Hold Century Plyboard; target of Rs 702: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Century Plyboard with a target price of Rs 702 in its research report dated August 08, 2025.

Broker Research

August 12, 2025 / 12:42 IST

hold

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Century Plyboard

We downward revise Century Plyboard (CPBI) FY26E/FY27E earnings by 8.5%/9.3% due to major disappointment in the Particle Board segment in Q1FY26 and expectations of continued underperformance. CPBI has guided for revenue growth of 10%/20%/20%/40% in FY26 across its Plywood/Laminate/MDF/Particle Board segments with EBITDA margin expected at 12-14%/8-10%/15%/low single digits. We believe Plywood will continue to see healthy volume growth and better realizations as the company took a price hike of 2% in Q1FY26. Also the company highlighted during the call that Jul’25 saw the highest volume growth in its history, and improvement in Laminate and MDF segments.

Outlook

We expect overall revenue/EBITDA/PAT CAGR of 13.2%/26.1%/47.8% with Plywood/Laminate/MDF/Particleboard volume CAGR of 11.1%/14.0%/19.0%/15.6% over FY25-27E. We maintain our rating of ‘HOLD’ with TP of Rs702 (earlier Rs775), valuing at 35x FY27E.

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