Century Plyboard Ltd - Q4 FY21 Result Update - YES Securities

(Rating: BUY, TP: Rs459, Upside: 10%)

- Though the second wave of COVID-19 is likely to impact the performance in Q1FY22, we reckon demand to bounce back with re-opening of economy. With capacity addition in MDF division, the revenues of MDF should grow by 39% over FY21-FY23E. Laminates/Plywood are expected to report topline growth of 19.2%/19% respectively over FY21-FY23E. Owing to which, we believe company's total sales to increase by 21.4% over FY21-FY23E to Rs31,376mn.

- With topping-out of raw material prices coupled with higher operational efficiencies, CPBL's operational margins are expected to expand to 18.5%/19.7% by FY22E/FY23E from 15.7% in FY21. This should lead to EBITDA growth of 35.8% over FY21-FY23E.

- We continue to remain positive on company's growth in coming years and reckon that all segments should register strong growth. We believe Revenue/EBITDA/PAT to grow by 21.4%/35.8%/46% over FY21-FY23E. We have revised our multiple on stock from 23.5x to 25x on FY23E EPS of Rs18.3, arriving at a target price of Rs459/share translating into 10% upside from current levels. Hence, we maintain our BUY rating on the stock.

Shares of CENTURY PLYBOARDS (I) LTD. was last trading in BSE at Rs.414.15 as compared to the previous close of Rs. 419. The total number of shares traded during the day was 29108 in over 2104 trades.

The stock hit an intraday high of Rs. 425 and intraday low of 411.2. The net turnover during the day was Rs. 12100594.

Source : Equity Bulls

Keywords