Mumbai, June 9 -- Greenpanel Industries, India's listed medium-density fibreboard maker, has shed 16% this year, but analysts are far from giving up on the stock. With capacity utilisation languishing at 55-60% and margins near multi-year lows, brokerages see a stock that could deliver healthy returns as operations settle down over the next three years.

The numbers tell the story of a company stuck in a cyclical trough, as in the March quarter, Greenpanel's Ebitda margin collapsed to 9.1% from 15.9% a year ago, even as revenue grew 15.5% to Rs.391.4 crore. Peers such as Century Plyboards and Greenply, with more diversified revenue streams, have fared better, leaving Greenpanel as the sector's laggard.

The stock may have disappointed inv...