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Greenply vs Greenpanel: A Clash of Plywood and MDF Giants!About Companies Greenply Industries NSE:GREENPLY is a prominent player in the plywood industry, dedicated to the production and trade of plywood and its associated products. Their extensive range features plywood, block board, wood flooring, medium density fiberboard, flush doors, and decorative veneers. Founded in 1984 by Shiv Prakash Mittal, the company operates out of Kolkata, India. In 2018, Greenpanel Industries NSE:GREENPANEL emerged as a separate entity from Greenply Industries, concentrating on the manufacturing of MDF boards and related products. Their product lineup includes wood flooring, veneers, flush doors, and more. Market Capitalization ● Greenply Industries - ₹ 4,751 Cr. ● Greenpanel Industries - ₹ 4,849 Cr. Technical Aspects Greenply ● The monthly chart reveals that the stock price encountered significant resistance around the 340 mark, resulting in a sharp decline that brought it down to the 70 level, where it found support. ● After an extented phase of consolidation, the stock formed a Double Bottom pattern. ● Once this pattern broke out, the price surged upward, and nearly 6.5 years later, in July 2024, the stock successfully broke through the previous resistance zone. ● Having maintained its position above this breakout level, the stock price is poised for further gains. Greenpanel ● After reaching a remarkable high close to 625, the stock faced a considerable downturn. ● It later found a solid support at the 260 level, which set the stage for its recovery. ● Nevertheless, the stock ran into resistance around the 430 mark, caused another retreat to the previous support zone. ● Currently, with a fresh upward trend, the price exhibits significant growth potential. Revenue Breakdown ● Greenply Industries generates a remarkable 77.4% of its total revenue from plywood and associated products, establishing itself as a dominant player with a 26% market share in the domestic plywood sector. ● In contrast, Greenpanel Industries focuses heavily on MDF boards, which make up an astounding 91% of its total sales, securing a 21% market share in the domestic MDF industry. Sales & Profit Analysis ● Greenply ➖ In the last three years, this company has experienced an impressive compounded annual growth rate of 23% in sales. ➖ However, profit growth has been modest, increased by only 3% during the same period. ➖ The company currently holds an operating profit margin of 9%, which is deemed acceptable. ➖ In the fiscal year 2024, earnings per share have dropped to 5.44, down from 7.44 in FY2023. ● Greenpanel ➖ Over the past three years, this company has achieved a compounded annual growth rate of 15% in sales. ➖ In contrast, profit growth has been exceptional, soaring at a 26% CAGR during the same period. ➖ Currently, the company boasts an operating profit margin of 16%, a noteworthy figure. ➖ However, in fiscal year 2024, earnings per share have declined to 11.64, down from 20.92 in FY2023. Valuation ● P/E Ratio ➖ Greenply Industries currently has a price-to-earnings (PE) ratio of 48.75, which is marginally above its 1-year median PE of 48.1, yet it aligns closely with the industry average PE of 48.75. ➖ On the other hand, Greenpanel Industries shows a current PE of 33.94, indicating it may be overvalued relative to its 1-year median PE of 25.2, but it appears undervalued when compared to the industry PE of 48.75. ● P/B Ratio ➖ Greenply has a PB ratio of 6.69, suggesting it is considerably overvalued. ➖ However, Greenpanel Industries has a PB ratio of 3.68, which, although somewhat high, does not indicate overvaluation. ● Intrinsic Value ● Greenply is presently valued at ₹984, a figure that is approximately 2.4 times its intrinsic worth of ₹158. This suggests that the stock is currently overvalued. ● Conversely, Greenpanel has a market price of ₹395, roughly 1.5 times its intrinsic