.6%
Cumulative Net Income 57 177 294.6 418.8 547.1 670.3 788.5 863.2 910.9 974.2 1068.9 1160.3
Incremental Capital Deployed 89 176.84 -508.65 39.13 290.95 415.87 -991.47 81.86 -134.87 263.4 533.58
Reinvestment Rate 50.3% 60.0% -121.5% 7.2% 43.4% 52.7% -114.9% 9.0% -13.8% 24.6% 46.0%
Intrinsic Compounding rate 35.6% -0.8% 1.6% 0.7% -0.8% -0.6% -5.0% -3.0% 1.6% 2.9% -0.3%
ROIIC Profiling - Mar-12 to Mar- 23 • Over the 12-year period , the company achieved a ROIIC of 13.46%, which
suggests a reasonable efficiency in generating returns on capital reinvested.
Cumulative Net Income 1160.3 However, reinvestment rate of 22% raises concern as low level of capital is
Incremental Capital deployed 255.64 being efficiently reinvested in the company.
• The Intrinsic compounding rate of 3% suggest that company’s ability to
Reinvestment Rate 22.03% grow its intrinsic value is restricted. It can be due to lower ROIIC and lower
reinvestment rate. This says that Greenply may face challenges in deploying
capital to generate high returns.
ROIIC 13.46% • The 10yr stock price CAGR of 9.6% suggest reasonable long-term
appreciation, while 5yr CAGR of -11.4% indicate concerns about recent
Intrinsic Compounding rate 3.0% performance.
• The low Reinvestment rate may indicate limited growth opportunities,
capital constraints, or challenges in identifying projects with good returns.
Stock Price (10 Year CAGR) 9.26% The lower ROIIC than ROCE suggest that the company may face difficulties
Stock Price (5 Year CAGR) -11.40% in generating higher returns on the capital it reinvests.
Forensic Analysis
Key Findings:
Dealer Incentives and Audit Concerns:
The company's practice of providing incentives to dealers through various schemes is a key audit matter, as highlighted by the auditors. Due
to various schemes and a large variety of contractual terms across dealers, the computation of these incentives involves judgement. The
amount of such incentives is also significant.
Unaudited subsidiaries and Joint Ventures
The financial statements of four subsidiaries, including one step-down subsidiary, representing significant total assets, revenues, and net
cash outflows, have not been audited by the company's auditors. The financial statements of these subsidiaries and JV reflect total assets
(before consolidation adjustments) of Rs. 54,723.48 lakhs as of 31 March 2023, total revenues (before consolidation adjustments) of Rs.
32,598.07 lakhs and net cash outflows (before consolidation adjustments) amounting to Rs. 2,982.16 lakhs for the year ended on that date.
Additionally, the consolidated financial statements include the Group's share of net loss in two joint ventures, which also remains unaudited.
This lack of audit scrutiny raises transparency concerns regarding the financial health and performance of these entities.
Managerial Remuneration Breach
The company has reported a total managerial remuneration of INR 15.9 crores in FY23, exceeding the prescribed 11% limit of the net profit
as per Section 197 of the Companies Act, 2013. Further as per the act, the remuneration payable to anyone managing director or wholetime
director or manager shall not exceed 5% of the net profits of the company and if there are more than one such director remuneration shall
not exceed 10% of the net profits to all such directors and manager taken together.
Notably, the remuneration of Mr. Rajesh Mittal and Mr. Manoj Tulsian, totalling Rs. 12.75 crores, surpasses the allowable limit of Rs. 9.1
crores (10% of net profit).
Source: Annual Report FY2023


Relative Valuation
Amount in crores
Comparable Company
Valuation
Market Data Financials Valuation

Company Share Shares Equity Net Debt Enterprise Revenue EBITDA Net EV/Revenue EV/EBITDA P/E
Price Outstanding Value Value Income
Greenply 238.5 12.37 2950.25 725.15 3687.50 1981.22 141.95 61.84 1.86x 25.98x 47.71x
Greenpanel Industry 419.4 12.26 5141.84 -195.56 5015.13 1646.49 303.13 184.72 3.05x 16.54x 27.84x
Century Plyboard 798.4 22.22 17740.45 205.24 18176.85 3737.03 569.98 381.2 4.86x 31.89x 46.54x
Rushil Decor 386 2.65 1022.90 302.44 1326.79 821.66 112.58 46.54 1.61x 11.79x 21.98x
Archidply Industry 103.26 1.99 205.49 110.93 316.10 429.64 23.49 10.07 0.74x 13.46x 20.41x
Greenlam Industry 540.25 12.76 6893.59 933.12 7813.94 2156.19 268.77 145.9 3.62x 29.07x 47.25x
Kajaria Ceramics 1297.75 15.93 20673.16 -225.36 20319.37 4481.8 657.63 404.28 4.53x 30.90x 51.14x
High 4.86x 31.89x 51.14x

