I don’t have much of view on this sector as I don’t track it. But it would be interesting to see which company has a head start in the MDF business and how much would it contribute to sales going forward. I think Greenply might have a head start. Not sure but maybe MDF business has better margins and hence company with better and increasing contribution towards MDF business might have an additional plus point. Also, I think that Greenply is looking to outource the Plywood and laminates manufacturing, which again might have a positive impact and make the business a bit asset light and reduce working capital cycle and enhance return ratios further.
Note: I am an amateur investor and I am stating the above as only one of the few factors that should be considered. As I don’t track this sector and hence one should verify the above statements in detail.
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