ICICI Direct's research report on Century Plyboards (India)
Century Plyboards is India’s leading plywood manufacturer with a market share of ~25% in the country’s organised segment of plywood sector. It derives majority of revenues from plywood (53% of FY22 revenue), followed by laminates (19%), and MDF (18.5%) segments while the balance is contributed by fibre cement boards and particle board divisions. Century also operates a CFS with capacity to handle 156,000 TEUs containers and contributed ~3% to overall FY22 revenues.
Outlook
Post 24% correction in the last two months, we upgrade from HOLD to BUY as it continues to report industry leading growth stable margins and net cash balance sheet with internal accruals fuelling the expansion. We value Century at Rs 660/share (32x FY24 P/E).
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