BSE:538979

Stock Analysis Report

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Executive Summary

Greenlam Industries Limited manufactures and sells laminates, decorative veneers, and their allied products in India and internationally.


Snowflake Analysis

Excellent balance sheet with solid track record.

Share Price & News

How has Greenlam Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 538979's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

538979

0.8%

IN Building

1.8%

IN Market


1 Year Return

-40.6%

538979

-39.6%

IN Building

-23.7%

IN Market

Return vs Industry: 538979 matched the Indian Building industry which returned -39.6% over the past year.

Return vs Market: 538979 underperformed the Indian Market which returned -23.7% over the past year.


Shareholder returns

538979IndustryMarket
7 Day0%0.8%1.8%
30 Day-2.3%-8.6%-0.5%
90 Day-40.8%-35.8%-22.2%
1 Year-40.0%-40.6%-37.1%-39.6%-22.2%-23.7%
3 Year-24.7%-25.8%-28.1%-32.5%-12.1%-16.8%
5 Year39.2%36.8%25.1%12.4%4.5%-5.7%

Price Volatility Vs. Market

How volatile is Greenlam Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 year ago | Simply Wall St

June Top Growth Stocks To Look Out For

1 year ago | Simply Wall St

June Top Growth Stocks To Look Out For

1 year ago | Simply Wall St

June Top Growth Stocks To Look Out For

Valuation

Is Greenlam Industries undervalued compared to its fair value and its price relative to the market?

15.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 538979 (₹561) is trading above our estimate of fair value (₹310.1)

Significantly Below Fair Value: 538979 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 538979 is poor value based on its PE Ratio (15.3x) compared to the Building industry average (8.1x).

PE vs Market: 538979 is poor value based on its PE Ratio (15.3x) compared to the Indian market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: 538979 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 538979 is overvalued based on its PB Ratio (3x) compared to the IN Building industry average (0.6x).


Next Steps

Future Growth

How is Greenlam Industries forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 538979's forecast earnings growth (13.2% per year) is above the savings rate (7.2%).

Earnings vs Market: 538979's earnings (13.2% per year) are forecast to grow slower than the Indian market (16.8% per year).

High Growth Earnings: 538979's earnings are forecast to grow, but not significantly.

Revenue vs Market: 538979's revenue (8.2% per year) is forecast to grow faster than the Indian market (7.2% per year).

High Growth Revenue: 538979's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 538979's Return on Equity is forecast to be low in 3 years time (17.9%).


Next Steps

Past Performance

How has Greenlam Industries performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 538979 has high quality earnings.

Growing Profit Margin: 538979's current net profit margins (6.5%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: 538979's earnings have grown significantly by 20.9% per year over the past 5 years.

Accelerating Growth: 538979's earnings growth over the past year (24.5%) exceeds its 5-year average (20.9% per year).

Earnings vs Industry: 538979 earnings growth over the past year (24.5%) exceeded the Building industry 1.2%.


Return on Equity

High ROE: 538979's Return on Equity (19.4%) is considered low.


Next Steps

Financial Health

How is Greenlam Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 538979's short term assets (₹5.8B) exceed its short term liabilities (₹4.0B).

Long Term Liabilities: 538979's short term assets (₹5.8B) exceed its long term liabilities (₹1.7B).


Debt to Equity History and Analysis

Debt Level: 538979's debt to equity ratio (57.6%) is considered high.

Reducing Debt: 538979's debt to equity ratio has reduced from 178.6% to 57.6% over the past 5 years.

Debt Coverage: 538979's debt is well covered by operating cash flow (35.2%).

Interest Coverage: 538979's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Greenlam Industries's current dividend yield, its reliability and sustainability?

0.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 538979's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.86%).

High Dividend: 538979's dividend (0.71%) is low compared to the top 25% of dividend payers in the Indian market (3.7%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 538979 has been paying a dividend for less than 10 years.

Growing Dividend: 538979's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.2%), 538979's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 538979's dividends in 3 years are forecast to be thoroughly covered by earnings (9.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Saurabh Mittal (44yo)

5.5yrs

Tenure

₹49,639,000

Compensation

Mr. Saurabh Mittal, B.Com has been Chief Executive Officer and Managing Director of Greenlam Industries Limited since November 2014. Mr. Mittal served as Chief Executive Officer and Joint Managing Director ...


CEO Compensation Analysis

Compensation vs Market: Saurabh's total compensation ($USD654.47K) is above average for companies of similar size in the Indian market ($USD339.81K).

Compensation vs Earnings: Saurabh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Saurabh Mittal
MD, CEO & Director5.5yrs₹49.64m13.29% 1.8b
Ashok Sharma
CFO & Chief Investor Relations Officer5.5yrs₹11.09mno data
Prakash Biswal
Company Secretary5.5yrs₹4.37mno data
Parul Mittal
Whole-Time Director5.5yrs₹27.69m1.98% 268.6m
Pankaj Rishi
Chief Operating Officer of Middle East & North Africano datano datano data
Uppaluri Sarma
President of Chip Board Manufacturing Engineering Servicesno datano datano data
Lokesh Dutt
Senior Vice President of International Exportsno datano datano data
Prashant Srivastava
Vice President of HRno datano datano data
Alex Joseph
Senior Vice President of Marketingno datano datano data
Shivaji Mohinta
Country Head Sales of Flooring & Decorative Veneers Verticalno data₹2.03mno data

5.5yrs

Average Tenure

50yo

Average Age

Experienced Management: 538979's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Saurabh Mittal
MD, CEO & Director5.5yrs₹49.64m13.29% 1.8b
Parul Mittal
Whole-Time Director5.5yrs₹27.69m1.98% 268.6m
Sandip Das
Independent Director0.92yrno datano data
Vijay Chopra
Non-Executive Independent Director5.58yrs₹1.36mno data
Sonali Dalal
Non-Executive Independent Director5.58yrs₹1.38mno data
Shiv Mittal
Non-Executive Chairmanno datano data2.1% 283.9m

5.6yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 538979's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Greenlam Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Greenlam Industries Limited
  • Ticker: 538979
  • Exchange: BSE
  • Founded: 2013
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: ₹13.541b
  • Shares outstanding: 24.14m
  • Website: https://www.greenlamindustries.com

Location

  • Greenlam Industries Limited
  • Worldmark 1
  • West Wing, 2nd Floor
  • New Delhi
  • Delhi
  • 110037
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
538979BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2015
GREENLAMNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2015

Biography

Greenlam Industries Limited manufactures and sells laminates, decorative veneers, and their allied products in India and internationally. The company operates through Laminate & Allied Products and Veneered & Allied Products segments. It offers laminates for homes, kitchens, offices, or other premises; decorative and designer laminates for kitchen, living room, office, or commercial spaces; compact laminates for restroom cubicles, lockers, furniture, panels, work tops, lab furniture, facades, etc.; and laminates for exterior and interior claddings. The company also offers melamine faced chip boards for interior and furniture industry. In addition, it provides decorative veneers for interiors; engineered wood flooring products; and engineered doors and door frames. The company offers its products under the Greenlam Laminates, New Mika, Decowood, Greenlam Sturdo, Greenlam Clads, Mikasa Floors, and Mikasa Doors & Frames brands. It serves institutions, and hospitality and health care sectors, and retail and fast food chains. The company sells its products through a network of distributors, dealers, and retailers. Greenlam Industries Limited was incorporated in 2013 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 13:25
End of Day Share Price2020/05/18 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.