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Buy Century Plyboards; target of Rs 198: ICICI Securities

Buy Century Plyboards; target of Rs 198: ICICI Securities
July 09
14:24 2020

ICICI Securities is bullish on Century Plyboards recommended buy rating on the stock with a target price of Rs 198 in its research report dated July 08, 2020.

ICICI Securities research report on Century Plyboards

In the recent rally on the bourses, majority of building material stocks seem priced-in and in some cases expensively valued. Century Plyboards (CPBI) however provides a rare combo of compelling valuations (14.4x FY22E earnings) amid sharp improvement in its fundamentals – impressive strengthening of balance sheet in FY20 with sharply improved CFO and significant debt repayment.

Outlook

CPBI is also well positioned to witness a swift earnings recovery in FY22E driven by a) its best-in-class execution capabilities; b) expected faster recovery in categories like laminates, MDF and particle boards; c) cost cutting initiatives undertaken by the company and; d) rolling out of initiatives like ILP (influencer loyalty programme) and SFA (sales force automation) recently. Maintain BUY.


For all recommendations report, click here

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First Published on Jul 9, 2020 01:13 pm

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