Century Plyboards (CPIL) topline grew 13.5% YoY to Rs 578.9 crore, mainly led by better utilisation in MDF division. MDF division clocked revenues of Rs 88.2 crore in Q3FY19 vs. Rs 47.3 crore in Q3FY18 EBITDA margins were flattish QoQ at 13.1% (our expectation: 14.5%) due to lower EBITDA margin in plywood division (12.1% in Q3FY19) PAT de-grew 11.2% YoY to Rs 41.4 crore (our expectation: Rs 44.6 crore) mainly on account of a contraction in EBITDA margin.
OutlookAlso, we would be keenly watching CPIL’s plan on capacity addition (in UP) in the already oversupplied MDF market. Hence, we maintain HOLD rating on the stock with a revised target price of Rs 155 (20x FY20E EPS).
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.Discover 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.
Read More
