Century Plyboards Research Report by Ambit Capital

Timber products (another segment of home building materials which is witnessing rising demand) has a large addressable market, and consumer preference in this segment is shifting to branded products. Century Plyboards, with its enhanced capacities and strong pan-India brand/distribution network is set to be a leading franchise for years to come. Improved management bandwidth and security around critical raw materials will render long-term stability to the business. We expect the company to deliver 52% EPS CAGR over FY14-16 backed by volume traction and margin expansion. We initiate coverage with a BUY; it is trading at 12.0x FY16 EPS and our TP of `133 implies 16.5x FY16 EPS.

Download ambit capital century plyboards sept 2014