Century Plyboards Q1 Results Review - Weak MDF Realisations Drag Margins: IDBI Capital

IDBI Capital Report

Century Plyboards India Ltd.'s Q1 FY25 operating profitability was below our and street estimates. Revenue increased by 10.5% YoY to Rs 9,522 million, driven by Plywood segment (+14.2% YoY) and MDF (+25.3% YoY) due to robust volume growth, despite weak realisation across segments.

Ebitda margins contracted by 211 basis points YoY to 12.5% due to increased input costs and a sharp decline in MDF realizations. Additionally, the company commenced commercial production of MDF, laminates, and PVC boards at Century Panel Badvel plant.

Going ahead, growth (except plywood segment) will be driven by new capacities, with gradual ramp up of these new capacities expected from Q2 FY25 onwards.

We cut FY25E EPS forecast by 9% and value the stock at a PER of 31 times FY26E EPS to derive a target price of Rs 683 (earlier Rs 606). We maintain our Hold rating on the stock.

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