Greenply Industries witnessed a decline of over 4% in its stock value following a recent management meeting. Nuvama, a prominent financial analysis firm, has adjusted its target prices for Greenply Industries downward due to key takeaways from the meeting.

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Nuvama analysts have pointed out that a slowdown in demand and obstacles in the joint venture model have delayed the realisation of benefits from the company's ongoing structural changes. Despite these challenges, Greenply Industries remains committed to achieving a sales target of 0.1 million cubic meters in its MDF (medium-density fiberboard) division.

One pressing concern in the near term is the persistence of margin pressure, primarily due to soaring timber costs.

Additionally, the company's operations in Gabon continue to pose challenges. Although Greenply Industries has limited exposure to Gabon, they have expressed their intent to liquidate these operations.

Taking all these factors into account, Nuvama has revised its earnings per share (EPS) estimates for FY 2023, FY 2024, and FY 2025, reducing them by a range of 22% to 15% for the next three years. Consequently, the target price for Greenply Industries has been adjusted from Rs 196 to Rs 188.

However, it's worth noting that Nuvama maintains a "hold" recommendation on the stock, suggesting that there may still be potential for recovery in the future.

The stock was trading at Rs 162 on the NSE on Monday, lower by 4.06 percent. It has lost over 4 percent in the last one month.

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