Hold Century Plyboards (India); target of Rs 170: ICICI Direct

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

ICICI Direct's research report on Century Plyboards (India)

Century Plyboard’s (CPIL) topline grew 7.3% YoY to Rs 583.2 crore (our estimate: Rs 616.8 crore). Plywood division revenue growth was flattish YoY at Rs 323.5 crore while MDF division revenues grew only 17.4% YoY to Rs 76.0 crore. EBITDA margin contracted 437 bps to 10.9% due to lower EBITDA margin in logistics division & plywood division. PAT de-grew 4.4% YoY to Rs 34.2 crore on account of contraction in EBITDA margin.

Outlook

While we are positive on CPIL’s long-term growth, EBITDA margins have come under pressure amid stiff competition in MDF and shift of focus on low-margin plywood products. With margins expected to further remain under pressure, we expect revenues, PAT to grow at 11.7%, 14.8% CAGR to Rs 2,824.7 crore, Rs 209.4 crore, respectively, in FY19-21E. Hence, we maintain HOLD rating on the stock with a target price of Rs 170/share.

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