As of now, in Q2FY23, demand trends in the wood panel market have remained consistent (July-September). Recent interactions with dealers and businesses in the sector, according to ICICI Securities Ltd., show that strong demand is being maintained by ongoing momentum in the residential market and increased spending on house improvements following the epidemic. For Century Plyboards (India) Ltd., this is encouraging.

Due to the inflationary environment, the Plywood market has continued to experience increasing demand for mass market brands like Sainik, which may continue shortly, according to ICICI research from September 9th.

According to the report, “underlying drivers continue to be favourable, and we expect demand should rise for the wood panel market post-festival season.” On the basis of growth in the MDF segment, the brokerage house projects that the company will have a revenue CAGR of 19.5 per cent over FY22–24.

The company has not raised prices this quarter but will still benefit from price hikes of 2-7 per cent for plywood and 3-4 per cent for laminate implemented in Q1FY23, according to the study. In contrast, according to the report, MDF margins would decrease by about 120 basis points annually to 30.5 per cent in FY23 due to rising raw material costs. “Plywood margins may face some pressure in the near term (but still be better than the low base of Q1FY23),” it said. 0.01per cent is one basis point.

The stock has increased by about 14 per cent so far this year, outpacing the sector index Nifty500, which has increased by 3 per cent during the same time period. According to ICICI Securities, the stock has had a significant rise of around 22 per cent during the past three months.