Q3FY21 Result Update - Century Plyboards India Ltd - ICICI Direct

Century Plyboard's (CPIL) Q3FY21 performance was highlighted by strong plywood growth coupled with robust MDF division growth and balance sheet strengthening (now a net cash company). The topline was up 9.9% YoY to Rs. 654.4 crore. MDF revenue grew 20.6% YoY to Rs. 116.5 crore while plywood revenues grew 10.6% YoY to Rs. 357 crore. EBITDA margin expanded 280 bps YoY to 18.6% on adjusted basis (10.4 percentage points on reported basis as base quarter had impairment loss), on account of operating leverage. Overall, reported PAT was up 2.4x YoY to Rs. 65.9 crore, given the healthy operating performance and impairment in bases quarter. Adjusted PAT was up 40% YoY.

Valuation & Outlook

CPIL's results are robust with both key divisions of MDF and plywood back to growth trajectory. We are also impressed by a sharp improvement in balance sheet wherein CPIL is now a debt free company. The near to medium term growth outlook commentary remains positive. We roll over our valuations to FY23E and maintain BUY, with a revised target price of Rs. 355/share (24x FY22E EPS) vs. Rs. 230/share earlier.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_CenturyPly_Q3FY21.pdf

Shares of CENTURY PLYBOARDS (I) LTD. was last trading in BSE at Rs.298.75 as compared to the previous close of Rs. 299.9. The total number of shares traded during the day was 23886 in over 763 trades.

The stock hit an intraday high of Rs. 305.75 and intraday low of 296.2. The net turnover during the day was Rs. 7229628.

Source : Equity Bulls

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