Buy Century Plyboards India; target of Rs 840: Sharekhan

Sharekhan's research report on Century Plyboards India

For Q1FY2024, Century reported broadly in-line standalone performance, led by strong revenue growth in plywood and MDF coupled with OPM expansion in plywood and laminates. For FY2025, management has retained its segmental revenue growth and OPM guidance. The company has taken price hikes in the plywood and laminates segments from August 1, 2024. Management is focusing on ramping up newly commissioned capacities in MDF, laminates, and PVC segments, housed under its subsidiary – Century Panel.

Outlook

We retain BUY on Century Plyboards with a revised PT of Rs. 840, rolling forward our valuation to H1FY2027E and considering its strong earnings growth outlook over the next 2-3 years.