Get App
Last Updated : Jun 18, 2019 12:04 PM IST | Source:

Hold Century Plyboards (India); target of Rs 170: ICICI Direct

ICICI Direct recommended hold rating on Century Plyboards (India) with a target price of Rs 170 in its research report dated May 29, 2019.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Century Plyboards (India)

Century Plyboard’s (CPIL) topline grew 7.3% YoY to Rs 583.2 crore (our estimate: Rs 616.8 crore). Plywood division revenue growth was flattish YoY at Rs 323.5 crore while MDF division revenues grew only 17.4% YoY to Rs 76.0 crore. EBITDA margin contracted 437 bps to 10.9% due to lower EBITDA margin in logistics division & plywood division. PAT de-grew 4.4% YoY to Rs 34.2 crore on account of contraction in EBITDA margin.


While we are positive on CPIL’s long-term growth, EBITDA margins have come under pressure amid stiff competition in MDF and shift of focus on low-margin plywood products. With margins expected to further remain under pressure, we expect revenues, PAT to grow at 11.7%, 14.8% CAGR to Rs 2,824.7 crore, Rs 209.4 crore, respectively, in FY19-21E. Hence, we maintain HOLD rating on the stock with a target price of Rs 170/share.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Exclusive offer: Use code "BUDGET2020" and get Moneycontrol Pro's Subscription for as little as Rs 333/- for the first year.

First Published on Jun 18, 2019 12:04 pm
Follow us on