Century Plyboard Stock: HOLD Maintained, Target Raised! Growth Forecasts Revealed!

Author

Satyam Jha | Whalesbook News Team

Detailed Coverage:

Prabhudas Lilladher has released a research report on Century Plyboard India Limited. The report projects robust revenue growth for FY26: Plywood (13%+), Laminate (15-17%), MDF (25%), and Particle Board (40%). Expected EBITDA margins for these segments are 12-14% (Plywood), 8-10% (Laminate), 15% (MDF), and low single digits (Particle Board). Plywood segment is expected to see sustained healthy volume growth. The Particle Board segment's Q2FY26 sales were affected because trial-run production revenue was capitalized, not reported. Overall, the report forecasts Compound Annual Growth Rate (CAGR) of 14.3% for revenue, 22.7% for EBITDA, and 40.4% for PAT for FY25-FY28E. Volume CAGRs are projected at 13.0% for Plywood, 11.3% for Laminate, and 18.1% for MDF. Impact Rating: 6/10 The report's upward revision of earnings and maintained 'HOLD' rating with an increased price target suggest positive sentiment for Century Plyboard India Limited. Investors will monitor the execution of these growth projections. Difficult Terms EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It represents a company's operating profit before accounting for financing costs, taxes, and non-cash expenses. PAT: Profit After Tax. This is the net profit remaining after all expenses, including taxes and interest, have been deducted. CAGR: Compound Annual Growth Rate. The average annual growth rate of an investment over a specified period of time, assuming profits were reinvested. Trial-run production: Initial production runs in a manufacturing facility to test equipment, processes, and product quality before full-scale commercial production begins. Capitalized: In accounting, an expenditure that is recorded as an asset on the balance sheet rather than being expensed immediately on the income statement. In this context, revenue from trial runs was treated as an asset development cost.