Century Plyboards Initiating Coverage Research Report By ICICI-Direct

Century Plyboard (India) (CPIL) is India’s leading plywood player with the largest plywood capacity and enjoys ~23-30% share of the country’s organised plywood market (~25-30% of total plywood market). With a pan-India distribution network and security over raw materials, CPIL is likely to benefit from the structural shift towards the organised pie (currently stands at ~Rs. 3500-4500 crore) on account of the rollout of GST and Myanmar’s ban on timber export. Consequently, we anticipate CPIL’s earning will grow exponentially at 52.0% during FY14-17E. We initiate coverage on CPIL with a BUY recommendation and a target price of Rs. 254 (24x FY17E EPS, implying a PEG of 0.5x).

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