ICICI Securities is bullish on Century Plyboards recommended buy rating on the stock with a target price of Rs 198 in its research report dated July 08, 2020.
ICICI Securities research report on Century Plyboards
In the recent rally on the bourses, majority of building material stocks seem priced-in and in some cases expensively valued. Century Plyboards (CPBI) however provides a rare combo of compelling valuations (14.4x FY22E earnings) amid sharp improvement in its fundamentals – impressive strengthening of balance sheet in FY20 with sharply improved CFO and significant debt repayment.
Outlook
CPBI is also well positioned to witness a swift earnings recovery in FY22E driven by a) its best-in-class execution capabilities; b) expected faster recovery in categories like laminates, MDF and particle boards; c) cost cutting initiatives undertaken by the company and; d) rolling out of initiatives like ILP (influencer loyalty programme) and SFA (sales force automation) recently. Maintain BUY.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Read More