Khambatta Securities has given Hold recommendation for Century Plyboards (India) with a target price of Rs. 714 in its research report issued on Nov 09, 2021

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.


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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