Buy Century Plyboards; target of Rs 946: Anand Rathi

Buy

Anand Rathi's research report on Century Plyboards

Century Plyboards reported a strong performance in Q2, with its revenue/ gross profit/EBITDA growing by 17/25/57% y/y to Rs13.8/6.7/1.7bn, while PAT rose 72% y/y to Rs689m. Revenue growth was led by healthy traction in plywood/laminate/MDF segment, while easing input cost and change in product-mix aided gross profit. Cost optimisation and higher capacity utilisation supported surge in operating profit. For FY26, the management guided for volume growth of >13/25/40/15-17% and EBITDA margin of 12-14/15/15/high-single digit for plywood/MDF/particle board/laminates.

Outlook

Keeping our previous estimates unchanged, we expect its revenue/earnings to clock 14/50% CAGR over FY25-28e. Thus, we maintain BUY rating on the stock with a 12-mth TP of Rs 946, valuing it at 37.5x FY27e/FY28e average EPS.

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Century Plyboards - 25112025 - anand