Century Plyboards (India) Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Century Plyboards' (CPIL) Q3FY17 results were above our estimates on all fronts despite demonetisation Topline grew 8.8% YoY to | 422.9 crore (our estimate: | 359.1 crore) due to 13.6% YoY growth in plywood & allied division to | 300.5 crore & 13.3% YoY growth in laminate & allied division to | 87.2 crore EBITDA margin contracted 122 bps YoY to 16.7% as the company had provided certain discounts to dealers post demonetisation...

Century Plyboards' (CPIL) topline grew 5.5% YoY to | 459.3 crore (our estimate: | 459.0 crore) on the back of 10.7% YoY growth in laminate & allied division revenues to | 97.9 crore EBITDA margins fell 52 bps YoY to 16.4% (our estimate: 17.5%) PAT grew 5.1% YoY to | 49.3 crore below our estimate of | 52.0 crore due to higher-than-expected depreciation expense (| 12.6 crore in Q2FY17 vs. our expectation of | 10.0 crore) Plywood division revenues flat in Q2FY17...

Century Ply with its strong brand equity, vast distribution reach and end-to-end product portfolio is better placed to garner market share from unorganised players. Introduction of GST can provide further momentum to the shift.

ICICI Securities Ltd | Retail Equity Research Century Plyboard's (CPIL) revenues grew 11.7% YoY to | 405.8 crore and was broadly in line with our estimate of | 401.8 crore on the back of 11.7% YoY growth in revenues of plywood and allied segment to | 286.6 crore. However, revenues of laminates & allied division were subdued with a 3.4% YoY growth to | 79.5 crore The EBITDA margin contracted 133 bps YoY to 16.8% (vs. our expectation: 18%) mainly due to contraction of 210 bps in the EBIT...

In-line results: CPBI posted revenue growth of 10% YoY to INR4,058m (our est: INR4,043m). Revenue growth was 12% YoY for plywood and allied products, 3% YoY for laminates and allied products, and 35% YoY for the logistics business. EBITDA was INR683m (our est: INR736m); EBITDA margin contracted 140bp YoY to 16.8% (our est: 18.2%). EBITDA margin was 16% for plywood (v/s 18% in 1QFY16), 16.6% for laminates (v/s 17.5% in 1QFY16), and 44% YoY for the logistics business (v/s 44% in 1QFY16). PAT grew 7.3% YoY to INR431m (our estimate: INR413m). 12.5% volume growth in plywood amid tough environment: Growth was mainly...

ICICI Securities Ltd | Retail Equity Research Century Plyboard's (CPIL) topline grew 11.4% YoY to | 451.2 crore above our expectation of | 412.3 crore on the back of higher-thanexpected growth in revenue from plywood division, which grew...

Brand conviction of durability: Century Plyboards India Ltd. (CPIL) came intoexistence in 1986. It is a leading manufacturer and supplier of quality plywood, laminate sheets, marine wood, Medium Density Fiber (MDF) boards and veneer wood. The prominent brands in plywood include CenturyPly Club Prime, Architect and CenturyPly Marine; Slimline and Opulenza are popular brands in laminates.

Century Ply is one of the largest sellers of plywood and decorative veneers in the Indian organized plywood market, catering to both residential as well as commercial consumers. It commands a 25% share in the organized market for plywood and is among the top 3 laminate producers in the country. The company is integrated with 6 manufacturing units spread across India & one in Myanmar (only Veneer). Over the last 18 months the company has readied new capacities in the wake of demand arising out of healthy macro trends in building & construction sector; governments 2020 Vision of Housing for All; and the expected rollout of GST which would lead to the market share moving from unorganized to organized....