Century Plyboards Sees Target Price of Rs 862, Says Prabhudas Lilladher Report

Century Plyboard: Prabhudas Lilladher Maintains Positive Outlook Amid Capacity Expansion Plans

Century Plyboard Industries (CPBI) has chosen to refrain from providing fiscal year 2027 (FY27) guidance due to geopolitical uncertainties and volatile raw material conditions. In response to these challenges, the company has undertaken a price hike of 7% in the plywood segment and 15% in the MDF segment. Currently, CPBI's plywood plants are operating at near full utilization, prompting the company to pursue a ~30% capacity expansion in FY27 through a combination of brownfield additions across existing facilities and the commissioning of the Hoshiarpur plant. Meanwhile, the Chennai expansion is expected to be completed by July 2026.

Capacity Expansion Plans to Drive Growth

Plywood production is expected to drive growth, with CPBI undertaking debottlenecking at the South MDF plant to add ~60,000-70,000 cubic meters (CBM) capacity by the end of the first quarter of FY27. MDF utilization currently stands at ~80-85%, indicating a significant increase in production capacity in the coming months.

Read also: Oshea Herbals Aims for Rs 650 Crore Revenue Amidst Expansion Efforts

Earnings Estimates and Rating Revision

Prabhudas Lilladher expects overall Revenue/EBITDA/PAT compound annual growth rate (CAGR) of 14.4%/20.9%/27.4% with Plywood/Laminate/MDF volume CAGR of 12.0%/12.1%/17.1%. In light of the recent run up in stock prices, the research firm has upward revised earnings estimates for FY27/FY28 by 1.6%/1.3% and downgraded its rating to 'Accumulate' from 'BUY'. The target price for CPBI has been set at Rs 862, valuing the company at 35x Mar'28E earnings.