homebusiness Newscompanies NewsWoodpanel stocks like Greenpanel, Greenlam gain upto 10% as analysts see large market potential
Woodpanel stocks like Greenpanel, Greenlam gain upto 10% as analysts see large market potential
DAM Capital has initiated coverage on both Greenpanel and Greenlam Industries, while maintaining its buy recommendation on its peers - Greenply Industries and Century Plyboards.
Shares of Woodpanel players like Greenpanel Industries and Greenlam Industries gained up to 10 percent on Tuesday after DAM Capital said that players in this industry have a large market potential.
DAM Capital said that shortage of timber have driven key wood prices higher and that the lukewarm demand post the price hikes means that raw material inflation pass-through is getting difficult.
The brokerage further noted that the imports of Medium Density Fiberboards (MDF) and Particle Board (PB) have shot up recently, adding that domestic MDF capacity is likely to rise by nearly 50 percent over financial year 2023-2025.
DAM Capital has initiated coverage on both Greenpanel and Greenlam Industries, while maintaining its buy recommendation on its peers - Greenply Industries and Century Plyboards.
DAM Capital observed that there is a large potential market available for the players and that the market share of leaders also does not exceed 20 percent of the overall market. The note said that the balance sheet of these players is fairly strong from pre-Covid times.
Share of a highly unorganized industry is up for grabs, the brokerage said.
Meanwhile, Century Plyboards told CNBC-TV18 that the demand is slightly muted currently.
The company’s market share is around 7 percent and it has been gaining market share in Plywoods steadily.
It also said that there is a strong case for anti-dumping duty on MDF. India’s MDF capacity stands at 2.5 million cbm as against China’s more than 50 million cbm.
Shares of Greenpanel Industries are trading 7.5 percent higher, while those of Greenlam Industries are trading 4.2 percent higher.
First Published: Jun 27, 2023 2:19 PM IST
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