Shailendra Kumar
MDF businesses of organised players are replacing the lowest end plywood business of unorganised players.
Though in the recent quarters competition have intensified among organised players in MDF but huge potential of the shift from the unorganised segment (constitutes more than 2/3rd of the market) particularly post strict implementation of E-way bill gives confidence that Century Plyboard would deliver on its promise of 25 percent revenue growth in FY19. Target of Rs 305 implies 2.5 EV/Sales on FY20.
Disclaimer: The author is Chief Investment Officer, Narnolia Financial Advisors Ltd. The views and investment tips expressed by investment experts on moneycontrol.com are his own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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