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Home / Markets / Stock Markets /  This multibagger stock surges 12% today. Anand Rathi has 'Buy' tag post Q3 results
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Shares of Greenlam Industries surged over 12% to 384 apiece on the BSE in Friday's deals, on record date of its stock split in the ratio of 5:1. Brokerage house Anand Rathi has a Buy rating on the multibagger stock post its Q3 results as it likes Greenlam for its bright business prospects, and lean, healthy and strong balance sheet.

The brokerage firm's Buy tag comes with a target price of 474 per share. “We believe the company would deliver revenue/EBITDA/adjusted earnings Compound annual growth rates (CAGRs) of 21%/22.9%/24% over FY21-24 due to the robust business environment and stable input costs, which are likely to cool off in future," it added.

Greenlam Industries’ revenue during the third quarter grew 24.4% year-on-year (YoY), however, its earnings before interest, taxes, depreciation, and amortization (EBITDA) and net profit were down 7.9% and 15.8% from the year-ago quarter respectively. 

“The performance was affected by i) the Behror plant shutdown and ii) volatile raw material prices, cutting into margins. The revenue grew on higher realisations and expansion projects on schedule," the note highlighted.

Environmental issues led to a temporary shutdown of its Behror plant, completely shut from 10th to 16th Dec; then for the rest Dec’21 and in Jan’22 with restrictions (lifted from 4th Feb). The management said that around 400m-500m in sales were lost as a result.

Greenlam Industries is engaged in laminate manufacturing for different commercial and residential applications. The company fixed February 11, 2022 as the 'Record Date' for sub-division/split of face value of the equity shares of the company from face value of Rs. 5/- per share to face value of Re. 1/- per share. The stock has been quoting on an ex-split basis from Thursday, February 10, 2022.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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