[ Comment too short ]

Hey Uday,

You need to re-post. Any insight into the Co. is welcome. The stock is 5X in the last one year. It’s got a brand recall, has available surplus capacity to make use of if the demand were to pick up & is perhaps still available below book The numbers unfortunately, are okay at best. The recent promoter buying seems to have excited the markets.

Disc: Invested

One of the concerns is that promoter entity has exactly the same business as listed entity.

Yes, I believe that the promoter entity is paying some royalty to the Co. for the use of the brand, but like I said earlier, we need to see growth coming in the coming qtrs. Perhaps the appreciating share price is a prelude to that!!

This sector seems to have a heavy tailwind, but Century Ply, Greenply , Stylam , Rushil Decor all have better balance sheets than Archidply. Archid ply is available at the cheapest PE mostly because it is neither able to match similar sales growth nor OPM expansion. Not sure whats wrong in the company.

ICICI Direct has coverage on all ply companies:

Found his old areticle form 2011

plywood industry grew at 5-7% CAGR over the last five years, Century plywood has grown at 17% CAGR led by market share gains from the unorganised segment. 75% of India’s plywood is unorganised. So trend of organised player eating up unorganised player is expected to continue for few more years.

Does anyone have a clue why all the ply stocks nose dived in 2013?

Disc: Not invested

In 2013, the Myanmar government has imposed ban on import of timber. Myanmar, Laos, Vietnam countries are rich in timber production. Sourcing of timber (Raw material for the veneer to Plywood) has become an issue for the industry.