Choice Institutional Equities Initiates Coverage on Greenply Industries, Recommends Buy with Target Price of Rs 355

Greenply Industries Maintains Strong Growth Outlook

Choice Institutional Equities has released a report on Greenply Industries, highlighting the company's positive outlook for the fiscal year 2027. Greenply Industries, commonly referred to as MTLM, is expected to continue experiencing healthy volume growth across its plywood and medium-density fiberboard (MDF) segments.

According to the report, MTLM is guiding for higher leverage in the near term to support expansion while maintaining a stable long-term balance sheet. The company's core plywood demand remains subdued, but is supported by continued market share gains from organized players. In contrast, the MDF segment continues to outperform, driven by robust industry growth and stronger margin and volume guidance. Additionally, MTLM's new growth drivers, such as PVC doors and windows, and the furniture hardware joint venture, are in scale-up mode and are expected to improve profitability over the medium term as utilization ramps up and domestic manufacturing expands.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The report maintains a BUY rating on MTLM with a revised target price of INR 355 per share. This revised target price is unchanged from the previous estimate, reflecting the analyst's confidence in the company's growth prospects. The analyst has also increased its estimates for EBITDA and profit after tax (PAT) growth for fiscal year 2027 and 2028, respectively.