Century Ply Q4 Results Review - Sluggish Demand, Premium Valuations Compel Rating Downgrade: Yes Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Century Plyboards Ltd. reported a moderate growth of 10%YoY and 13% QoQ to Rs 10.6 billion. Operating margins came in at 12.9% versus 17%/11.3% in Q4 FY23/Q3 FY24, respectively. Margins improved on sequential basis largely due to expansion in plywood segment which stood at 15.3% in Q4 FY24 versus 9.5% in Q3 FY24. Overall Ebitda stood at Rs 1.37 billion, a decline of 16%YoY and a growth of 29.4% QoQ. Plywood volume grew by 6.6% YoY & 16% QoQ (two-year CAGR stood at 9.5%), average selling price improved marginally on sequential basis and remained flattish on YoY basis. Hence plywood revenue (57% of total sales), increased by 7%YoY and 18.5% QoQ. Ebitda margins came in at 15.3% versus 15.9%/9.7% in Q4 FY23/Q3 FY24, respectively. Laminates volumes increased marginally by 5%YoY and declined by 2%QoQ (two-year CAGR stood at -2.5%). Laminates sales (16% of revenue) grew by 4% YoY and 3% QoQ. Ebitda margins stood at 10.3% versus 14.1%/12.2% in Q4 FY23/Q3 FY24, respectively. MDF volumes reported stellar growth of 34.4% YoY and 13.6% QoQ while ASP contracted by 8.6% YoY and 7.4% QoQ. Consequently, Ebitda margins declined from 27%/19.2% in Q4 FY23/Q3 FY24, respectively to 16.5%. Particle boards volumes grew by 25% YoY and 14%QoQ, ASP contracted by 9% YoY and improved marginally by 2% QoQ. Margins came in at 19.8% as compared to 18.1%/15.8% in Q4 FY23/Q3 FY24, respectively..Click on the attachment to read the full report:.Century Ply Q4 Results: Net Profit Down 26% To Rs 78 Crore.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Century Ply Q4 Results Review - Sluggish Demand, Premium Valuations Compel Rating Downgrade: Yes Securities

At CMP, the stock trades at demanding valuations of 33 times on FY26E EPS of Rs 19.6 and hence we have assigned a Reduce rating.

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