Hold Century Plyboards: target of Rs 730: ICICI Securities

ICICI Securities's research report on Century Plyboards

Century Plyboards (CPBI) reported Q1FY26 consol. revenue growth of 16.3% YoY. Plywood / laminates / MDF and allied revenue grew 14.5% / 12.8% / 23.7% YoY with volume up 10.6% / 6.8% / 19% YoY (6-year CAGR of 9.9% / 4.5% / 12.6%), respectively. Consol OPM declined 10bps YoY to 11% (-27bps QoQ), resulting in EBITDA / APAT growth of 15.3% / 19.6% YoY. Plywood margin declined 58bps YoY, laminates margin fell 413bps YoY whereas MDF margin improved 597bps YoY. Management has guided for revenue growth of 10%+ / 20% / 20% YoY and OPM of 12-14% / high-single digit / 15% in plywood / laminates / MDF for FY26, respectively. We cut our EBITDA by ~3.9-5.8% for FY26-27E and maintain HOLD with a rolled over Jun’26E revised TP of INR 730, set at an unchanged 32x PER.

Outlook

Maintain HOLD with a rolled-over Jun’26 revised TP of INR 730 (earlier INR 743), set at an unchanged 32x P/E one-year forward.