ICICI Direct has given Buy recommendation for Century Plyboards (India) recommended buy rating on the stock with a target price of Rs 490 in its research with a target price of Rs. 490 in its research report issued on Jun 12, 2021
ICICI Direct’s research report on Century Plyboards (India)
Century Plyboard’s (CPIL) Q4FY21 performance was highlighted by robust growth across segments, aided by demand recovery amid a benign base. Topline was up 40.9% YoY to Rs 738.6 crore, with overall decline in FY21 at a meagre 7% YoY. MDF, plywood, laminate revenues grew 41.2%, 43%, 44.2% YoY to Rs 119.1 crore, Rs 399.2 crore, Rs 152.9 crore, respectively. EBITDA margin was up 380 bps YoY to 17.2% on account of operating leverage. Overall, reported PAT was up 115% YoY to Rs 83.2 crore, given the healthy operating performance.
We maintain BUY rating with a revised target price of Rs 490/share (32x FY23E EPS, earlier TP Rs 355/share). Higher multiple is for superior growth trajectory ahead.