Nuvama has reiterated its buy rating on Century Plyboards with a target price of ₹1,028 per share, citing strong execution across core businesses and clear long-term visibility on growth. The brokerage said management remains confident of achieving ₹12,000 crore in revenue by FY31, implying an 18% compound annual growth rate over the coming years.
According to Nuvama, Century Ply can generate ₹700–750 crore in revenue from its existing gross block, but will need an incremental investment of ₹2,000–2,500 crore by FY29 to meet its FY31 targets. The brokerage highlighted that plywood execution continues to remain strong, supporting steady cash flows and capacity utilisation.
Nuvama also expects a turnaround across other segments. MDF margins are projected to recover from H2FY27 onwards, while laminates are already showing early signs of improvement. The particle board segment is expected to reach EBITDA breakeven by Q3FY26, which should reduce drag on consolidated profitability.
At the current valuation of around 31x FY28 earnings, Nuvama believes the stock continues to offer a favourable risk-reward given Century Ply’s leadership position, diversified product mix and improving margin trajectory across non-core segments.
Disclaimer: The views and recommendations above are those of Nuvama. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
