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Check Before You Invest : Century Plyboards (India) Ltd

BSE: 532548 NSE: CENTURYPLY ISIN: INE348B01021
  |   Sector:  Construction & Infrastructure   |   Industry:  Wood & Wood Products

Snapshot

Q.1 Which industry/sub-sector does Century Plyboards (India) Ltd belong to?
Century Plyboards (India) Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Wood & Wood Products segment.
Q.2 Is Century Plyboards (India) Ltd a good quality company?
Century Plyboards (India) Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Century Plyboards (India) Ltd undervalued or overvalued?
Century Plyboards (India) Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 63.01 45.86
Price to Book 6.52 7.20
Price to Sales 3.86 4.05
EV to EBITDA 32.69 27.24
Q.4 Is Century Plyboards (India) Ltd a good buy now?
Century Plyboards (India) Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Century Plyboards (India) Ltd?
Century Plyboards (India) Ltd revenue growth is 8.2% for FY-2025, which is below its 5-year CAGR of 12.25%, indicating slower growth.

Q.2 Gross Profit margin of Century Plyboards (India) Ltd?
Century Plyboards (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.9% for FY-2025, which is below its 5-year median of 14.8%, indicating decreasing margins.

Q.3 Operating Profit Margin of Century Plyboards (India) Ltd?
Century Plyboards (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.63% for FY-2025, which is below its 5-year median of 15.87% indicating decreasing margins.

Q.4 Net Profit Margin of Century Plyboards (India) Ltd?
Century Plyboards (India) Ltd Net Profit Margin is 7% for FY-2025, is below its 5-year median of 9.09%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10.9 14.8
Operating Profit Margin (%) 11.63 15.87
Net Profit Margin (%) 7 9.09

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Century Plyboards (India) Ltd?
Century Plyboards (India) Ltd Return on Asset is 7.8%, which is below its 5-year historical median of 11.59%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Century Plyboards (India) Ltd?
Century Plyboards (India) Ltd Return on capital employed is 15.13% for FY-2025, which is below its 5-year historical median of 19.88%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Century Plyboards (India) Ltd?
Century Plyboards (India) Ltd Return on equity is 12.32% for FY-2025, which is below its 5-year historical median of 16.43%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Century Plyboards (India) Ltd?
Century Plyboards (India) Ltd Cash conversion cycle is 63 days, above its 5-year historical median of 57 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.22 1.34
ROE (%) 12.32 16.43
ROCE (%) 15.13 19.88
Cash Conversion Cycle 63 days 57 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Century Plyboards (India) Ltd?
Century Plyboards (India) Ltd Debt-to-Equity ratio is 0.30, which is above the industry average of 0.28, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Century Plyboards (India) Ltd?
Century Plyboards (India) Ltd Debt to cash flow from operations is 5.55, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Century Plyboards (India) Ltd?

Q.1 Promoter shareholding and pledge status of Century Plyboards (India) Ltd?
Promoters hold 71.83% of the Century Plyboards (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Century Plyboards (India) Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Century Plyboards (India) Ltd vs industry peers?
Century Plyboards (India) Ltd revenue CAGR is 12.25%, compared to the industry median CAGR of 1.10%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 8.2 1.1
Gross Profit Growth (%) -4.5 10.3
Operating Profit Growth (%) -4.1 8.8
Net Profit Growth (%) -9.5 14.4
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.22 0.92
ROE (%) 12.32 3.79
ROCE (%) 15.13 6.16
Cash Conversion Cycle (days) 63.28 86

Valuation & price assessment

Q.1 Stock return of Century Plyboards (India) Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 16.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
16.8% 13.7% 10% 1.1%
Q.2 Valuation ratios of Century Plyboards (India) Ltd vs historical?
The current P/E ratio of 63.01 is higher than its historical median of 45.86, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 63.01 45.86 26.71
Price to Book 6.52 7.20 2.80
Price to Sales 3.86 4.05 1.60
EV to EBITDA 32.69 27.24 14.38

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