Accumulate Century Plyboards on dips: Way2Wealth

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26 Aug, 2025 12:21

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Way2Wealth's special report on Century Plyboards

Century Ply is one of the largest sellers of plywood and decorative veneers in the Indian organized plywood market, catering to both residential as well as commercial consumers. It commands a 25% share in the organized market for plywood and is among the top 3 laminate producers in the country. The company is integrated with 6 manufacturing units spread across India & one in Myanmar (only Veneer). Over the last 18 months the company has readied new capacities in the wake of demand arising out of healthy macro trends in building & construction sector; governments 2020 Vision of Housing for All; and the expected rollout of GST which would lead to the market share moving from unorganized to organized. We expect the company to clock a healthy topline and bottomline going into FY16 &17.

VALUATIONS:"The macro-economic environment is currently full of skeptism. The real estate slowdown, the looming monsoon failure & the slowdown in consumer demand all translates into a braking of economic growth. Having said that the government’s investment push for urban infrastructure & healthy demand for affordable housing do provide a cushion for growth for the plywood industry. Century ply is the leader in the organized plywood market commanding 25% market share.  Over the last 12 to 18 months the company has readied new capacities in the wake of demand arising out of healthy macro trends in building & construction sector; governments 2020 Vision of Housing for All; and the expected rollout of GST which would lead to the sector moving from unorganized to organized. We expect the company to clock a healthy topline and bottomline going into FY16. At the CMP of Rs 198.1/- the stock trades at ~26x it FY16 estimated EPS of Rs 7.6/-. We advice investors to ACCUMULATE THE STOCK ON DIPS with medium to long term investment horizon", says Way2Wealth research report.

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