ABOUT THE COMPANY
Century Plyboards (I) Ltd., makers of the well-known ‘Centuryply’ brand of Plywood and decorative veneers, was set up in 1986 in Kolkata, a joint effort of Mr. Sajjan Bhajanka and Mr. Sanjay Agarwal. The largest seller of plywood and decorative veneers in the Indian organized plywood market, Centuryply today is the leading brand and in its short duration of existence has created a special niche for itself in the industry.
ABOUT THE FINANCIALS
The company has posted results for Q3FY11, where YoY net profit slipped 13%. The promoters also plan to sell 10-15% stake to some PE investors. Promoter’s stake as at 31st Dec 2011 stood at 84.16%. NEWS FLASH 1. It is expanding the capacity of its Meghalaya from 1.2 mtpa by another 1.75 mtpa at a cost of Rs.1100 crore. (Rs.750 crore is to come as debt from financial institutions and rest from internal accruals). 2. There is expectation of demerger of its cement subsidiary to unlock value.
MY VIEW
No doubt that the stock is a good option for investment. The company has always fairly rewarded its shareholder in form of handsome dividend and bonus. There is great expectation of value unlocking in the stock. Medium to long term investment could be made in this stock.
