The shares of one of the Smallcap stocks specializing in the manufacturing of interior products, jumped 4 percent following commencement of commercial production of Chipboard at its manufacturing facility located in Naidupeta, Andhra Pradesh
Price action
With a market capitalization of Rs. 7,197.72 crores on Friday, the shares of Greenlam Industries Limited trading at Rs. 572 jumped 3.8 percent, making a high of Rs. 588.70 per share compared to its previous closing price of Rs. 567.50 per share.
What Happened
Greenlam Industries Limited specializing in the manufacturing of interior products has commenced the commercial production of Chipboard at its new facility in Naidupeta, Andhra Pradesh, starting from January 23, 2025.
The facility has an annual production capacity of 2,92,380 cubic meters and is expected to generate revenue of up to Rs. 750 Crores upon full capacity utilization. The total capital investment for the project stands at approximately Rs. 735 Crores. The prelaminated chipboard produced will be marketed under the Greenlam brand name.
About the company
Greenlam Industries Limited is a leading Indian company specializing in the manufacturing and distribution of decorative laminates, veneers, and other interior products. Established in 1990, the company operates under brands like Greenlam, Greenlam Essences, and Decolan, offering a wide range of innovative and sustainable products for the residential and commercial segments.
Segment Revenue (Q2 FY25)
The company’s Laminates & Allied Segment has generated Revenue of Rs. 596.9 crores in Q2FY25 and Veneers & Allied Segment has generated Rs. 57.9 crores and at the end Plywood & Allied Segment has generated Rs. 26 crores in the same period.
Financials
The company’s total revenue rose by 13.05 percent from Rs 609.46 crore to Rs 688.97 crore in Q2FY24-25. Meanwhile, Net profit declined from Rs. 39.03 crores to Rs 34.62 crore during the same period.
Written by Sridhar J
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