Century Ply is one of the most well-known brands in the Indian plywood & laminate industry. Along with Greenply, they share the market leadership in the organised ply business. The overall organised sector is growing 20-25% CAGR. Organised sector is 30% of the overall plywood sector.
Financials
Market Cap.: 3,884.85 Cr.
Current Price: 174.60
Book Value: 19.13
Stock P/E: 23.57
Dividend Yield: 1.14%
RoA: 22.67%
RoE: 44.32%
RoCE: 29.27%
Debt/equity: 1.30
Dividend Payout Ratio: 29.46%
Price/Book Value: 9.13
Sales growth 5 Years: 17.19%
Profit growth 5 Years: 13.08%
OPM: 18.37%
NPM: 9.64%
Promoter holding: 73.34%
Business Overview
Century ply is in the following businesses:
- Plywood
- Laminates
- Furniture Retail
- Container Freight Service
The company has 7 manufacturing units located in Joka (West Bengal), Guwahati (Assam), Kandla (Gujarat), Chennai (Tamil Nadu), Karnal (Haryana), Roorkee (Uttarakhand) and Myanmar. The Myanmar and Roorkee units operate through subsidiaries.
Its container freight stations in two locations near the Kolkata Port are spread across an area of 1 lac square metres (capacity to handle 160,000 TEUs)
Its marketing infrastructure comprises 35 marketing offices and depots, six regional distribution centres and more than 1500 dealers & retail outlets. The company spends 4% of revenues on promotional activities to build brand.
Laminates
• Avg realizations increased from 639 Rs/sheet to 679 Rs/sheet
• Running at full capacity across plants. Cannot cope up with demand.
• 3rd largest laminate producer in the country
• Production capacity of laminates – 4.8 mn sheets p.a.
Plywood
• 25% share of organised plywood market
• Established 32,000 CBM face veneer plant in Myanmar
• Exploring setting up face veneer facility in Laos (Cambodia)
• Ventured in MDF space
• Production capacity of plywood – 210,000 cbm p.a.
Furniture Retail
• Ventured in branded furniture retail
CFS (Container Freight Services)
• Looking at adding more stations in addition to the one at Kolkata Port.
• Expected to grow at 25% CAGR
Growth Levers
GST & its impact
• Remove inter-state tax anomalies
• Remove differential with unorganized sector hence a value migration from unorganized to organized players
Other growth levers
• Home renovation cycle is declining
• India’s per capita income rising along with disposable income
• Rising urbanisation and aspiration levels amongst people
• Govt focus on “Housing for All” — Rs 22,407 crores allocated by FinMin for 2015 to create 6 cr (2 cr urban + 4 cr rural) complete houses by 2022
• Focus by HFCs on Tier-2, Tier-3 locations
| Subscribe To Our Free Newsletter |
