Hold Century Plyboard; target of Rs 775: Prabhudas Lilladher

Prabhudas Lilladher's research report on Century Plyboard

CPBI has guided revenue growth of 10%/20%/20%/40% in FY26 across its Plywood/Laminate/MDF/PB segments with expected EBITDA margin of 12- 14%/single digit/15%/low single digit for Plywood/Laminate/MDF/PB. We believe Plywood performance will continue with healthy volume growth and better realizations as company took a price hike of 2% in Q1FY26 and improvement in laminates and MDF segments. CPBI aims to reach a turnover of Rs120bn by FY31. We expect overall revenue/EBITDA/PAT CAGR of 13.1%/29.5%/61.7% with Plywood/Laminate/MDF volume CAGR of 11.1%/14.9%/19.1%.

Outlook

We downward revise Century Plyboards (CPBI) FY26E/FY27E earnings by 3.6%/5.3% and downgrade our rating to ‘HOLD’ from ‘BUY’ with TP of Rs 775 (Earlier 806), valuing at 35x FY27E.

For all recommendations report, click here