value of ₹259, which similarly indicates that this stock is also overvalued at this time. Product Demand analysis (Plywood vs MDF) ● Greenply presently has an inventory turnover ratio of 4.2, an improvement from 3.96 three years ago. ● In comparison, Greenpanel Industries shines with a current inventory turnover ratio of 5.08, a substantial increase from 3.71 three years earlier. ● These figures clearly indicate a rising demand for MDF products, highlighting a promising trend in the market. Company Capex ● Greenply has significantly reduced its capital expenditure, slashing it to 123 crore from last year's 412 crore, indicating a lack of a robust capex program. ● In contrast, Greenpanel has made a remarkable leap in its capital investments, raising its capex to 344 crore from just 80 crore in the previous financial year. Debt Analysis ● Greenpanel Industries stands strong with a manageable debt of 296 crores and a favorable debt to equity ratio of 0.22, indicating that debt is not a concern for the company. With an impressive interest coverage ratio of 16, Greenpanel is well-equipped to handle its loan repayments without any issues. ● Other side, Greenply Industries carries a higher debt burden of 549 crores, reflected in a debt to equity ratio of 0.77. With an interest coverage ratio of only 3.33, the company may face challenges in meeting its loan repayment obligations. Cashflow Analysis ● Greenply has experienced an impressive increase in its operating cash flow, jumping to 111 crore from a mere 62 crore in FY23. ● Greenpanel Industries has struggled to convert its profits into cash, with its operating cash flow declined significantly to 135 crore from 337 crore in FY2023. Shareholding Pattern ● Greenply ➖ Foreign Institutional Investors (FIIs) are dramatically raising their investments. In the latest June quarter, their stake has surged to 4.91%, a notable increase from just 2.15% in June 2023. ➖ Meanwhile, Domestic Institutional Investors (DIIs) currently hold 30.33% as of the June quarter, down from 32.41% last year. ● Greenpanel ➖ Foreign Institutional Investors (FIIs) are consistently divesting their positions in this stock, with their current ownership now at a mere 2.12%, a significant drop from 4.3% a year ago ➖ In contrast, Domestic Institutional Investors (DIIs) are steadily boosting their investments, with their current stake rising to 26.71%, up from 21.60% in June 2023. Some Important Facts ● Shifting Demand From Plywood to MDF ➖ Worldwide, the consumption ratio of MDF to plywood stands at 80:20; however, in India, this ratio is notably reversed, with plywood dominating at 20:80 as of 2022. ➖ Industry experts predict that by 2030, this ratio in India will shift to an even 50:50. ➖ This shift indicates significant growth opportunities for the MDF sector in India, particularly as it is poised to capture a larger share of the low and medium-grade plywood market, which currently makes up 85% of the plywood industry in the country. MDF Industry Growth Drivers ● Growth of Online Home Décor Platforms ➖ The growth of online home décor platforms like Pepper Fry, Fab Furbish, and Urban Ladder has increased the need for ready-to-assemble (RTA) furniture, impacting the MDF industry directly. ● Reduction in Furniture Cycle Time ➖ The increasing popularity of stylish, comfortable furniture crafted from MDF has significantly reduced the home renovation timeline, slashing it from the previous 15 to 20 years down to just 7 to 8 years. ● Cost Advantage Over Plywood ➖ MDF is much cheaper than plywood because it is made from leftover wood materials, both hardwood and softwood. Conclusion ➖ After examining all the factors, it appears that the MDF industry is poised for significant growth in the near future, outpacing the Plywood sector. As a result, companies such as Greenpanel Industries are likely to reap substantial benefits, which will have a direct positive effect on their share prices.