75th Percentile 4.08x 29.99x 47.48x
Average 2.90x 22.80x 37.55x
Median 3.05x 25.98x 46.54x
25th Percentile 1.74x 15.00x 24.91x
Greenply Comparable EV/Revenue EV/EBITDA P/E

Valuation
Implied Enterprise
Value 6034.70 3687.50 2152.79
Net Debt 725.15 725.15 725.15
Implied Market Value 5309.55 2962.35 2877.94
Shares Outstanding 12.37 12.37 12.37
Implied Value Per Share 429.23 239.48 232.65
Undervalued Undervalue Overvalued
Commentary
• To establish a benchmark, the median values of these ratios from the peer group was used. This approach will provide a balanced
comparison.
• The EV/Revenue ratio indicates that Greenply is undervalued relative to its peers. The implied value per share derived from this category
suggests that the market is not fully rewarding the company's revenue generation potential.
• The analysis using the EV/EBITDA ratio also depicts that Greenply is undervalued compared to its industry peers. The implied value per
share suggests that the investors may not be fully recognizing the company's EBITDA generation capabilities.
• On the other hand, the P/E ratio implies that Greenply is overvalued when compared to the median of its peers. The higher P/E ratio
suggests that the investors have priced Greenply at higher levels as compared to its peers in case of earnings growth.
Greenply Industries Ltd. appears to present an attractive opportunity, considering its undervaluation in terms of revenue and EBITDA
metrics. However, the overvaluation indicated by the P/E ratio suggests a cautious approach.

Peer Comparison
Peer Stock Performance (1Y) - Indexed
Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23
Greenply Century Plyboards Greenpanel Rushil Décor Kajaria Ceramics
Source: Yahoo Finance
Peers Financial Performance

Sr No. Name CMP Mktcap PEG P/E Debt Int Coverage EBITDA (%) ROCE ROE CFO/EBITDA
1 Greenply 236 2917 -8.9 55.0 757 2.5 7.2% 11.6% 14.1% 0.42
2 Century Plyboards 794 17641 2.4 46.3 483 25.4 15.3% 27.1% 22.8% 0.75
3 Greenpanel 382 4683 0.1 25.4 182 12.1 18.4% 27.2% 23.6% 0.81
4 Rushil Décor 375 995 1.1 21.4 308 3.1 13.7% 16.9% 23.9% 0.77
5 Kajaria Ceramics 1353 21544 6.0 53.8 168 22.3 14.7% 19.7% 15.8% 0.50
Source: Screener.in

Analyst Coverage Estimate
# Date Research House Price at Reco Type Target

1 26-Jul-23 ICICI Securities Limited 170.3 Buy 239
2 01-Jun-23 ICICI Securities Limited 156.25 Buy 229
3 06-Mar-23 IDBI Capital 138.7 Buy 171
4 15-Feb-23 ICICI Direct 142.45 Hold 155
5 14-Feb-23 ICICI Securities Limited 139.75 Buy 236
6 08-Nov-22 ICICI Securities Limited 171.15 Buy 266
7 08-Nov-22 BOB Capital Markets Ltd. 163.8 Buy 215
8 08-Nov-22 ICICI Direct 171.15 Hold 195
9 09-Aug-22 ICICI Securities Limited 179.5 Buy 254
10 08-Aug-22 BOB Capital Markets Ltd. 179.5 Buy 235
11 17-May-22 ICICI Direct 185.55 Hold 200
12 17-May-22 Yes Securities 176.65 Buy 237
13 16-May-22 BOB Capital Markets Ltd. 180.15 Buy 260
14 16-Feb-22 BOB Capital Markets Ltd. 198.55 Buy 260
15 15-Feb-22 ICICI Securities Limited 192.2 Hold 215
17 11-Nov-21 ICICI Securities Limited 232.3 Hold 250
18 06-Aug-21 BOB Capital Markets Ltd. 187.8 Hold 210
19 05-Aug-21 ICICI Securities Limited 187.8 Hold 215
20 16-Jun-21 ICICI Securities Limited 210.05 Hold 230
21 15-Jun-21 BOB Capital Markets Ltd. 210.05 Buy 230
22 19-Mar-21 BOB Capital Markets Ltd. 174.9 Buy 195
23 12-Feb-21 ICICI Securities Limited 164.4 Hold 180
25 08-Dec-20 BOB Capital Markets Ltd. 114.9 Buy 150
26 06-Nov-20 ICICI Securities Limited 88.2 Hold 95
27 05-Nov-20 BOB Capital Markets Ltd. 88.2 Buy 150
28 17-Sep-20 BOB Capital Markets Ltd. 91.65 Sell 70
29 17-Aug-20 Anand Rathi 91.4 Buy 110
Source: Trendlyne
Disclaimer: This is an academic project and is not meant for commercial usage.
This information/ document does not constitute an offer to sell or solicitation for the purchase or sale of any financial instrument or as an
official confirmation of any transaction. The information contained herein is obtained from publicly available data or other sources believed
to be reliable and the Author has not independently verified the accuracy and completeness of the said data and hence it should not be
relied upon as such.
Author is not SEBI registered investment analyst. This document is prepared as a part of academic project.
Investments in securities market are subject to market risk, read all the related documents, carefully before investing. The securities
quoted are for illustration only and are not recommendatory. Registration granted by SEBI, and certification from NISM is no way
guarantee performance of the intermediary or provide any assurance of returns to investors.

