Hold Century Plyboards (India); target of Rs 180: ICICI Direct
ICICI Direct’s research report on Century Plyboards (India)
Century Plyboard’s (CPIL) topline grew 4.4% YoY to Rs 589.4 crore. MDF revenue grew 26.8% YoY to Rs 77.7 crore while plywood revenues de-grew 1.8% YoY to Rs 316.5 crore. The key highlight for Q2FY20 was improvement in sequential as well as YoY MDF realisation. MDF realisations grew 5% QoQ (grew 3% YoY) to Rs 23,342/CBM in Q2FY20. EBITDA margin expanded 260 bps YoY to 15.7% on account of better margin growth in the MDF division (MDF EBITDA margin expanded 16.4 percentage points YoY to 22.3%). Overall, PAT grew 37.9% YoY to Rs 52.1 crore.
Hence, we maintain HOLD recommendation on the stock with a revised target price of Rs 180/share (18x FY21E EPS).
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