Time period given by analyst is one year when Century Plyboards (India) Ltd. price can reach defined target.
Century Plyboards (India) Ltd., incorporated in the year 1982, is a Mid Cap company (having a market cap of Rs 9193.52 Crore) operating in Building Materials sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 755.22 Crore, up 14.20 % from last quarter Total Income of Rs 661.33 Crore and up 42.09 % from last year same quarter Total Income of Rs 531.52 Crore. Company reported net profit after tax of Rs 86.94 Crore in latest quarter.
Investment Rationale
Century Plyboards (CPBI) reported strong recovery in its plywood and laminates segments with sequential revenue growth of 11.8% and 27.4% respectively, leading to overall revenue beat at Rs7.4bn (I-Sec: Rs6.9bn), up 13% QoQ. EBITDA margin at 17.2%, 80bps lower than estimate, was led largely by a few one-offs in ‘other expenses’ in Q4FY21. Expecting sectoral tailwinds to sustain, the management too has given robust guidance for the medium term: a) overall operational cost savings to the tune of Rs300mn over next 2 years; b) doubling of plywood capacity over next 3 years with >10% revenue CAGR and sustainable EBITDA margin at 14-15%; c) >15% revenue CAGR and EBITDA margin range of 16-18% in laminate segment; d) tripling of MDF revenues over next 3-4 years with capex of Rs7bn scheduled over FY22-FY23 while margins are likely to remain firm. With superior cashflow management over the next 2 years, the brokerage expects RoCEs to trend higher at ~26% in FY23E (vs ~21% in FY21 despite aggressive capex initiatives).
Promoter/FII Holdings
Promoters held 73.1 per cent stake in the company as of March 31, 2021, while FIIs held 4.9 per cent, DIIs 12.3 per cent and public and others 9.7 per cent.
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