Nuvama has revised its target price for Greenlam Industries to ₹615, reflecting a cautious stance on near-term challenges despite the company’s long-term growth potential. In its latest report, the brokerage highlighted key takeaways from its interaction with Greenlam’s management. The company reiterated its ambitious 18–20% overall growth guidance for FY25, driven by strategic initiatives and market opportunities.
Greenlam sees significant potential to expand its market share in both domestic and export markets, positioning itself as a leading player in the laminates segment. In the plywood segment, the company expects to break even at 35–40% utilization by FY26, showcasing its efforts toward efficiency and cost management. Additionally, the particle board operations, set to commence in Q3FY25, are projected to achieve 50% utilization by FY26.
However, acknowledging current headwinds, Nuvama has cut its FY25E/26E/27E EPS estimates by 16%/12%/11%, citing challenges in scaling up operations and margin pressures. The brokerage remains optimistic about Greenlam’s long-term prospects but believes the near-term hurdles warrant a cautious valuation.
This revised target reflects a balanced approach to Greenlam’s potential and existing challenges.
