Greenpanel Industries Share Price

Greenpanel Industries Ltd is India’s largest wood panel manufacturer offering medium-density fibreboard, plywood and flooring as its key products.

Apart from supplying its products domestically, Greenpanel also exports to 12 countries (majorly to the UAE and Southeast Asian countries). It enjoys a leadership position with a 27% market share in the organised medium-density fibreboard segment in India.

The company has a network of over 2,300 distributors in India, with over 12,000 retailers selling its products.

The company’s manufacturing units are located at Rudrapur in Uttarakhand and Tirupati in Andhra Pradesh with a combined annual capacity of 660,000 cubic metres (CBM). Greenpanel’s manufacturing facility in Tirupati is Asia’s largest medium-density fibreboard (MDF) plant, spanning across 200 acres.

During 2022-23, Greenpanel announced the commissioning of a new MDF plant at its existing manufacturing unit in Andhra Pradesh with an additional installed capacity of 231,000 CBM per annum. The additional capacity will increase MDF production capacity of the company by 35% to 891,000 CBM per annum. The commercial production of the plant is expected to begin in the first quarter of 2024-25.

Greenpanel Industries operated earlier as a wholly owned subsidiary of Greenply Industries Ltd. In 2018, Greenply decided to demerge its medium-density fibreboard business. The demerged entity was named Greenpanel Industries and was listed on exchanges on October 23, 2019.

As of January 4, 2024, Greenpanel Industries’ market capitalisation stood at over ₹5,200 crore. Greenpanel share price has surged over 230% in the past three years.

Business operations

Greenpanel’s leading segment is its MDF business that accounted for 86% of its revenue in 2022-23. The plywood business contributed the remaining 14% to the company’s revenue.

MDF segment:

The company’s medium-density fibreboard product range includes interior grade, exterior grade, club grade, pre-laminated, carb and E-1 and fire-resistant MDF.

This segment also includes different products available for residential and various commercial flooring applications. There are two collections in this range – the Prima collection and the Personal collection. The company sells decorative doors and commercial doors. Decorative doors are available in three variants – natural teak doors, laminated doors and natural veneer doors.

Plywood segment:

The company has a 4% share of the organised plywood market in India. Greenpanel manufactures premium grade plywood with its product range including club grade, BWP grade, MR grade and G Pro grade plywood.

Financial highlights

Greenpanel Industries did not have a smooth run in 2022-23 as the company witnessed a steep increase in its raw material cost. On top of that, domestic sales volumes were hit, both in the MDF and plywood segments. Though, higher exports compensated for some of the decline in domestic sales volume during the year. The company’s consolidated revenue stood at ₹1,778.55 crore in FY23, up 12.16% from ₹1,585.74 crore in FY22. Greenpanel’s EBITDA was down 0.8% to ₹435.87 crore in FY23 compared with ₹439.39 crore in FY22. EBITDA margins fell 320 basis points to 24.51% in FY23 compared with 27.71% in FY22. The profit after tax (PAT) stood at ₹256.51 crore in FY23, up 6.67% from ₹240.47 crore in FY22.