Check Before You Invest : Greenlam Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Greenlam Industries Ltd belong to?

Greenlam Industries Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Laminates/Decoratives segment.

Q.2 Is Greenlam Industries Ltd a good quality company?

Greenlam Industries Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Greenlam Industries Ltd undervalued or overvalued?

Greenlam Industries Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Greenlam Industries Ltd a good buy now?

Greenlam Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Greenlam Industries Ltd?

Greenlam Industries Ltd revenue growth is 11.4% for FY-2025, which is below its 5-year CAGR of 14.24%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Greenlam Industries Ltd?

Greenlam Industries Ltd Return on capital employed is 8.04% for FY-2025, which is below its 5-year historical median of 13.96%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 Return on Asset of Greenlam Industries Ltd?

Greenlam Industries Ltd Return on Asset is 2.43%, which is below its 5-year historical median of 6.48%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Greenlam Industries Ltd?

Greenlam Industries Ltd Return on equity is 6.2% for FY-2025, which is below its 5-year historical median of 13.72%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Greenlam Industries Ltd?

Greenlam Industries Ltd Cash conversion cycle is 51 days, below its 5-year historical median of 60 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.92	1.05
ROE	6.2	13.72
ROCE	8.04	13.96
Cash Conversion Cycle	51 days	60 days

Q.6 Gross Profit margin of Greenlam Industries Ltd?

Greenlam Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.5% for FY-2025, which is below its 5-year median of 11.1%, indicating decreasing margins.

Q.7 Operating Profit Margin of Greenlam Industries Ltd?

Greenlam Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.75% for FY-2025, which is below its 5-year median of 11.52% indicating decreasing margins.

Q.8 Net Profit Margin of Greenlam Industries Ltd?

Greenlam Industries Ltd Net Profit Margin is 2.66% for FY-2025, is below with its 5-year median of 5.98%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8.5	11.1
Operating Profit Margin	10.75	11.52
Net Profit Margin	2.66	5.98

Q.9 Debt to Equity ratio of Greenlam Industries Ltd?

Greenlam Industries Ltd Debt-to-Equity ratio is 0.95, which is above with the industry average of 0.76, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Greenlam Industries Ltd?

Greenlam Industries Ltd Debt to cash flow from operations is 5.25, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Greenlam Industries Ltd?

Promoters hold 50.98% of the Greenlam Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Greenlam Industries Ltd vs industry peers?

Greenlam Industries Ltd revenue CAGR is 14.24%, compared to the industry median CAGR of 8.11%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	11.4	8.1
Gross Profit Growth	-19.1	6
Operating Profit Growth	-6.8	8.3
Net Profit Growth	-50.7	3.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.92	1.05
ROE	6.2	8.85
ROCE	8.04	10.91
Cash Conversion Cycle (days)	50.52	117

Valuation & price assessment

Q.1 Stock return of Greenlam Industries Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 14.4% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	14.4%	17.7%	16.1%	12.2%

Q.3 Valuation ratios of Greenlam Industries Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	305.76	46.26	24.31
Price to Book	5.08	5.70	2.16
Price to Sales	2.01	2.47	1.05
EV to EBITDA	23.69	24.65	14.85

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