Buy Century Plyboards; target of Rs 398: Kotak Securities

Kotak Securities is bullish on Century Plyboards has recommended buy rating on the stock with a target price of Rs 398 in its research report dated January 03, 2018.

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January 10, 2018 / 17:30 IST

26 Aug, 2025 12:21

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Kotak Securities' research report on Century Plyboards

E-way bill implementation during FY19 is likely to be positive for organized plywood manufacturers. • Company is set to benefit from the incremental shift of unorganized towards organized segment in home building solution with its presence in plywood, laminate and MDF segment. • We tweak our estimates to factor in upcoming laminates capacity and also introduce FY20 estimates. We roll over our valuations on FY20 estimates and arrive at a revised price target of Rs 398 based on 27x FY20 estimates. (Rs 295 earlier on FY19 estimates). We upgrade the stock to BUY from ACCUMULATE earlier.

Outlook
We roll over our valuations on FY20 estimates and arrive at a revised price target of Rs 398 based on 27x FY20 estimates. We believe that with implementation of e-way bill on inter-state movement of goods from Feb, 2018 and intra-state movement of goods from June-2018, ramp up of MDF capacity as well as incremental laminates volume from new capacity will result in valuation re-rating for Century Plyboards.

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