Century Plyboards - Near-Term Demand Headwinds: ICICI Securities

ICICI Securities Report

We recently interacted with the management of Century Plyboard India Ltd. who indicated that demand has been tepid Q3-to-date with December 2022 likely to be the decisive month for the quarter.

Medium density fibre brownfield expansion at Hoshiarpur (Punjab) is likely to be commissioned by end-Dec-22 (earlier guidance was Nov-22) and management expects to start its ramp-up from mid-Q4.

Company has taken no material price increases across segments in Q3-to-date as raw material pressures (except for wood used in MDF) have abated.

Management indicated that the Q2 blended margins (~17%) are sustainable in the near term.

Company had guided for more than 20% YoY revenue growth in FY23 (implying H2 FY23 growth of ~5% YoY), which we believe is achievable. We tweak our estimates for FY23E-FY25E by 2%-3% respectively.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.