Hold Century Plyboards; target of Rs 743: ICICI Securities

ICICI Securities research report on Century Plyboards

Century Plyboards (CPBI) reported Q4FY25 consol. revenue growth of 13% YoY. Plywood/laminates/MDF and allied revenues grew 9.6%/ 1.3%/37.2% YoY with volumes up 6.8%/0.5%/39.2% YoY (6-year CAGRs of 10.2%/2.7% / 16.3%), respectively. Consol. OPM contracted 275bps YoY to 11.2% (-13bps QoQ), resulting in EBITDA/APAT fall of 9.3%/35% YoY. Plywood margin expanded 30bps YoY while laminates’ margin fell 800bps YoY and MDF margin contracted 310bps YoY (due to lower utilisation of AP plant). Management guides for revenue growth of 10%+/20%/20% YoY and OPM of 12–14%/high single-digit/15% in plywood/laminates/MDF for FY26.

Outlook

We cut our EBIDTA estimates by ~6.3– 4.1% for FY26–27E and retain HOLD with a rolled over revised Mar’26E TP of INR 743 – set at an unchanged 32x PER.