The IIFL Securities Report: Buy Century Plyboards (I) - June 18
On June 18, IIFL Securities recommended a "buy" rating for Century Plyboards (I), setting a target price of Rs 765. This represents a potential upside of 4.4% from the current market price of Rs 732. The brokerage cited the company's strong presence in the plywood market, its focus on value-added products, and its expanding distribution network as key factors driving its growth prospects.
About Century Plyboards (I):
Century Plyboards (I) Ltd. is a leading manufacturer and distributor of decorative veneers, laminates, and plywood in India. Incorporated in 1986, the company has a wide product portfolio spanning over 2,500 designs and over 300 shades. Century Plyboards has a strong network of over 80,000 dealers and distributors across the country, and also exports its products to over 60 countries worldwide. The company's manufacturing facilities are located in Punjab, Uttarakhand, and Andhra Pradesh, with a combined annual capacity of over 1 million cubic meters of plywood and 100 million square feet of laminates.
52 Week Price Trend:
Century Plyboards (I) is a leading manufacturer of plywood, laminates, and MDF boards in India. Its current market capitalization is around Rs 4,000 crore. The stock has been trading at Rs 732, which is below its 52-week high of Rs 849.5 and above its 52-week low of Rs 436. The stock has been consolidating in a narrow range for the past few months and is expected to make a breakout soon. Investors can consider buying the stock at current levels with a stop loss below Rs 700 and targets of Rs 800 and Rs 850.
Stratzy's MOST Analysis:
CENTURYPLY has been rated AA- by Stratzy's MOST framework, indicating a Medium Fundamental Risk. This assessment is based on the company's performance in four key areas: Management, Outlook, Safety, and Trend. The company has received high scores in each of these areas, suggesting that it has strong fundamentals and is well-positioned for future growth.
Company's Fundamentals:
Century Plyboards (NSE: CENTURYPLY) exhibits a valuation of 44.85 times its earnings per share (Stock PE), implying its market value is significantly higher than its earnings. The company's price-to-book (PB) ratio of 7.81 indicates its market value is nearly eight times its book value, suggesting a premium valuation. Despite its higher valuations, Century Plyboards offers a modest dividend yield of only 0.14%, which may not be particularly attractive for income-oriented investors.
Fundamental and Technical information provided in this blog were last updated on 18 Jun, 2024
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