Buy Century Plyboards; target of Rs 620: Sharekhan

Sharekhan's research report on Century Plyboards

For Q3FY2023, Century Plyboards clocked in-line numbers, led by better performance of Plywood segment, while MDF and particleboard segments were hit by higher imports. Management trimmed down revenue guidance for FY2023 for MDF and particleboard, while OPM guidance across products owing to higher raw material prices, near term demand challenges and high imports. Capacity expansion plans in MDF, laminates and particleboards stay intact. Expansion of core business to capture industry growth potential over long term while MDF and particle board face near-term headwinds.

Outlook

We retain a Buy on Century Plyboards with a revised price target of Rs. 620, owing to a downward revision in earnings estimates and assigning lower valuation multiple to factor in near-term challenges.