CENTURYPLY - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | CENTURYPLY | Market Cap | 17,007 Cr. | Current Price | 762 ₹ | High / Low | 897 ₹ |
| Stock P/E | 61.7 | Book Value | 115 ₹ | Dividend Yield | 0.13 % | ROCE | 15.1 % |
| ROE | 12.3 % | Face Value | 1.00 ₹ | DMA 50 | 783 ₹ | DMA 200 | 773 ₹ |
| Chg in FII Hold | -0.18 % | Chg in DII Hold | 0.23 % | PAT Qtr | 72.8 Cr. | PAT Prev Qtr | 67.8 Cr. |
| RSI | 46.1 | MACD | -9.77 | Volume | 17,935 | Avg Vol 1Wk | 45,826 |
| Low price | 630 ₹ | High price | 897 ₹ | PEG Ratio | -14.6 | Debt to equity | 0.29 |
| 52w Index | 49.6 % | Qtr Profit Var | -3.87 % | EPS | 12.4 ₹ | Industry PE | 34.4 |
📊 Financials: Century Plyboards Ltd. has shown moderate profitability with PAT at 72.8 Cr compared to 67.8 Cr previously, though quarterly profit variation is negative (-3.87%). ROE at 12.3% and ROCE at 15.1% indicate average efficiency. Debt-to-equity ratio of 0.29 reflects a healthy balance sheet with manageable leverage. EPS of 12.4 ₹ provides earnings visibility, but growth momentum is slowing.
💹 Valuation: Current P/E of 61.7 is significantly higher than the industry average (34.4), suggesting overvaluation. P/B ratio ~6.62 (Price 762 ₹ / Book Value 115 ₹) is expensive. PEG ratio of -14.6 indicates weak growth prospects relative to valuation. Dividend yield of 0.13% is negligible, offering little income support.
🏢 Business Model: Century Plyboards operates in the building materials sector, focusing on plywood, laminates, and allied products. Competitive advantage lies in brand recognition, wide distribution network, and diversified product portfolio. However, cyclical demand in real estate and construction impacts earnings stability.
📈 Entry Zone: Attractive accumulation zone between 700–730 ₹, closer to DMA200 (773 ₹). RSI at 46.1 indicates neutral momentum, while MACD (-9.77) suggests bearish undertone. Long-term investors should wait for valuation comfort before accumulating.
🔒 Holding Guidance: Fundamentally stable with strong brand presence, but valuations are stretched and profit momentum is slowing. Suitable for long-term holding only if accumulated at lower levels for margin of safety.
Positive
- Healthy balance sheet with low debt-to-equity (0.29).
- Strong brand recognition and diversified product portfolio.
- Institutional confidence with slight DII increase (+0.23%).
Limitation
- High P/E (61.7) compared to industry average (34.4).
- P/B ratio of 6.62 indicates expensive valuation.
- Negative quarterly profit variation (-3.87%).
- Dividend yield of 0.13% offers negligible income support.
- FII holdings decreased (-0.18%), showing cautious sentiment.
Company Negative News
- No major negative news reported, but slowing profit growth and high valuations raise caution.
Company Positive News
- Stable balance sheet with low leverage.
- Strong brand presence in building materials sector.
- Slight increase in DII holdings reflects domestic confidence.
Industry
- Building materials sector benefits from real estate and infrastructure growth.
- Industry P/E at 34.4 suggests moderate optimism.
- Demand cycles tied to construction activity impact earnings stability.
Conclusion
✅ Century Plyboards Ltd. is financially stable with strong brand presence and low leverage. However, valuations are stretched, and profit momentum is slowing. Long-term investors should consider accumulation near 700–730 ₹ for margin of safety, while monitoring demand cycles in real estate and construction.
I can also extend this with a peer comparison against Greenply and other building material companies to highlight relative valuation and efficiency. Would you like me to add that?