Century Plyboards (India) Ltd. share price target

Century Plyboards (Century) is present across the entire gamut of wood panel productsplywood, MDF, particleboard, laminates, veneers, etc.

Century Plyboards (I) Ltd.'s (CPIL) Q2FY18 result was below our expectation. The company reported 4.3% YoY decrease in sales while EBITDA and PAT were down by 1% and 17.9% respectively over Q2FY17. Higher GST rate for plywood at 28% affected sales of plywood division, while growth in laminates division aided overall earnings.

ICICI Securities Ltd | Retail Equity Research Century Plyboards' (CPIL) topline grew 3.3% YoY to | 474.2 crore and was in line with our estimate of | 482.8 crore The EBITDA margin declined 90 bps YoY to 15.6% (our expectation: 15.1%) mainly on account of 190 bps contraction in EBIT margin of plywood & allied products division to 13.2% (our estimate: 12.0%) Net profit declined 18.5% YoY to | 40.1 crore (our estimate: | 43.6 crore) mainly on account of EBITDA margin contraction and higher...

MDF to lead FY17-20E growth given shift from lower end plywood to MDF: MDF is expected to remain one of the fastest growing (15-20%) wood panel product with pricing differential of MDF vs. cheap plywood (low at ~10-12%) and with better durability & newer applications,. Additionally, capacity constraint of existing players in North India will provide CPL with an opportunity given its strong distribution network and brand awareness to ramp up its production and gain market share in a fast growing category. We expect CPL to achieve 85% utilization levels in MDF by FY20E and thus volumes/revenues are expected to grow at...

Century Plyboards (I) Ltd.'s (CPIL) Q1FY18 result was a mixed bag. The company reported 8.7% YoY increase in Net sales while EBITDA and PAT were down by 19.7% and 18.5% respectively over Q1FY17. Despite weak Q1FY18 results, the management has guided for healthy volume growth led by capacity expansion and GST implementation will aid higher sales volume as demand will shift from non-branded to branded products.

Plywood & allied division revenues grow 10.7% YoY to | 317.0 crore Plywood & allied division reported strong revenue growth of 10.7% YoY to | 317.0 crore largely led by volume growth of 11.8% YoY to 52011 CBM. However, plywood division margins fell 300 bps YoY to 12.9% due to higher raw material (veneer, timber, glue etc) costs. We expect...

Century Plyboards (I) Ltd.'s Q4FY17 result was inline with our estimates. The company reported 9% yoy increase in net sales. Higher raw material cost and increase in operating expenses weighed on operating margin improvement. Lower interest cost supported PAT growth of 34.8% yoy. The management has guided strong volume growth primarily led by capacity expansion in MDF and laminates segment.

Century Plyboards' (CPIL) topline grew 9.3% YoY to | 488.5 crore (our estimate: | 469.7 crore) due to 8.8% YoY growth in plywood & allied division to | 348.8 crore & 6.7% YoY growth in laminates & allied division to | 98.5 crore EBITDA margin expanded 14 bps YoY to 17.1% (our estimate: 16.8%) due to 410 bps margin expansion in plywood & allied division PAT grew robustly by 34.5% YoY to | 55.9 crore (our expectation: | 43.5 crore) despite higher effective tax rate due to higher other...

Century Plyboards (I) Ltd. (CPIL) reported healthy Q3FY17 results primarily led by volume growth in plywood and laminates division. The company reported 11.7% yoy increase in net sales. EBITDA marginally improved by 1.5% yoy on account of lower raw material cost and operational cost optimisation. However, higher depreciation weighed on the net profitability of the company.