Business
Century Plyboards well-positioned for growth as MDF expansion and premium mix strengthen margins
Although demand in the first half of the year varied across product lines, the overall landscape is showing clear stabilization.
With better affordability and more balanced channel inventories, the sector is increasingly positioned for a sustained recovery across urban and semi-urban regions.
In wood panels and plywood, margins are becoming more predictable as input costs retreat from earlier highs. The steady shift toward premium and value-added products, alongside stronger brand preference, is improving pricing discipline across the segment.
MDF demand also continues to expand, supported by the growth of organized furniture retail and modular home solutions.
As new capacities ramp up and distribution reach strengthens, the category is set for more even growth driven by rising formalization and higher spending on interior enhancements.
Sanitaryware and faucet players are seeing demand pick up on the back of a widening renovation base, quicker real estate completions, and increasing adoption of premium ceramic fittings.
With natural gas costs stabilizing, margin pressures are easing meaningfully. Continued showroom expansion, product premiumization, and rising interest in water-efficient fixtures are supporting this recovery, with tier-two and tier-three markets adding further depth to the rebound.
The tiles industry is also witnessing improving sentiment as domestic demand revives and export prospects turn more positive. After grappling with capacity additions and pricing challenges in recent years, the segment is now benefiting from better capacity utilization and more normalized inventories.
Softer fuel costs and stronger replacement demand are reinforcing the recovery. More broadly, government initiatives in housing, water supply, sanitation and urban development continue to create multi-year demand visibility across building material categories.
Overall, the sector is moving into a more stable and synchronized growth environment. Consumption-led categories are aligning with the rebound in residential real estate, while margin-sensitive segments are gaining from easing cost pressures.
A blend of premiumization, increasing formalization, stronger distribution frameworks and a healthier renovation cycle is driving this improvement.
With structural demand drivers intact and raw material volatility subsiding, the building products industry is well-placed to deliver stronger operating performance and more consistent growth over the medium term, signalling the start of a more balanced and broad-based upcycle.
Century Plyboards: Target Rs 958
Century Plyboards presents a strong investment case anchored in its diversified presence across plywood, MDF, laminates, and particle boards, making it one of India’s most balanced wood panel players.
The company is seeing healthy, broad-based volume growth with improving utilization and margin expansion, supported by steady execution in all major segments. Its significant capex over FY22–25 has expanded capacities meaningfully—especially in MDF, where the new Badvel facility has doubled output and strengthened its foothold in the fast-growing southern region.
With timber prices stabilizing and BIS regulations limiting low-grade imports, MDF profitability is set to improve further. Meanwhile, plywood and laminates continue to benefit from stronger distribution, premium product upgrades, and sustained brand investment.
Backed by an enhanced manufacturing base, disciplined working capital, and strong brand-channel synergies, Century Plyboards is well positioned to capture the accelerating shift toward branded, high-quality interior solutions.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
