Sharekhan recommended Hold rating on Century Plyboards (India) with a target price of Rs 190 in its research report dated May 29, 2019.
Sharekhan's research report on Century Plyboards (India)
Excess MDF capacities, falling plywood volumes and volatile crude prices are key near-term risks. Net earnings were affected by weak operational numbers on lower gross profit margins and higher other expenses. Company aims for double-digit revenue growth y-o-y in FY2020 and improved operating margins. MDF and Particle board capacities set to expand, but will contribute after one year of commencing the work.
We maintain our Hold rating with a revised PT of Rs. 190 on account of lower estimates and rolling forward our valuation multiple to FY2021.
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