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Hold Century Plyboards (India); target of Rs 714: Khambatta Securities

Khambatta Securities recommended hold rating on Century Plyboards (India) with a target price of Rs 714 in its research report dated November 09, 2021.

November 10, 2021 / 01:59 PM IST
 
 
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Khambatta Securities' research report on Century Plyboards (India)


Century Plyboards (India) Limited (CPIL) has reported phenomenal results for the quarter. The Top-line growth and Margins have been at all time high for 2QFY22. The operating Revenue witnessed a robust growth of 55.8% and 77.8% Y-o-Y and Q-o-Q respectively to ₹ 813.6 crores. EBITDA for the quarter jumped from ₹ 86.5 crores in 2QFY21 to ₹ 159.8 crores in 2QFY22 registering a strong growth of ~85%. The company reported highest ever EBITDA margin of 19.6% in 2QFY22, showing a growth of 306 bps y-o-y and 648 bps Qo-Q. The Net profit (after exceptional items) grew from ₹ 50.3 crores in 2QFY21 to ₹ 99.4 crores in 2QFY21. While the Net Profit margin for the quarter stood at 12.2%, a growth of 259 bps (Y-o-Y) and 543 bps (Q-o-Q). Plywood and Allied products constituted nearly ~55% of the total Revenues in 2QFY22 followed by Laminates (20%) and MDF (16%). As per the management, the share of MDF is expected to increase and will contribute nearly 25% of the total revenues in the next 5 years.



Outlook


We roll forward our valuation to FY24E earnings and value the stock at 35X FY24E EPS at ₹ 714, informing a HOLD rating with an upside potential of 8% from the current levels.

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first published: Nov 10, 2021 01:59 pm

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