Buy Century Plyboards (India); target of Rs 765: Sharekhan

Sharekhan's research report on Century Plyboards (India)

For Q4FY2024, Century reported marginally lower-than-expected standalone revenues. OPMs surprised negatively due to impairments. Hence, net earnings lagged. For FY2025, the management targets double-digit revenue growth aided by strong revenue growth in MDF and laminates and steady performance in plywood. OPMs to remain under pressure for FY2025. We expect demand revival during FY2025 as realty projects launched post COVID-19 starts getting delivered. OPMs revival to follow suit.

Outlook

We upgrade our rating to Buy on Century Plyboards with an unchanged PT of Rs. 765, as the recent correction in the stock and strong earnings growth outlook over the next 2-3 years.