Greenply spurts on carbon credit deal

DALAL STREET SPIKES

Plywood maker Greenply Industries jumped 6.27 per cent to close at Rs 100.8, underlined by a jump in volumes of over 1.4 lakh on announcement of carbon credit sale worth $5 million. The deal may add 5 lakh euros annually to its revenues between FY07-12.

The company's performance on the bourses has been subdued for some time. It reported robust financial performance in the first half of this financial year when its net sale grew a robust 50 per cent and profits soared by 40 per cent.

Despite this, it is trading at an attractive valuation of 9 times for annualised half-year earnings for FY07. In the post-Kyoto protocol world, companies from India and China are increasingly entering into the carbon trade linked to clean investments.