During Thursday’s trading session, the shares of one of the top 3 laminate manufacturers in the world surged nearly 5 percent to Rs. 540.15 on BSE, after the company announced incorporating a subsidiary in Bangladesh.
With a market capitalisation of Rs. 6,492.2 crores, the shares of Greenlam Industries Limited opened at Rs. 540.15, compared to its previous closing price of Rs. 514.75.
What’s the News:
According to the latest regulatory filings with the stock exchanges, Greenlam Industries Limited incorporated a subsidiary in Bangladesh on 25th September under the name of “Greenlam Overseas Bengal Limited”.
The subsidiary was established to carry out the business of distributor and wholesaler of high-pressure laminates and other paper/wood-based products.
About the Subsidiary:
Greenlam Overseas Bengal Limited operates within the industry of high-pressure laminates and other paper/wood-based products.
Greenlam Industries Limited has subscribed to 4,998 ordinary shares of Greenlam Overseas Bengal Limited, representing 99.9 percent of the share capital, amounting to 4,99,800 BDT (Bangladeshi Taka), which was paid in cash.
As this is a newly incorporated company, turnover and other relevant information are not available at this time.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 17.5 percent from Rs. 515 crores in Q1 FY24 to Rs. 605 crores in Q1 FY25.
However, its net profit fell during the same period, decreasing from Rs. 33 crores to Rs. 20 crores—a decline of nearly 40 percent—due to higher depreciation and interest costs for new projects.
In the laminate segment, Greenlam Industries experienced a value growth of 13.2 percent and a volume growth of 11.9 percent on a year-on-year basis, primarily driven by international sales.
On a year-on-year basis, the Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA decreased marginally from Rs. 64.4 crores in Q1 FY24 to Rs. 64 crores in Q1 FY25, registering a decline of 0.62 percent.
Additionally, the company’s EBITDA margins declined to 10.6 percent in Q1 FY25, down from 12.5 percent in Q1 FY24, largely due to higher operating expenses arising from lower revenues, lower gross margins, and higher employee costs.
Stock Performance
The stock has delivered positive returns of nearly 28.6 percent of returns in one year, but around 0.2 percent of negative returns in the last six months. So far in 2024, the shares of Greenlam Industries have given negative returns of about 6.3 percent.
About the Company:
Greenlam Industries Limited is engaged in the business of manufacturing of laminates, decorative veneers, engineered wooden Flooring, Doors & Plywood and allied products.
The company’s flagship brands are Greenlam Laminates, NewMika Laminates, Decowood Veneers, Mikasa Floors, Mikasa Doors & Frames and MikasaPly, and the manufactured goods are sold both in domestic and overseas markets.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
