Century Ply’s Q2FY24 standalone EBITDA declined 7% YoY/increased 8% QoQ to Rs1.4bn, in line with our estimates. EBITDA margin slipped by 253bps YoY/54bps QoQ to 14.2%. Regarding MDF, with stabilization of the second line at Hoshiarpur, the management revised its H2FY24 growth target from 20% to 25%, given that margin is likely to remain stable/improve. The ongoing MDF & Laminates project at AP is on track for commissioning in FY24.
OutlookWe broadly maintain FY24E-26E EBITDA/EPS and revise Sep-24E TP to Rs820/share, post quarterly rollover, based on 32x P/E. Overall, we expect EBITDA/EPS CAGR of 19-21% over FY23-26E. We maintain our BUY rating on Century Ply, as we like its integrated business model, leadership position, strong branding and higher growth visibility, underpinned by expansion plans and a robust balance sheet.
For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Century Plyboards - 13 - 11 - 2023 - emkayDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
