Century Plyboard (CENTURYPLY)

FairStock Score: 36/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear two hats here: Graham's demand for margin of safety, Buffett's preference for durable moats. Century Plyboard sells plywood and laminates, a business I can understand. The numbers show a branded consumer-facing building material with promoter holding of 72.64%, sales growth of 32.16% and profit growth of 39.32%; latest quarter sales ₹1,350 Cr and net profit ₹65 Cr. That is respectable momentum. But quality? ROE 10.02% and ROCE 10.38% tell me the business earns only around cost of capital, not a high-return compounding machine. Debt/equity 0.67 is moderate, Altman Z 4.21 suggests low bankruptcy risk, Piotroski 7/9 shows decent accounting/fundamental momentum. However, free cash flow is ₹-681 Cr, which worries me: growth is consuming cash, not producing it. Graham would balk at P/E 57.80, P/B 6.45, EV/EBITDA 219.09 and Graham Number ₹159.79. At ₹756.55, the margin of safety is -360.01%—paying far above intrinsic asset-based value. Dividend yield 0.13% gives little income support. 5yr revenue CAGR 14.34% is good but not enough to justify such a multiple without much higher ROE/ROCE. FairStock 36/100 MIXED confirms not a bargain. I like the promoter skin in game, sales growth and low insolvency risk, but price asks for perfection while cash flow is negative. For an Indian retail investor, this is a watchlist quality-momentum candidate, not a Buffett-style bargain. Wait for lower price or improving FCF and returns.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer