Shares Decline Over 3.5% as Anti-Corruption Probe Unfolds
Mumbai’s Anti-Corruption Bureau (ACB) has registered a First Information Report (FIR) against multiple individuals, including Pramod Agrawal, an Independent Director on the board of Century Plyboards, following a complaint alleging stock market fraud and regulatory violations. The action comes as per the directive of a Special Court designated under the Prevention of Corruption Act.
Stock Market Impact: Century Plyboards Shares Drop
Following the news, Century Plyboards’ stock price declined by over 3.50% on March 3, 2025, as investors reacted to the development.
- As of 1:25 PM, shares of Century Plyboards were trading at ₹696, marking a 3.54% decline from the previous closing price.
- The market sentiment turned cautious amid concerns over corporate governance and regulatory compliance.
FIR Against Pramod Agrawal and Others Over Alleged Fraud
The Special Court’s directive to register an FIR against Pramod Agrawal and others is linked to allegations of financial misconduct and stock market irregularities.
Who is Pramod Agrawal?
- Agrawal has previously served as the Chairman of the Bombay Stock Exchange (BSE).
- The allegations reportedly pertain to his tenure at the stock exchange, though the exact nature of the alleged violations is still under investigation.
Company’s Official Statement
In response to the unfolding situation, Century Plyboards issued a statement distancing itself from the allegations, emphasizing that the company remains committed to legal and regulatory compliance.
“The company remains committed to ensuring compliance with all applicable laws and regulations. We will continue to monitor the situation and provide further updates.”
The company also clarified that the ongoing legal proceedings do not involve Century Plyboards directly, and it does not anticipate any immediate operational or financial impact from the allegations against Agrawal.
Financial Performance Overview: Century Plyboards’ Q3 Results
Amid the controversy, Century Plyboards recently reported its consolidated financial results for the quarter ending December 2024, showcasing strong sales growth but a decline in net profit.
Key Financial Highlights (Q3 FY25 vs. Q3 FY24):
- Net Sales: ₹1,140.47 crore (up 21.66%) from ₹937.40 crore in December 2023.
- Net Profit: ₹58.45 crore (down 7.3%) from ₹63.06 crore in December 2023.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): ₹131.83 crore (up 14.25%) from ₹115.39 crore in the previous year.
- Earnings Per Share (EPS): Dropped to ₹2.63 from ₹2.84 in December 2023.
The decline in net profit despite strong revenue growth suggests higher operational costs or margin pressures.
Market & Investor Sentiment: Caution Prevails
With the legal proceedings ongoing, investor confidence in Century Plyboards may remain subdued in the short term.
Possible Market Reactions:
- Stock volatility may persist until more clarity emerges regarding the legal proceedings.
- Institutional investors may adopt a wait-and-watch approach before making further investment decisions.
- The company’s fundamentals remain strong, but corporate governance concerns could weigh on the stock’s valuation.
Final Thoughts: What Lies Ahead?
While the FIR against Pramod Agrawal and others raises concerns about corporate governance and regulatory compliance, Century Plyboards has asserted that it remains uninvolved in the allegations.
For investors and stakeholders:
- The company’s business fundamentals remain intact, but the controversy could impact short-term stock performance.
- Regulatory scrutiny may intensify for companies linked to individuals facing financial misconduct allegations.
- Long-term investors should closely monitor updates on the investigation and market reaction.
Century Plyboards’ stock remains under pressure, and further developments in the ACB probe will play a critical role in determining the company’s market trajectory in the coming weeks.
