Buy Century Plyboards (India); target of Rs 490: ICICI Direct
ICICI Direct is bullish on Century Plyboards (India) recommended buy rating on the stock with a target price of Rs 490 in its research report dated June 12, 2021.
June 15, 2021 / 11:20 AM IST
An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.
ICICI Direct's research report on Century Plyboards (India)
Century Plyboard’s (CPIL) Q4FY21 performance was highlighted by robust growth across segments, aided by demand recovery amid a benign base. Topline was up 40.9% YoY to Rs 738.6 crore, with overall decline in FY21 at a meagre 7% YoY. MDF, plywood, laminate revenues grew 41.2%, 43%, 44.2% YoY to Rs 119.1 crore, Rs 399.2 crore, Rs 152.9 crore, respectively. EBITDA margin was up 380 bps YoY to 17.2% on account of operating leverage. Overall, reported PAT was up 115% YoY to Rs 83.2 crore, given the healthy operating performance.
We maintain BUY rating with a revised target price of Rs 490/share (32x FY23E EPS, earlier TP Rs 355/share). Higher multiple is for superior growth trajectory ahead.
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