Buy Century Plyboards (India); target of Rs 206: Khambatta Securities

Khambatta Securities is bullish on Century Plyboards (India) has recommended buy rating on the stock with a target price of Rs 206 in its research report dated October 09, 2020.

Broker Research

October 12, 2020 / 15:10 IST

26 Aug, 2025 12:21

Volume

Todays L/H

Khambatta Securities' research report on Century Plyboards (India)

Century Plyboards (India) Limited (CPIL) has evolved from an eastern India-based regional player to a pan-India company with international presence. The company has expanded its footprint through a network of branch offices and distributors across the country and has also successfully established manufacturing facilities in different parts of India. CPIL has transformed itself from a single-product to multi-product company with almost a half of total revenues coming from non-plywood products such as laminates, decorative veneer, MDF and particle board. CPIL is a market leader in plywood with a share of ~25% in India’s organised plywood market.

Outlook

We expect strong growth recovery in FY22 driven by revival of demand coupled with improvements in margin. The targeted full repayment of long-term debt will boost PAT margin incrementally. Basis its industry leadership position in plywood and MDF, and healthy margin profile, we value CPIL at a target P/E multiple of 20.0x FY22E EPS. This generates a price target of Rs 206 with an upside of 21% and informing a BUY rating.

For all recommendations report, click here