Atharva Belhekar - Greenply Industries

Uploaded by

Copyright:

Available Formats

Atharva Belhekar - Greenply Industries

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Atharva Belhekar - Greenply Industries

Uploaded by

Copyright:

Available Formats

Academic Research Project- Not a Recommendation

Equity Research Report

Greenply Industries Ltd

Global Economy Exhibit 2: Global GDP Projections (%)

These numbers help paint a clearer picture of the challenges and

Source: IMF WEO Source: IMF WEO, Company Analysis

Greenply Industries Ltd

challenges like a weaker rupee, high-interest rates, a global economic

downturn, and the impact of El Nino on crops might affect India's

Exhibit 5: Real estate Market Size (USD Billion)

Exhibit 6: Global Real Estate Universe in comparison (USD Trillion)

Greenply Industries Ltd

7.3% The demand drivers are rapid urbanisation, growing population,

Greenply Industries Ltd

The industry has been adapting to market trends, including the

Source: IBEF, Mordor Intelligence report Source: IBEF, Company Analysis

Greenply Industries Ltd

The global plywood market has seen consistent growth and is

This industry mainly produces engineered wood products, with

Greenply Industries Ltd

Medium-Density Fibreboard (MDF) is a versatile engineered wood 131.3

MDF has become preferred choice of furniture manufacturers

Greenply Industries Ltd

Product Overview Key features Utilities Types

Greenply Industries Ltd

Production: Manufacturing Facilities:

Plywood Manufacturing Facilities Capacity (Mn Sqm pa) Specifications

Plywood Domestic Partner Capacity (Mn Sqm pa) Specifications

Face Veneer Manufacturing Capacity Capacity (CBM pa) Specifications

MDF Manufacturing Capacity Capacity (CBM pa) Specifications

Exhibit 22: Number of Dealers

Plywood- Operating Metrics FY2023 FY2022

Production (million. Sq.m) 29.8 31.3

Greenply Industries Ltd

• Entry into high growth MDF segment and expansion into

Opportunities: Introduction of Green

Greenply Industries Ltd

Greenply Industries Ltd

q Raw Material Availability Concern: q Other Highlights:

Exhibit 23: Plywood Value Chain Analysis

Source: SMIFS Research

Greenply Industries Ltd

Greenply Industries Ltd

Committees of the Board

Greenply Industries Ltd

Yearly Shareholding pattern of company is as under:

Shareholder Name Holding (%)

Showan Investment Private Limited 37.74%

22.88% Rajesh Mittal on behalf of Trade Combines Partnership Firm 9.49%

12.22% 11.69% 10.90% 10.82%

Bandhan Hybrid Equity Fund 2.25%

Greenply Industries Ltd

Mean 138.23x 5.65 268.71 3.78%

Reven ue Growth Net P rofit Growth Growth in M anagerial R emuneration

Greenply Industries Ltd

Source: Screener.in, Consensus Estimate

Greenply Industries Ltd

Exhibit 30: Greenply vs Peers Revenue Growth

challenges, Gabon business faced political problems, and Bareilly -40.00%