Century Plyboards — Top Stock Pick By HDFC Securities In Building Material Sector; Q1 Results Preview

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HDFC Securities Institutional Equities

We anticipate recovery in plumbing demand in FY26, driven by the normalization of channel inventories and a resurgence in government spending. However, resin prices are not yet to stabilize, it has corrected at July start.

We believe that Morbi remains a structural challenge to the tiles industry, as its practice of volume dumping in the domestic market is expected to persist. Therefore, we are projecting single-digit volume growth for both tiles players in FY26 and FY27.

Our channel check suggests tiles players have announced price hikes recently. We expect good volume growth for wood companies, supported by robust real estate sales observed in the past few years.

We are maintaining our existing ratings on all the stocks under our coverage. Century Plyboards remains our top pick within the sector.

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