I-Sec maintains Hold on Century Plyboards, lowers target price to Rs 743

ICICI Securities has maintained its Hold call on Century Plyboards (India) Ltd. with a revised target price of Rs 743 (earlier Rs 766). The current market price of Century Plyboards (India) is Rs 773.05. Century Plyboards (India), incorporated in 1982, is a Mid Cap company with a market cap of Rs 17186.19 crore, operating in Building Materials sector.

Century Plyboards’ key products/revenue segments include Laminated Plywood, Other Operating Revenue, Export Incentives and Scrap for the year ending 31-Mar-2024.

Financials
For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 1200.34 crore, up 5.04% from last quarter Total Income of Rs 1142.80 crore and up 12.33 % from last year same quarter Total Income of Rs 1068.56 crore. The company has reported net profit after tax of Rs 53.15 crore in the latest quarter. The company?s top management includes Mr.Sajjan Bhajanka, Mr.Vijay Chhibber, Mr.Sunil Mitra, Mr.Naresh Pachisia, Mr.Probir Roy, Ms.Ratnabali Kakkar, Mr.Debanjan Mandal, Mr.Amit Kiran Deb, Mrs.Nikita Bansal, Mr.Keshav Bhajanka, Mr.Ajay Baldawa, Mr.Vishnu Khemani, Mr.Prem Kumar Bhajanka, Mr.Sanjay Agarwal, Mr.Rajesh Kumar Agarwal, Mr.Pramod Agrawal. Company has Singhi & Co. as its auditors. As on 31-03-2025, the company has a total of 22 crore shares outstanding.

Investment Rationale
Century Plyboards (CPBI) reported Q4FY25 consolidated revenue growth of 13% YoY. Plywood/laminates/MDF and allied revenues grew 9.6%/ 1.3%/37.2% YoY with volumes up 6.8%/0.5%/39.2% YoY (6-year CAGRs of 10.2%/2.7% / 16.3%), respectively. Consol. OPM contracted 275bps YoY to 11.2% (-13bps QoQ), resulting in EBITDA/APAT fall of 9.3%/35% YoY. Plywood margin expanded 30bps YoY while laminates’ margin fell 800bps YoY and MDF margin contracted 310bps YoY (due to lower utilisation of AP plant). Management guides for revenue growth of 10%+/20%/20% YoY and OPM of 12-14%/high single-digit/15% in plywood/laminates/MDF for FY26. ICICI Securities cut its EBIDTA estimates by ~6.3-4.1% for FY26-27E and retain HOLD with a rolled over revised Mar’26E target price of Rs 743 ? set at an unchanged 32x PER.

Promoter/FII Holdings
Promoters held 72.64 per cent stake in the company as of 31-Mar-2025, while FIIs owned 4.61 per cent, DIIs 17.59 per cent.