The Q4FY25 performance of most Home Décor companies was disappointing, according to a report by Nuvama Institutional Equities.

Pipes manufacturers experienced a decline in EBITDA and PAT by 10% and 7%, respectively, impacted by destocking and reduced government expenditures.

Tile manufacturers, facing sluggish demand, achieved only a 2% year-over-year increase in revenue while their EBITDA and PAT plummeted by 20% and 52% year-over-year due to operational deleverage and one-off issues in non-tile segments.

In the wood panel sector, revenue rose by 7% year-over-year; however, EBITDA and PAT declined by 9% and 41% due to intense competition and rising timber costs.

APL Apollo, Venus Pipes, and Greenply are highlighted as the brokerage’s top recommendations.

Q4 result review

As per the brokerage, APL Apollo Tubes exhibited impressive results for Q4FY25, with a year-on-year volume increase of 25%. The EBITDA per ton reached ₹4,864, surpassing the ₹4,700 forecast, driven by reduced discounts and effective cost management, including the promoter’s salary.

APL Apollo Tubes is optimistic about achieving over 20% volume growth in FY26E, with an EBITDA per ton target of ₹5,000, supported by expansion into multiple locations and a focus on high-value products while maintaining its balance sheet strength.

Venus Pipes

The brokerage indicated that Venus Pipes delivered Q4FY25 results that were in line with expectations, as revenue increased by 15% year-over-year, although EBITDA and PAT decreased by 8% and 5% YoY, respectively. The revenue growth was largely due to a significant rise in export contributions (44% compared to 12% in Q4FY24), while domestic sales continued to be impacted by weak demand.

For FY25, volumes increased by 18% YoY, reaching 25,000 tonnes. The margins for this quarter contracted by 400 basis points YoY, attributed to the decline in domestic demand and reduced sales of welded pipes. With a robust order book valued at ₹5.74 billion, diversified end-user categories, and strong demand in both export and domestic markets, Venus is positioned for substantial growth in the future.

Greenply

According to the brokerage, Greenply experienced an 8% year-on-year growth in revenue, driven by a 10% increase in plywood volumes and a 3% increase in MDF volumes, along with a 3.7% increase in plywood realizations and an 11% jump in MDF realizations.

The MDF segment’s performance suffered due to a 7% decline in volumes year-on-year, although EBITDA margins saw a 50 basis point improvement year-on-year, reaching 15%.

The profit after tax (PAT) dropped 38% year-on-year to ₹166 million, primarily due to an increase in branding expenses and losses of ₹86 million from joint ventures, which impacted the bottom line for the quarter.

Multibagger Stock

Over the past five years, APL Apollo share price has increased by 1113.25%. In the last three years, Venus Pipes share price has grown by 322.77%. Greenply share price has experienced a rise of approximately 277.59% over a five-year period.

Over the past week, APL Apollo share price has increased by 3.22%. In the last quarter, the stock has appreciated by 32.88% and has grown by 32.06% over the past year.

Over the last week, Venus Pipes share price decreased by 0.46%. The stock has risen by 7.53% over the last three months but has dropped by 27.42% over the past year.

In the last week, the price of Greenply shares increased by 0.11%. Over the past three months, the stock has gained 24.98%, and it has risen 28.64% compared to the previous year.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.