CENTURYPLY - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Analysis: Century Plyboards (CENTURYPLY) Fundamental Rating: 3.2

📋 Core Financials Overview

Profitability Trends

PAT fell from ₹58.4 Cr to ₹52.5 Cr ➜ decline of 33.1% Q-o-Q, signaling possible margin compression or demand softening.

EPS of ₹8.34 appears modest, especially relative to current market price.

Efficiency Metrics

ROE: 8.45%, ROCE: 10.4% ➜ moderate returns, below ideal benchmarks for manufacturing.

Balance Sheet Health

Debt-to-equity at 0.67 ➜ not alarming but signals medium leverage.

Dividend yield at 0.14% ➜ low payout; may be conserving for growth or capex.

📈 Valuation Breakdown

Metric Value Interpretation

P/E Ratio 84.3 Extremely high — expensive for current earnings

P/B Ratio ~6.9 (732 ₹ / 106 ₹) ➜ rich valuation

PEG Ratio -5.67 Negative PEG indicates earnings contraction

Industry PE 48.1 Trading significantly above sector average

🔍 Conclusion: Valuation metrics suggest strong overvaluation, especially given declining profit.

🪵 Business Model & Competitive Position

Century Ply is one of India’s leading manufacturers in plywood, veneers, laminates, MDF, and particle boards.

Competitive edge: Brand strength, distribution reach, and product range.

Subject to housing and construction cycles, where headwinds can impact growth.

Institutional trend

FII: -0.18% ➜ mild selling pressure.

DII: +0.33% ➜ some domestic accumulation.

📉 Technical Signals

RSI: 46.0 ➜ neither oversold nor overbought—neutral.

MACD: -3.35 ➜ weak momentum, potential continuation of downtrend.

Trading slightly below DMA 50 & DMA 200 ➜ short-term caution warranted.

✅ Suggested Entry Zone: ₹660–₹690 🔍 Look for clearer signs of bottoming or demand resurgence before accumulating.

🧭 Long-Term Holding View

Hold if

You believe in long-term urbanization and real estate growth.

Management is likely to improve margin structures and return ratios.

You're comfortable riding out cyclical dips in demand.

⚠️ Caution on valuations — better opportunities may arise post correction or during volume breakout.

Want a head-to-head comparison with Greenply or Action Tesa? I’ll line it up for you.

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