Nuvama has maintained its ‘Buy’ rating on Greenlam Industries, but reduced the target price to ₹615, implying an upside potential of 11.9% from the current market price (CMP) of ₹549.50.
Key Takeaways from Management Meet:
- Particle Board Operations:
The particle board unit, scheduled to commence operations in Q3FY25, is projected to achieve 50% utilization by FY26E. - Earnings Revisions:
Nuvama has cut its EPS estimates for FY25E, FY26E, and FY27E by 16%, 12%, and 11%, respectively, acknowledging near-term challenges.
While the near-term outlook remains cautious, the brokerage believes Greenlam’s long-term growth prospects are intact, driven by strategic expansions and operational efficiencies.
Disclaimer: This article is based on a brokerage report and is for informational purposes only. It does not constitute financial advice. Investors should conduct their own research or consult a financial advisor before making investment decisions.