Result Update: CENTURY PLYBOARDS LTD - BUY - TP Rs.277 - Kotak

Results overview: Revenues for Q4FY17 were ahead of our estimates and were led by healthy 12.3%YoY improvement in laminates volume and 3.1% YoY improvement in plywood volumes division. Laminates realization was under pressure, plywood realization stood flat while commercial realization witnessed a sharp improvement. Operating margins stood strong. Strong margins and lower than expected interest expense led to net profits coming ahead of our estimates. Company's new MDF plant is likely to commission by July, 2017.

We maintain our FY18 estimates and also roll forward our valuations on FY19. We arrive at a revised price target of Rs 277 based on 23x FY19 estimates. We remain positive on the company as we expect it to benefit from demand revival and GST implementation going forward. Owing to adequate upside from current levels, we recommend BUY on the stock. (ACCUMULATE earlier)

Shares of CENTURY PLYBOARDS (I) LTD. was last trading in BSE at Rs.259 as compared to the previous close of Rs. 253.35. The total number of shares traded during the day was 14875 in over 341 trades.

The stock hit an intraday high of Rs. 261 and intraday low of 253.5. The net turnover during the day was Rs. 3840432.

Source : Equity Bulls

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