Century Plyboards (India) Ltd. share price target

With more than 25% market share in the organised plywood market, Century is one of the leading manufacturers of plywood in India. They also manufacture laminates, particle boards, fibre cement boards and engineered doors. CPBI currently has 7 manufacturing units across India with 30 marketing offices and dealer distribution network of 1500 dealers and 15000 retailers. The company forayed in to the MDF segment in FY18 given the growth opportunity in the industry (from Rs 18bn in 2018 to Rs 30bn in 2022), low Plywood:MDF penetration levels of 94:06 in India versus 64:36 globally, rising...

Century Plyboards (India) Ltds (CPIL) standalone Q2FY19 numbers were disappointing, especially on the profit front. Net revenue increased by 18.9% YoY, mainly led by incremental sales from MDF division. However, EBITDA growth stood flat with 245bps YoY contraction in EBITDA margins, while PAT declined by 5.8% YoY, impacted by significant margin decline in Laminates & MDF segment.

Century Ply has reported a weak quarter after 2 strong quarters.

ICICI Securities Ltd | Retail Equity Research Century Plyboards' (CPIL) topline grew 18.9% YoY to | 564.4 crore (our estimate: | 580.3 crore) mainly led by MDF division revenues (| 61.3 crore in Q2FY19 vs. | 0.1 crore in Q2FY18) EBIT margins contracted 154 bps YoY to 11.2% (our expectation: 12.7%) mainly as the company reported losses in the MDF division at EBIT level (-| 0.5 crore vs. | 4.7 crore in Q1FY19) PAT de-grew 5.8% YoY to | 37.8 crore (our expectation: | 43.0 crore)...

Century Plyboards (India) Ltd's (CPIL) standalone Q1FY19 numbers were in line with our estimates. Net revenue increased by 22.5% YoY, led by incremental sales from MDF division and healthy growth in the Laminates segment. EBITDA & PAT margins expanded by 219bps & 67bps YoY respectively, aided by margin improvement in Plywood & CFS segment and a sharp decline in the depreciation cost.

Century Ply has reported a strong quarter with sales at INR 537 cr growing 22% YoY and in line with our estimates.

Century Plyboards reported better-than-expected profitability for Q1FY19 mainly on profit beat from Plywood segment. Century's net sales at Rs54 bn was slightly below our forecast. Nevertheless, EBITDA at Rs871 mn was 15.8% above our forecast. The company changed the method of charging depreciation to Straight Line (WDV earlier). This led to sharp fall in depreciation expense for the quarter to Rs108mn (-17.9% YoY, -60.9% QoQ) leading to net profit beating our forecast by 61.5%. Century guides for 20-25% top-line growth with EBITDA margin of 19.0% during FY19. We believe this is achievable with steady ramp-up of MDF plant during FY19. We raise...

Century Plyboards' (CPIL) topline grew 22.5% YoY to | 537.3 crore (our estimate: | 545.5 crore) mainly led by MDF division revenues (| 69.9 crore in Q1FY19 vs. | 0.6 crore in Q1FY18) EBIT margin expanded 320 bps YoY to 14.1% (our estimate: 11.5%)...

For 4QFY2018, Century Plyboards Ltd. (CPIL) underperformed both on the top line and bottom line front. Total revenue for the quarter remained flat at `544cr compared to `526cr for the year ago period. Operating margin contracted by 60bps on account of increase in raw material cost. On the bottom line front, CPIL reported a decline of ~36%..

Century Ply has reported poor numbers in this quarter due to pain across segments. Sales at INR 544 cr grew by 11% YoY.