Feb'25 View on Century Plyboards (India) Ltd

Century Plyboards India Ltd was incorporated in January 1982 by Mr. Sajjan Bhajanka and Mr. Sanjay Agarwal. The company has a diversified portfolio & manufactures plywood, veneer, laminates, medium density fibre (MDF), particle board and allied products. After falling from 900 levels, the stock has been in a band between 850 - 700 and now near 750 level which is near its 200EMA and once it crosses it will surely make a new high above 850 with following reasons. • Consolidated revenue of Rs1,140cr, 21.7% higher yoy (9% above estimates). • Consolidated EBITDA margin was 11.4% yoy (+195 bps qoq) vs our estimate of 10.8%. • Plywood segment revenue grew by 19% yoy, supported by 15% yoy volume growth. • MDF volumes grew by 77% yoy; revenue grew by 46% yoy. • Centuryply reported better than expected financial performance in Q3FY25. • Volume growth remained robust in the plywood and the MDF segment in Q3FY25. • Centuryply has invested ~Rs2,000 cr towards capacity addition over FY23-FY25E. • We expect the company to report healthy volume growth over the next two years. • We expect adj. earnings per share of Rs17.2 in FY26E and Rs26.0 in FY27E. • We value the stock at a PE (price/earnings) of 33x on FY27E earnings.