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Buildings within Infra remain strong; Woodpanel Industry poised for growth

ICICIdirect Research 21 Nov 2025 DISCLAIMER

Road Construction: Most players (barring HG infra – which has ~40% non-road revenues) saw YoY decline ranging from high single digit to even 40% (in case of KNR). This is mainly because most of the road players are sitting on lower order book (order book to bill for most is below 2.5x (excluding PNC Infra which is has decent book to bill of 3.6x) owing to muted order by NHAI. This space growth is contingent on order inflows by NHAI. We note that while the bid pipeline is over 1 lakh crore, the awarding continues to be delayed. One should wait for momentum in ordering before turning positive here.
Buildings segments: This segment has clearly outperformed with PSP and Ahluwalia reporting 20% and 16% revenue growth with margins expansion on operating leverage. Both these companies are sitting on order book to bill in excess of 4x which reflects strong revenue growth visibility. We have a BUY on Ahluwalia with TP of 1160.
Woodpanel: The quarter saw healthy performance with healthy double-digit growth in Plywood, MDF and Laminate Segment.  Greenlam with capex of close of Rs 1500 crore done and recovery in MDF cycle for Greenply makes them well placed for growth. We have a BUY on Greenlam with TP of 310 and on Greenply with TP of 340, respectively.

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