HDFC Securities Estimates 40% Upside In Mid Cap Building Materials Stock, Buy

HDFC Securities has assigned buy call to leading mid cap building materials stock, Century Plyboards (India) Ltd with a target price of Rs 715 apiece. If you buy Century Plyboards now, you will get potential upside of 40%. The mid cap stock has a market capitalisation of Rs 11,330 crore. Check key details below:

1. Century Plyboards Stock Performance

The last trading price of the stock is Rs 510 apiece with an intraday fall of 0.78%. The stock's 52-week high is Rs 749 apiece and 52-week low is Rs 484 apiece, respectively.

2. Century Plyboards Return

The shares of the company have rallied 204% in last 3-years and 48% return in last 5-years. In last 1-year, the stock has declined 20% and 18% in last 3-months. The shares have fallen 10% in last 1-month.

3. Multiple Tailwinds

According to HDFC Securities, "the building material sector in India is experiencing strong growth due to various favourable factors, including the country's urbanisation, a rebound in the real estate market, and growth in the hospitality and healthcare sectors.

Affordable home loan rates and government investment in infrastructure projects are also driving demand for products like tiles, pipes, and wood panels. The demand for wood panels, specifically, is being fueled by an increase in the production of furniture made from plywood, MDF, and particle board.

Additionally, India is seeing an increase in its share in global exports of tiles, laminates, and MDF. Overall, the outlook for the building material sector in India remains bright.

4. About Century Plyboards

Century Plyboards (India) Ltd (CPIL) is engaged in manufacturing and selling of Plywood Laminates, Decorative Veneers, Medium Density Fibre Boards, Pre-laminated Boards, Particle Board and Flush Doors. It also provides Container Freight Station Services.

It has manufacturing facilities near Kolkata Karnal Guwahati Hoshiarpur Kandla and Chennai. Its Container Freight Station (CFS) is located near Kolkata Port. Century Plyboards (India) Ltd was incorporated in January 05 1982. In year 1997 Company was first to introduce borer proof plywood in India.

Disclaimer

The stock has been picked from the brokerage report of HDFC Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.