Stock jumps 20% after its factory on full capacity could generate a revenue of ₹ 400 Cr

Shares of Greenlam Industries escalated 19.34% by Friday’s afternoon trades to reach a fresh 52-week high of ₹ 479.80 apiece. Its shares rallied by a massive 56.10% in the past month. 

This happened after its subsidiary HG Industries commenced production at a newly built manufacturing facility at Tindivanam, Tamil Nadu. It had expected the facility to commence commercial production of plywood & laminate by Q4FY23 and Particle Board by Q4FY24. 

Greenlam Industries manufactures laminates, decorative veneers and allied products, through its factories in Behror and Nalagarh. It imports raw materials for selling and sells its manufactured goods in both domestic and overseas markets. 

The company set up this greenfield project with an estimated investment of ₹ 125 crores. It said that its manufacturing facility has an installed capacity of 18.9 million square metres per annum and a potential to generate a revenue of ₹ 400 crores per annum at full capacity. This facility will manufacture plywood and allied products. 

Greenlam Industries is a small-cap company with a market capitalization of ₹ 5,106 crores. It has a return on equity of 15.83% and an ideal debt-to-equity ratio of 0.65. Its shares were trading at a price-to-earnings ratio of 40.00. 

The company’s promoters hold a 51.22% stake in it, followed by retail investors with 34.27%, mutual funds with 13.07% and foreign institutions with 1.44%. 

Written By Simran Bafna 

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