NSE:GREENPANELLong
by GoodluckCapital
2
A contender to do 10x-15x from CMP in next 2-3 Years.Technical Analysis : Notes on Chart, Price is in Uptrend for the First time since its inception in 2008, 15 years ago. Fundamental Analysis : I would say Average or below average FA for an investment. As Cash Flow does not look, Company got positive results only from last 2 years. P/E ratio is high around 140 but in small caps usually it is the case. But the Solvency Ratio looks good and so Assets are good for long and short term both copared to Liabilities. Next Results are in November and would be a good time to re-evaluate the position. Just from the view of Fundamentals, Its not a screaming buy or more opportunities can be looked, But from the prespective of Technical Analysis a small risk is worth in it. TA wise the Signal is "BUY" Considering the Position may see drawdown of 50-60% also, Be wise to manage Risk Management for this Investment. #DYOR for more. 👍 #Positional / #Long_Term
NSE:SEPCLong
by holdwithPriyank
5
Angleone is destined to stage a comeback!Technical Analysis (Weekly Timeframe) ● The stock had previously consolidated and established a Rounding Bottom pattern. ● Following the breakout, the price surged, hitting an impressive all-time high of 3,880. ● However, it then began to decline, ultimately dropping to the support level around 2,000. ● A robust rebound from this support, accompanied by significant volume, indicates that the stock is poised for another upward movement. ● The potential targets to watch for are: ➖ 1st Target - 3,400 level ➖ 2nd Target - 3,880 level. Technical Analysis (Daily Timeframe) ● The daily chart reveals that following the breakout from the Falling Wedge pattern, the price is currently in a consolidation phase, poised for a significant upward movement. ● The trading volume has surged notably in recent days, signalling that big market participants are showing keen interest. Technical Indicators (Daily Timeframe) RSI ● Current RSI of this stock is 61.37, which indicates the strength of buyers. MACD ● MACD line has crossed over the signal line from the below, indicates a robust bullish momentum is in play. ADX & DI ● ADX value surpassing 20 with +DI positioned above the -DI, indicates the strength of the trend.
NSE:ANGELONELong
by GoodluckCapital
TCS BULLISH BREAKOUT ON DAILY BASISTCS IS BULLISH IN THE chart and can be seen for more up trend 4632 reversal from 4432 can be support for the tcs. target for upside can be 4632, 4955 in coming future. stoploss can be 4363 those who are entering after reversal from 4432 so after breakout of 4565 can be upside more promising. #tcs #itsectorstocks #stocksinthenews #indianstocks #indianstockmarket #bullishstocks #august2024 #recentstocks #stocksintrend #uptrendstocks #uptrend
NSE:TCSLong
by dhavalmalvania
1
Dixon & Bajaj-Auto Showing High Rise in Future OIDIXON Following a significant upward trend, the stock price experienced a correction and later established a Double Bottom pattern. Recently, a breakout occurred, backed by strong volume, suggesting that the price is set for further gains. Additionally, a notable increase in future open interest—nearly 11%—has been recorded. This rise in both stock price and future open interest signals that big investors are optimistic about this stock. As long as the price remains above the 12,900 level, the overall sentiment is likely to stay positive. BAJAJ-AUTO During the upward movement, the price experienced a brief consolidation phase, resulted in the formation of a Rounding Bottom pattern. Recently, a breakout occurred, supported by significant volume, suggested that the stock price is poised to maintain its upward trajectory. Moreover, there has been a remarkable surge in future open interest, climbed nearly 19%. This increase in both the stock price and future open interest indicates that big investors are bullish about this stock. As long as the price remains above the 10,000 level, the overall sentiment is likely to stay positive.
