Century Plyboards Initiating Coverage Report By Sharekhan

A leading player in a fast growing niche space: Century Plyboards (Century) is a leading player in the fast growing plywood and laminate segment, with an overall
share of 25% of the organised plywood market, which is estimated at Rs4,500-4,800 crore. The organised plywood and laminate segment is growing at healthy double
digits due to an improving demand environment and a shift towards branded products. Century has the advantage of a strong brand equity, wide distribution network and a manufacturing presence in the timber-rich region of Myanmar. We believe it can grow ahead of the industry, at 22% CAGR, over the next three to five years.

Quality consumer play with strong growth outlook; Buy: Century is a high-quality consumer play with a dominant market share in a fast growing niche segment. Consequently, we expect the stock to command a premium valuation and outperform the broader market over the long term. We initiate coverage on the stock with a Buy rating and price target of Rs200.

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