Double Your Holdings: 1:1 Bonus Share Stock Set To Soar After Budget 2025; Watch For Maximum Gains?

One of the top three laminate producers in the world, Greenlam Industries Limited is a top supplier of integrated substrate and surface solutions. The firm continuously delivers innovation and quality while providing a broad range of products to clients in more than 120 countries. Its wide range of products includes pre-laminated chipboards, engineered wood flooring, doors, plywood, decorative veneers, interior and exterior cladding, lavatory cubicles and locker solutions and decorative laminates and compacts.

Greenlam Industries Bonus Shares

The Board of Directors at its meeting held on January 30, 2025, has, inter alia, discussed, considered and approved "issue of bonus shares to coincide the same with the Company's 10 years of listing at BSE Limited & National Stock Exchange of India Limited, as below; Issue bonus shares in the ratio of 1:1 i.e. 1 (one) new fully paid-up equity share of Rs 1/- (Rupee One Only) each for every 1 (one) existing fully paid-up equity share of Rs 1/- (Rupee One Only) each, to the eligible equity shareholders of the Company as on the record date, by capitalization of capital redemption reserves and / or securities premium received in cash and / or free reserve and / or retained earnings, subject to the approval of the Shareholders of the Company," said Greenlam Industries in a stock exchange filing.

Greenlam Industries Q3 Financials

Consolidated revenue from operations increased 6.9% to Rs. 602.0 crores for the third quarter that concluded on December 31, 2024, from Rs. 563.4 crores for the same quarter of the previous fiscal year. The quarter's gross margins jumped by 20 basis points to 55.0% from 54.8% in Q3FY24. Compared to Rs. 71.1 crores in the same quarter of the previous fiscal year, the operating profit plunged 10.7% to Rs. 63.5 crores in the quarter under review. In Q3FY25, the company's net profit was Rs. 12.5 crores, down by 50.3% from Rs. 25.3 in the same period the previous year. EBITDA dropped 10.7% year-on-year from Rs 71.1 Cr in Q3FY24 to Rs 63.5 Cr in Q3FY25.

Mr. Saurabh Mittal, Managing Director and Chief Executive Officer, Greenlam Industries Ltd. said, "The quarter remained subdued, with an overall year-on-year revenue growth of 6.9% taking our net consolidated revenues for the quarter at Rs. 602.0 crores. Our international laminate business continued to deliver steady performance in both value and volume terms, reflecting our strong global presence. On the domestic front, the laminate business faced challenges this quarter. However, our Mikasa Floors and Doors businesses showcased growth of 13.8% and 49.5%, respectively, while the plywood segment maintained steady momentum with a YoY growth of 90.7%."

"Gross margins during the quarter expanded by 20 basis points to 55.0%, driven by stable raw material costs and pricing discipline. However, lower revenue and higher operating expenses during the quarter impacted EBITDA margins, which contracted by 200 basis points to 10.6%, compared to 12.6% in Q3FY24. Net profit declined to Rs. 12.5 crores, primarily due to lower operating profits, higher depreciation and interest for new projects and income tax provisions related to prior period. Our working capital stood at 67 days during the quarter," he added.

"We are excited to announce the commencement of commercial production at our state-of-the-art chipboard manufacturing facility in Naidupeta, Andhra Pradesh. Equipped with advanced German technology, this facility positions us as India's only fully integrated manufacturer offering a unified range of laminates, compacts, restroom cubicles, and prelaminated chipboards, all produced at a single location. With an annual capacity of 2,92,380 cubic meters, the plant has the potential to generate revenues of up to ₹750 crores at full capacity utilization. The total capital investment for this project stands at approximately ₹735 crores as of the start of commercial production. The prelaminated chipboard will be marketed under the Greenlam MFC brand," Saurabh Mittal stated.

Greenlam Industries Share Price Target

"Greenlam stock price is slightly bullish on the Daily charts with strong support at 525. A Daily close above resistance of 588 could lead to a target of 625 in the near term," stated A R Ramachandran, Independent Research Analyst.

Disclaimer

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