Stocks to BUY: Shares of Greenpanel Industries, one of the country's leading companies making wood panels, may rise by up to 82 per cent from the current level. Domestic brokerage firm ICICI Securities has expressed this estimate in a report released after the company's September quarter results. Apart from this, BOB Capital Markets has also expressed the possibility of a strong rise in Greenpanel shares by about 62% in a report. Brokerage firms expect a rally in the stock at a time when it has lost about 11.71 per cent since the beginning of this year.

Made 1 lakh to 10 lakh in 3 years

However, in the last 3 years, Greenpanel Industries shares have given multibagger returns of around 921% to its investors. Shares of Greenpanel Industries closed at Rs 370.00, up 3.76% on the NSE on Monday, 28 November. The shares of Greenpanel Industries started trading on NSE for the first time on October 25, 2019, about 3 years ago. At that time the effective price of its shares was just Rs 36.55. In this way, the price of its shares has increased by Rs 333.45 or about 921% in the last 3 years.

This means that if an investor had invested Rs 1 lakh in Greenpanel Industries shares on October 25, 2019 and held that investment till date, then the value of his Rs 1 lakh would have increased by 921% to Rs 10.21 lakh today. Would have been

ICICI Securities view on the stock

ICICI Securities said, "Increasing costs have put pressure on Greenpanel Industries' margins in the September quarter." 4.6 billion. This led to a growth of 1.3% and 4.5% in its EBITDA and profit, respectively, in the first half.

The brokerage firm further said, "Its MDF sales declined in the September quarter due to a decline in exports. However, the company's management has projected a 12% year-on-year growth in FY23. The company's Andhra Pradesh plant FY23 Expected to be commissioned in Q1, the company is expected to grow its volumes by 12-13% over FY2022 to FY27.

ICICI Securities has given a target of Rs 668.

The brokerage said that we believe that the stock is currently trading at reasonable valuations and this may be a good time for long-term investors to take a position. We maintain our BUY rating on the stock with a target price of Rs 668. This is about 81.62 per cent higher than the current market price of Greenpanel shares.

BOB Capital also maintains 'Buy' rating

BOB Capital Markets also maintained 'BUY' rating on Greenpanel Industries with a target price of Rs 595 in its report released after the company's September results. About 61.77 percent more than the current price of Greenpanel Industries.

About the company

Greenpanel Industries, with a market cap of around ?4,580 Crore, is in the business of manufacturing high quality Medium Density Fiberboard (MDF), Plywood, Decorative Veneer, Flooring and Doors. It is the largest manufacturer of MDF in Asia and India. The company's net profit for the June 2022 quarter stood at Rs 76.1 crore, as against Rs 28.6 crore in the corresponding quarter of the previous fiscal. At the same time, the company's total revenue stood at Rs 471.2 crore in the June quarter, as against Rs 308.7 crore in the corresponding quarter of the previous financial year.

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