Sharekhan has given Buy recommendation for Century Plyboards with a target price of Rs. 505 in its research report issued on Aug 11, 2021

Sharekhan’s research report on Century Plyboards

Q1FY2022 revenues were marginally lower than estimate. Net earnings came in below estimates due to lower than anticipated OPM. Inventory levels rise but are expected to taper down by Q2FY2022 end. Expect Q2 to see sharp recovery with improvement in OPM. The company to unveil roadmap for next three years post Q2FY2022. Brownfield MDF plant in Punjab delayed by a quarter. Greenfield MDF plant in South deferred due to delay in getting approvals.

Outlook

We retain a Buy on Century Plyboards Limited (Century) with an unchanged PT of Rs. 505, as a strong growth outlook and healthy balance sheet present further room for an upside.

 

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