Century Plyboards share price: Sharekhan maintains Buy rating on Century Plyboards with a revised price target of Rs 360
Century Plyboards is expected to benefit from continued strong demand for plywood, laminates and MDF, as new house construction remained buoyant and as demand for readymade furniture stayed high. The MDF and particle board capacities are running at over 100% as compared to 60-65% during January 2020. Further, the domestic furniture industry is having the government’s focus on boosting local furniture manufacturing, which is well aided by a yoy fall in furniture imports since February 2020 and a rise in exports of the same since July 2020.
The sharp rise in input costs has affected the unorganised sector leading to market share gains for organised players such as Century Plyboards having a strong balance sheet: Image taken from companies website