Buy Century Plyboards; target of Rs 671: Sharekhan

Sharekhan's research report on Century Plyboards

For Q4FY2023, Century Plyboards reported strong outperformance led by strong operational performance in Plywood and sequential improvement in MDF OPMs. Management remained confident on healthy demand environment and expects strong revenue growth in MDF, laminates and Plywood largely led by volume growth. Capacity expansion plans in MDF, laminates and particleboards stay intact although there has been upward revision in capex spends due to inflationary environment.

Outlook

We maintain a Buy rating on Century Plyboards with a revised price target of Rs. 671. We have increased earnings estimates and a higher valuation multiple to account for its long-term growth potential.