CENTURYPLY - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.8

📊 Core Financials

Earnings & Profitability: EPS of ₹12.5 and quarterly PAT of ₹67.8 Cr (down 8.24%) show stable but slightly declining performance.

Return Metrics: ROCE at 15.1% and ROE at 12.3% are decent, though not exceptional for a high-P/E stock.

Debt Profile: Debt-to-equity of 0.30 is moderate and manageable, indicating financial prudence.

Cash Flow: Not explicitly stated, but consistent earnings and moderate debt suggest healthy operating cash flows.

💰 Valuation Indicators

Metric Value Insight

P/E Ratio 64.0 Expensive vs. industry average (48.8)

P/B Ratio ~7.28 High premium over book value

PEG Ratio -15.1 Negative PEG suggests declining growth

Dividend Yield 0.12% Minimal income play

Valuation is stretched, especially given the negative PEG ratio and declining quarterly profits.

🏭 Business Model & Competitive Advantage

Century Plyboards is a leading manufacturer of plywood, laminates, MDF, and decorative veneers. Its strengths include

Strong brand equity and wide distribution

Diversified product portfolio across construction and interior segments

Innovation in eco-friendly and fire-retardant products

However, the company faces margin pressure due to raw material costs and competitive pricing in the building materials sector.

📈 Technical & Sentiment Indicators

RSI: 64.4 – Approaching overbought territory.

MACD: 17.9 – Bullish momentum.

Volume Weakness – Current volume is significantly below weekly average, indicating reduced trading interest.

DMA 50 & 200: Current price is above both, signaling short-term strength.

💡 Investment Strategy

🔽 Entry Zone

Ideal Buy Range: ₹740–₹760, near DMA 50 and below current price.

Current Price ₹801: Slightly above ideal entry, not deeply undervalued.

🕰️ Long-Term Holding

Hold if already invested: Solid brand and moderate debt make it a stable long-term play.

Wait for dips if new investor: Valuation is high and growth momentum is softening—better to enter on correction.

Let me know if you'd like a peer comparison with Greenply or a forecast model for FY26.

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