Century Plyboards India Ltd. is best placed to garner market share from the formalisation of the Rs 18,000 crore-plywood industry, according to an Angel Broking report. Currently, the company has 25 percent market share, the report said.
Better product quality, stronger brands and wide distribution network will provide a strong backing to the company's market share.
To ensure continued profitability and revenue going ahead, Century Plyboards has added a new plant, along with a range of new laminates and particle boards. Moreover, government schemes like Pradhan Mantri Awas Yojana provide an uptick for the company's demand and profitability picture.
The brokerage also bets on the plywood maker's brand visibility as it spends 3-4 percent of its sales as advertisement expenditure. The company's products spread across 630 cities and towns in the country are boosting the brand's spread even more, the report said..
Century Plyboards' net revenue is expected to grow at a compound annual growth rate of 17 percent over financial years 2017 to 2020. As a result of expected strong revenue, the bottom-line will grow at a CAGR of 16 percent to Rs 30 crore over the same period.
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