Mehabe score: 5 G Factor: 2 Piotski Score: 6 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 2 and Piotski score of 6.
Description
Century Plyboards India Ltd was incorporated in January 1982 by Mr. Sajjan Bhajanka and Mr. Sanjay Agarwal. The company has a diversified portfolio & manufactures plywood, veneer, laminates, medium density fibre (MDF), particle board and allied products. #
Main Points
Largest player of Plywood in India
The company is the leading manufacturer and supplier of plywood with 25% market share in the organised plywood market of India. # The Indian plywood industry is dominated by unorganised players, which account for around 70% of the total plywood market. #Site:CENTURYPLY
Market Cap:
Rs 9,128 cr
Price:
411.0
Trading pe:
64.4x
Book-value:
50.2/share
Div yield:
0.24 %
Earning yield:
2.21%
Face-value:
1.00/share
52week high:
447.40
52week low:
101.45
Technical Analysis
Stock trades at 411.0, above its 50dma 364.45. It also trades above its 200dma 276.55. The stock remains bullish on techicals
The 52 week high is at 447.40 and the 52week low is at 101.45
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Debtor days have improved from 50.73 to 40.46 days.
Weakness
– Stock is trading at 8.18 times its book value
-The company has delivered a poor sales growth of 7.84% over past five years.
Competition
– The industry trades at a mean P/E of 28.7x. Jubilant Ingrevia trades at the industry’s max P/E of 139.01x. CENTURYPLY trades at a P/E of 64.4x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 9.0. CENTURYPLY has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 12.3%. The max 1- month return was given by Jubilant Ingrevia: a return of 26.1 %
Quarterly Results
Sales for period ended Dec 2020 is Rs 660.0 cr compared to Rs 605.0 cr for period ended Dec 2019, a rise of 9.1%
Operating Profits reported at Rs 112.0 cr for period ended Dec 2020 vis-vis 33.0 for period ended Dec 2019 .
Operating Margins expanded 1151.5 bps for period ended Dec 2020 vis-vis Dec 2019 .
The EPS for Dec 2020 was Rs 2.96 compared to Rs 2.26 for previous quarter ended Sep 2020 and Rs 1.12 for Dec 2019
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1916.0 cr for period ended TTM vis-vis sales of Rs 2317.0 cr for the period ended Mar 2020, a fall of 20.9%. The 3 year sales cagr stood at -1.8%.
Operating margins expanded to 14.0% for period ended TTM vis-vis 12.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 142.0 cr for period ended TTM vis-vis sales of Rs 151.0 cr for the period ended Mar 2020, falling 6.3%.
Company reported a poor Net Profit CAGR of -4.5% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 400.0 cr for period ended Mar 2020 vis-vis Rs 266.0 cr for period ended Mar 2019
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 15.0% compared to 17.0% over the last 3 Years. – The stock has given a return of 273% on a 1 Year basis vis-vis a return of 16% over the last 3 Years. – The compounded sales growth on a TTM bassis is -19% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is -16% vis-vis a compounded profit growth of -8% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 4.8% vis-vis 4.68% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 9.8% vis-vis 10.16% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
-Debtor days have improved from 50.73 to 40.46 days. – Stock is trading at 8.18 times its book value
-The company has delivered a poor sales growth of 7.84% over past five years.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 364.45 and is trading at 411.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
