Shares of Century Plyboards (India), on Friday, rallied 8 per cent and hit a fresh 52-week high of Rs 358.70 on the BSE in intra-day trade on the back of heavy volumes. The stock was trading higher for the third straight day, soaring 24 per cent during this period. It is quoting close to its record high of Rs 364, touched on April 9, 2018.
At 09:46 am, Century Plyboards was trading 6 per cent higher at Rs 352, as compared to 0.42 per cent rise in the S&P BSE Sensex. The trading volumes on the counter nearly doubled as compared to two-week average volumes. A combined around 715,000 equity shares had changed hands on the counter in first 30 minutes of trade on the NSE and BSE.
On April 9, the company, which is a leading manufacturer of plywood and decorative, announced launch of Firewall technology that ensures that its customers get critical time to act and be safe in case of fire. Firewall Technology is the outcome of arduous and indigenous research work done by the organization. The organization has decided to offer this benefit currently to its customers at no additional cost. Firewall technology involves use of nano-engineered particles, which are embedded in the polymer matrix of a plywood, giving it best-in-class firefighting properties, Century Plyboards said in a press release.
The Firewall Technology will be available in its Architect and Club Prime range of plywood from April 2021 onwards, it said.
The demand for wood panel industry remains buoyant driven by domestic consumption, declining imports and rising exports of furniture. Century has been able to gain from strong demand momentum seen in Q3FY2021 which is expected to continue in Q4FY2021. Further, demand outlook remains buoyant with the government’s focus on infrastructure and housing sectors, brokerage firm Sharekhan said in stock update.
The company’s strong operational performance is expected to sustain going ahead led by price hikes and cost efficiencies. The capacity expansion in the Medium-density fiberboard (MDF) segment is expected to provide next leg of growth. The company has been able to generate strong operating cash flows increasing treasury surplus which should aid in capacity expansions going ahead, the brokerage firm said with retain ‘buy’ rating and target price of Rs 360 per share.
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