NSE:BAJAJ_AUTOLong
by GoodluckCapital
1
BPCL Trade Analysis for Buy using Wyckoff method.Wyckoff Story Prior to trading range we were in uptrend and then we have Stoping action and CHoCH (Change of character). Let’s assume our bias is accumulation based on CHoCH as we don’t see lot of supply in the CHoCH. Down wave Analysis We can see that the volatility of the down wave is decreasing from Phase A to Phase D, confirming the accumulation Bias. Volume Analysis In Phase B we see increase in supply but the price is not able to go below the trading range, lot of effort to push the price down but fails, indicating effort vs result is not synced. Confirming the accumulation bias. We have supply decrease from Phase A to Phase C indicating supply is being absorbed. Sign of Strength we have Major sign of strength in phase D with good demand volume indicating institutions are present in buying. Final View Bullish on stock with entry marked on the chart
NSE:BPCLLong
by ksujit08
COALINDIA Trade Analysis for Buy using Wyckoff method.Wyckoff Story Prior to trading range we were in uptrend and then we have Stoping action and CHoCH (Change of character). Let’s assume our bias is accumulation based on CHoCH as we don’t see lot of supply in the CHoCH. Down wave Analysis We can see that the volatility of the down wave is decreasing from Phase A to Phase D, confirming the accumulation Bias. Volume Analysis In Phase B we see increase in supply but the price is not able to go below the trading range, lot of effort to push the price down but fails, indicating effort vs result is not synced. Confirming the accumulation bias. We have supply decrease from Phase A to Phase C indicating supply is being absorbed. Sign of Strength we have Major sign of strength in phase D with good demand volume indicating institutions are present in buying. Final View Bullish on stock with entry marked on the chart
NSE:COALINDIALong
by ksujit08
ANDHRA SUGARS By KRS ChartsDate: 22nd Aug 2024 Time: 9:30 AM Why Andhra Sugars ❓❓ 1. In Bigger TF, it is making Higher Highs and Higher Lows so All over Bullish Stock from Sugar Sector . 2. Recent Lows in April 24 and Jun 24 was inside 0.5 to 0.618 Fibonacci zone which is known for reversal zone and successfully sustain above those lows. 👍 3. On 10th Jun its Gap Up and Breaks the trendline with successful retest with today's move 🎇 Near possible Target is ATH price point 177 RS. with SL of 94 Rs.
NSE:ANDHRSUGARLong
by KRSCharts
3
SHYAMMETL & RPSGVENT - Cup & Handle Breakout!!SHYAMMETL Following an upward trend, the stock price encountered resistance around the 740 level, resulting in a correction that brought the price down to the 530 level, where it established support. Subsequently, the price entered a consolidation phase before successfully breaking through its trendline resistance. With a surge, the stock price climbed back to its previous resistance level but faced rejection once more. After a period of consolidation just below this resistance level, the price ultimately broke out with significant volume support. During this time, a cup & handle pattern emerged, and with this breakout, that pattern was also surpassed. If the price can hold above this breakout point, we could witness another rally in the days ahead. RPSGVENT After a tough rejection around the 840 level, the price started to decline. Once it successfully broke through the trendline resistance, the stock price jumped back to its earlier resistance level but was rejected again. After a period of consolidation just beneath that resistance level, the price has finally made a breakthrough recently, supported by substantial volume. A cup and handle pattern formed during this period, and with the breakout, that pattern was also exceeded. If the price remains above this breakout level, there could be more upward movement.
NSE:SHYAMMETLLong
by GoodluckCapital
BALRAMCHINI & MPHASIS Showing High Rise in Future OIBalrampur Chini The stock price saw a notable decline after dropping beneath the Rising Wedge pattern. Subsequently, it entered an extended phase of consolidation, during which it formed an Inverted Head and Shoulders pattern. After the breakout, the price surged initially but then experienced a short consolidation period before breaking out again. This movement also shows a breakout from the Rounding Bottom pattern, which is allowing the stock price to go up even higher. Mphasis The stock price is currently in a strong consolidation phase. The chart shows that an Inverted Head & Shoulder pattern is developing, suggesting that this phase might end soon and the price could rise after a major breakout. To see an upward movement, the price needs to break through the 3,100 level and stay above it.
