Century Plyboards
Why Buy?
x CMP: 260.35 x PE: 36.93
n Century Ply is also engaged in the
*As on 26 June 18
Plywood Industry
Rides On Policy Change
An organised industry looks to face GST
challenges says Yagnesh Kansara
200
housing to benefit the company
Watch Out for
n Higher GST rate may hamper
company’s growth
n Competition from the unorganised
sector and cheap imports to adversely
impact sales and profitability
162.26
Financials
Net sales (` crore)
FY18
150
logistics business
n Government policies on mass
FY17
100
129.02
FY16
2,082
1,819
1,641
OP (` crore)
FY18
50
BSE Sensex
Century Plyboards
0
FY17
FY16
1 Jan 2015
T
Source : BSE India
he Plywood industry is
becoming organised from
an unorganised sector.
The biggest beneficiary
of this change is Century Plyboards
India Ltd. It has a 25 per cent market
share in the country’s organised
sector and has a significant exports
turnover. It exports its premium
products to more than 20 countries.
It is also engaged in India’s fast-
growing logistics business through
the management of container freight
stations (India’s first privately-owned
CFS at the Kolkata Port).
The company has a wide network
of retailers and distributors covering
over 630 cities and townships across
the country. Over the last few years,
the company has invested heavily
in manufacturing capability and has
emerged as a dominant player in
both plywood and laminates. It has
increased plywood capacity by 42
26 Jun 2018
per cent in the past six years and has
doubled its laminate capacity in the
past five years.
Apart from being a market leader
in a rapidly growing organised
market, the investment rationale to
buy the stock is that the company is
going to be the biggest beneficiary
of the goods and services tax (GST).
There is hardly any price differential
of the end product between the
organised and the unorganise