Century Ply Research Report Of Motilal Oswal (45% Upside)

Valuation and view: With brand leadership in a duopoly market coupled with minimal penetration of organized players, we believe CPBI is well placed to capture the strong growth potential of India’s plywood and laminates markets. Given the improving return ratios (26% RoCE in FY15; expected to reach 31% by FY17), strong EPS growth (20% CAGR over FY15-17) and strong medium-term growth visibility, we believe CPBI deserves multiples in line with similar building product leaders. Maintain Buy. Our target price is INR250 (25x FY17E EPS).