Like Century Plyboards, target Rs 255: Pankaj Pandey

Pankaj Pandey, Head-Research at ICICIdirect told CNBC-TV18, "In the last three months, Century Plyboards has delivered about 30 percent kind of a return and we expect the run to continue because of the fact that we still expect the growth to pan out. If you look at in the last five years, this company has grown their earnings by about 18 percent odd and in the next two years, we expect the growth to be about 19 percent odd. In addition to that, the company is expected to benefit from higher discretionary spending and GST implementation because as a result of that we would expect the organised sector to gain further more prominence." "This company has got 25 percent market share in the organised pie. The organised pie itself is one fourth of the overall market size. So, we expect the shift towards the organised segment to benefit this company and as a result of that we would expect the topline growth to be about 19 percent. Margins are expected to remain the same and similar bottomline growth of 18 percent odd," he said."We are also expecting this company to benefit from the fact that the government has recently imposed anti-dumping duty on MDF, the capacity of which is expected to come in the first quarter of next calendar year. We expect a faster ramp up in capacity utilisation in the first year itself which should benefit the company. The growth momentum is expected to continue in this company and the price momentum also should follow accordingly which is why we still like this stock with a higher target price of Rs 255."