I know from experience that Saurabh Mukherjea’s stock recommendations are not meant to be taken lightly. He has a reputation for only picking “good and clean” companies and so you can be sure that your money is safe and sound with his stocks. Saurabh’s debut book “The Gurus of Chaos” (which is recommended by Prof. Sanjay Bakshi) in fact sets out in precise terms what we should look for in a winning stock.
That is why when I learnt that Saurabh has recommended a buy of Century Plyboards, I immediately rushed off an alert: “Don’t Miss Saurabh Mukherjea’s Latest Stock Pick: Century Plyboards”.
I have to compliment myself for the swift action because since Saurabh’s recommendation (10th September 2014), Century Ply is up a fabulous 60% (CMP Rs. 168 vs. Rs. 105).
Now, the good thing is that Sharekhan has also put the spotlight on Century Plyboards. In their latest “initiating coverage” report, Sharekhan has given an in-depth analysis of Century’s functioning and why it merits a buy.
Sharekhan points out that organised plywood and laminate segment is growing at healthy double digits due to an improving demand environment and a shift towards branded products. In this segment, Century Plyboards is a leading player with a share of 25%. Century is expected to grow ahead of the industry, at 22% CAGR, over the next three to five years.
At the end of the elaborate analysis, Sharekhan has concluded that Century Plyboards is a “high-quality consumer play with a dominant market share in a fast growing niche segment”. It says that the stock is expected to command “a premium valuation and outperform the broader market over the long term”. Sharekhan has put the price target at Rs. 200.
You must also take note of the latest interview of Century Ply’s MD and CEO, Sanjay Agarwal. He has hinted that the company is targetting 25% growth for 2015
If you want more information on Century Plyboards, you can also read up their “Investors Presentation” which tells you the entire life history of the Company and how it has richly rewarded investors over the past several decades.
Now, the onus is entirely on you to carefully read up all the positive and negative factors about Century Plyboards and take an informed decision in the matter. You must also bear in mind the inspiring advice given by Vijay Kedia that you must buy stocks with “Vision 2020” in mind (i.e. buy stocks with the intention to hold at least till the year 2020, if not for longer).