Greenlam Industries stock spikes nearly 30% in four sessions; should you pick the shares now?
Greenlam Industries, one of the world's top three laminate manufacturers, has seen its stock surge by nearly 30% in the past four trading sessions, climbing from ₹411 apiece to ₹534.50 apiece. In the previous trading session, the stock hit an all-time high of ₹572.45. This sharp uptick in shares was attributed to the company's robust performance in Q2FY24.
In Q2FY24, the company reported consolidated net revenue from operations of ₹603.6 crore, marking 16.5% YOY growth. The laminate segment's revenue grew by 12.70% YoY, reaching ₹531.2 crore. Also Read: Multibagger NBFC stock Mufin Green Finance hits life-time high.
Jumps 200% in one year The laminate business witnessed volume growth of 15.7% on a YoY basis, contributed by both domestic and international business. Its operating profit jumped to ₹53.7 crore, a 40.8% surge as compared to the corresponding quarter last year, while the EBITDA margin improved by 210 basis points, reaching 12.5%, primarily driven by improvements in the laminate business. The company reported a net profit of ₹39.4 crore for Q2FY24, a growth of 34.9% over the same quarter of the previous financial year.
During the quarter, the company said, it commenced commercial production at the greenfield laminate project at Naidupeta, Andhra Pradesh. Following the company's healthy earnings, domestic brokerage firm Sharekhan retained its 'buy' call on the stock with a target price of ₹640 apiece. "Greenlam is on a strong growth trajectory, led by healthy demand for laminates and a softening of input costs.
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