CENTURYPLY - Investment Analysis

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

Investment Rating: 2.4

🧾 Fundamental Analysis

Century Plyboards shows signs of overvaluation and weakening profitability. Here's how the key metrics stack up

Metric Value Implication

Market Cap ₹16,292 Cr Mid-cap; decent scale but not immune to volatility

Stock P/E 84.3 Very expensive; far above industry PE of 48.1

PEG Ratio -5.67 Negative PEG due to declining earnings; red flag

ROCE / ROE 10.4% / 8.45% Below average; weak capital efficiency

Dividend Yield 0.14% Very low; not attractive for income investors

Debt-to-Equity 0.67 Moderate leverage; manageable but not ideal

EPS ₹8.34 Weak earnings base relative to price

Qtr Profit Var -33.1% Significant decline; earnings under pressure

FII/DII Holding Change -0.18% / +0.33% Mixed institutional sentiment

📉 Technical Analysis

Current Price: ₹732

DMA 50 / DMA 200: ₹741 / ₹748 → Trading below both; bearish to neutral trend

RSI: 46.0 → Neutral zone; no strong momentum

MACD: -3.35 → Mild bearish signal

Volume: Below average; weak conviction

💰 Valuation & Entry Zone

Given the high P/E, negative PEG, and declining profitability, this stock is not a strong candidate for long-term investment at current levels.

Ideal Entry Zone: ₹630–₹670

This range aligns with recent lows and offers a better margin of safety if fundamentals improve

Avoid fresh entry above ₹700 unless earnings growth resumes.

📈 Long-Term Investment Outlook

Pros

Recognized brand in building materials

Moderate debt levels

DII interest increasing

Cons

Overvalued (P/E 84.3, PEG negative)

Weak ROE and ROCE

Declining profits

Low dividend yield

Unless there’s a turnaround in earnings and margin expansion, long-term returns may be muted.

🏁 Exit Strategy / Holding Period

If you already hold this stock

Short-Term: Consider exiting on any bounce toward ₹780–₹800

Medium-Term: Hold only if earnings stabilize and ROE improves >10%

Long-Term: Reassess if PEG turns positive and P/E drops below 50

Exit fully if price crosses ₹850 without earnings support, or if profit decline continues for 2+ quarters.

Would you like a comparison with peers like Greenply or other building material stocks to evaluate alternatives?

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