CENTURYPLY - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.5

📈 Positive

• 💼 Moderate debt level (Debt-to-equity: 0.30) allows financial flexibility without excessive leverage.
• 📊 ROCE of 15.1% and ROE of 12.3% reflect decent capital efficiency in a competitive sector.
• 📈 DII holding increased by 0.21%, indicating growing domestic institutional confidence.
• 📉 Trading near DMA200 (₹759), offering technical support zone for potential entry.

⚠️ Limitation

• 📉 High P/E of 60.1 compared to industry average (47.4), suggesting overvaluation.
• 📉 Negative PEG ratio (-14.2) implies earnings contraction or unreliable growth expectations.
• 📉 Low dividend yield of 0.13% offers minimal passive income.
• 📉 Quarterly PAT declined by 8.24%, signaling margin pressure or demand slowdown.

📰 Company Negative News

• 📉 FII holding dropped by 0.15%, indicating reduced foreign investor interest.
• 📉 MACD at -10.7 and RSI at 45.4 suggest weakening technical momentum.

🌟 Company Positive News

• 📈 Volume above 1-week average indicates rising investor activity.
• 📈 Stable PAT of ₹67.8 Cr. despite sectoral headwinds shows operational resilience.

🏭 Industry

• 🪵 Century Ply operates in the building materials segment, primarily plywood, laminates, and MDF boards.
• 📊 Industry P/E of 47.4 reflects moderate growth expectations and cyclical exposure to real estate and infrastructure.

🧭 Conclusion

• 📌 Suggested entry zone: ₹700–₹730, below DMA50 and near support levels.
• 🕰️ Long-term holding viable for investors seeking exposure to housing and infrastructure growth, but valuation and earnings trend should be monitored.
• ⚖️ Watch for margin recovery and volume sustainability before aggressive accumulation.