NSE:BALRAMCHINLong
by GoodluckCapital
Federal Bank vs Karur Vysya Bank: Which is the bettr investment?The Bank Nifty NSE:BANKNIFTY stands at the 50,500 level, reflecting a decline of approximately 5.3% from its all-time high. When evaluating private banks, HDFC NSE:HDFCBANK , Axis NSE:AXISBANK , ICICI NSE:ICICIBANK , and Kotak Mahindra NSE:KOTAKBANK typically emerge as top contenders for investment. However, in the mid to small-cap arena, Federal Bank and Karur Vysya Bank have shown remarkable resilience and performance over the past few months, outpacing the broader banking sector. Let’s delve into some crucial factors that can guide us in determining the most promising investment opportunity at this moment! Market Capitalization ● Federal Bank NSE:FEDERALBNK - ₹ 49,883 Cr. ● Karur Vysya Bank NSE:KARURVYSYA - ₹ 17,459 Cr. Relative Strength ● The chart clearly illustrates that the Bank Nifty has delivered an impressive return on investment of approximately 15% over the past year. However, Federal Bank and Karur Vysya Bank have far surpassed this figure, achieving remarkable returns of around 54% and 82%, respectively. This indicates that these two banks are currently excelling far beyond the overall bank index. Cost of Liabilities ● The liabilities cost for Karur Vysya Bank is at 4.8%, notably lower than Federal Bank's 5.14%. This indicates that Karur Vysya Bank has a greater ability to secure funds compared to Federal Bank. CASA Ratio ● The CASA ratio, which measures the proportion of deposits in current and savings accounts to total deposits, is a crucial indicator for banks. A higher CASA ratio signifies a reduced cost of funds, as banks typically do not pay interest on current account deposits, and the interest rates on savings accounts are generally quite low, around 3-4%. ● In this instance, the CASA ratios stand at 30.39% for Karur Vysya Bank and 29.56% for Federal Bank, highlighting Karur Vysya Bank's superior position over Federal Bank. Non-performing Asset (NPA) Analysis ● Over the past four years, the net non-performing assets (NPA) for these two banks have seen a remarkable decline. ● In the latest quarter, Karur Vysya Bank reports a net NPA of just 0.4, while Federal Bank follows closely with a net NPA of 0.6. Total Provisions ● Discussing the NPA without considering the overall provisions presents an incomplete picture. Both banks have experienced a notable decline in this crucial factor. ● For Federal Bank, the total provisioning for FY24 is only 196 crore, a stark reduction from 750 crore in FY23. Similarly, Karur Vysya Bank's total provisioning for FY24 stands at 728 crore, down from 1,039 crore in FY23. Net Interest Margins (NIM) ● Karur Vysya Bank boasts a superior net interest margin (NIM) of 3.75, significantly outpacing the Federal Bank's NIM of 2.87. ● A NIM below 3 is generally viewed as unfavorable for banks. highlighting the strength of Karur Vysya Bank in this key metric. Advances Growth (%) Analysis ● An increase in advances growth signifies a bank's ability to efficiently provide loans. The 20.4% rise in advances for Federal Bank surpasses the 16.68% growth seen at Karur Vysya Bank, showcasing a more robust lending capability. Valuation ● PE Ratio ➖Federal Bank's current price-to-earnings (PE) ratio is 12.4, which exceeds its 1-year median PE of 9.0. Compared to the industry average PE of 11.83, this suggests that the stock is not excessively overvalued. ➖On the other hand, Karur Vysya Bank has a current PE of 10.2, which is marginally above its 1-year median PE of 9.8. Given the industry PE of 11.83, this indicates that Karur Vysya Bank is significantly undervalued. ➖When analyzing the PE ratios, it becomes clear that Karur Vysya Bank holds a more advantageous position. ● Intrinsic Value ➖The Federal Bank is currently trading at ₹204, while its intrinsic value stands at ₹228, indicating that the stock is undeniably undervalued at this time. ➖On the other hand, Karur Vysya Bank's market price is ₹217, but with an intrinsic value of only ₹146, it clearly shows that the stock is currently overvalued. Technical Aspects ● From a technical standpoint, both stocks exhibit a similar pattern and appear to be currently overextended. Any pullbacks could provide a valuable opportunity to take positions. Conclusion ● Upon evaluating all the key factors, it is evident that Karur Vysya Bank NSE:KARURVYSYA is in a more advantageous position than Federal Bank NSE:FEDERALBNK ; however, this does not imply that Federal Bank is struggling. Both banks offer promising investment prospects. As the economy grows, a fundamentally strong bank is expected to consistently surpass the overall banking sector.
NSE:FEDERALBNK
by GoodluckCapital
3