Greenply Industries

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by narayan.pal, Jun 16, 2015.

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  1. narayan.pal

    narayan.pal Active Member

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    Can anyone share views why the stock is falling so much everyday in spite of so much good recos ???.....should i enter in the current price level or wait or be cautious?....
     
    narayan.pal, Jun 16, 2015
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  2. stockguru

    stockguru Active Member

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    Well it is just not a single company that has fallen or is falling. Almost all the companies are falling right now.
     
    stockguru, Jun 16, 2015
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  3. narayan.pal

    narayan.pal Active Member

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    Thx for the reply.....still i want to know is there any bad news relating to Greenply?....also, do u suggest to enter the stock at CMP about Rs. 825/- ?.....thx in anticipation....
     
    narayan.pal, Jun 16, 2015
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  4. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    I agree with this. There does not appear to be anything fundamentally wrong anywhere. In fact, the demerger of the laminates business has improved the return ratios of Greenply.

    The stock is quoting at an attractive P/E (14x) in comparison to its competitor Century Ply (26x).

    There is a recently published analyst's presentation which will give you important information about the prospects of the company.

    It is difficult to time the market. If you are convinced about the prospects of the company, the best strategy is to keep nibbling at the stock at all times.
     

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    Meenakshi Razdan, Jun 16, 2015
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  5. stockguru

    stockguru Active Member

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    Well having a quick look, I found out that Greenply did a demerger last november and had the shareholders of Greenply got one equity share of Greenlam Industries Ltd for every one share they hold.

    https://www.bseindia.com/xml-data/corpfiling/AttachHis/Greenply_Industries_Ltd_191114.pdf

    I don't know much about the resultant entity but in the document you can find that information. Also in a recent analyst meet presentation submitted by the company there is more information about the company, its current as well as future plans. I would advice you to take a look at this presentation.

    https://www.bseindia.com/xml-data/c...FEE8F7_66F5_4D0E_84DB_8672071A4982_104048.pdf

    Regarding the business of the company there has been recently a pressure on the margin's side because of the raw materials cost increased following the ban on timber imports from Burma. The MD of the company said this in an interview to CNBC the detail of which you can see here

    https://www.moneycontrol.com/news/r...e-growthfy16-greenply-industries_1391971.html

    The downfall in the stock maybe because of this. If you take my advice, I think the stock itself is not bad. Greenply is a well known brand name. However looking at the conditions of the market and continuing stock fall, I would advice you to buy the stock in parts. Suppose if you want to buy 100 shares, I would suggest you to buy 25-30 now and if the stock falls more you can buy more at lower prices. This would lower your average cost of purchase. However do a proper due diligence yourself before investing. One should convince themselves before making a stock purchase.

    Happy Investing :)
     
    stockguru, Jun 16, 2015
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  6. stockguru

    stockguru Active Member

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    As wonderfully quoted by Meenakshi, I totally agree with her. If you are yourself convinced about the prospects of the company, keep nibbling at the stock all the times. It is really difficult to time the market and one should be prepared to see the value of the stock eroding after the purchase. It requires patience and strong will to hold onto a losing stock if you believe in that company.
     
    stockguru, Jun 16, 2015
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  7. narayan.pal

    narayan.pal Active Member

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    Thx Meenakshi n Stockguru for ur advice....u know, ur advice is so important to me......ok....so far i have gone through, the stock attracts me.....also i want to invest for atleast 5 years....so m planning to buy in parts..
     
    narayan.pal, Jun 16, 2015
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  8. mahesh6699

    mahesh6699 New Member

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    Sudhir Valia , brother in law of Sun Pharma MD, bought bulk at around 1000, and he is called a finance wiz with good reason, so now when it has dropped is a good time to buy in small lots. keep accumulating.
     
    mahesh6699, Jul 9, 2015
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  9. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    Meenakshi Razdan, Jul 9, 2015
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  10. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    To get a feel of the prospects of the Industry, you can also see the research report by Way2Wealth on Century Plyboards:

    The macro-economic environment is currently full of skeptism. The real estate slowdown, the looming monsoon failure & the slowdown in consumer demand all translates into a braking of economic growth. Having said that the government’s investment push for urban infrastructure & healthy demand for affordable housing do provide a cushion for growth for the plywood industry. Century ply is the leader in the organized plywood market commanding 25% market share. Over the last 12 to 18 months the company has readied new capacities in the wake of demand arising out of healthy macro trends in building & construction sector; governments 2020 Vision of Housing for All; and the expected rollout of GST which would lead to the sector moving from unorganized to organized. We expect the company to clock a healthy topline and bottomline going into FY16. At the CMP of Rs. 198.1/- the stock trades at ~26x it FY16 estimated EPS of Rs. 7.6/-. We advice investors to ACCUMULATE THE STOCK ON DIPS with medium to long term investment horizon.
     

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    Meenakshi Razdan, Jul 9, 2015
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