📘 Central Industries PLC – Leveraged Exposure to Sri Lanka’s Construction & Water Infrastructure Upswing We initiate coverage with a BUY recommendation and a Target Price of LKR 304.00, implying ~23% upside from the current market price. 🎯 Key Investment Highlights 🌊 Post-Cyclone Ditwah reconstruction to drive strong demand for water infrastructure and PVC piping 🏗 Infrastructure-led government spending supporting irrigation, water supply, and sanitation projects 🏭 Strong brand and distribution network in premium PVC pipes & fittings 📈 Operating leverage upside as volumes absorb fixed manufacturing costs 🔧 Diversified product portfolio across pipes, fittings, electrical accessories, and lighting solutions 📊 Key Metrics • Target Price (FY27E): LKR 304.00 • Current Market Price: LKR 247.50 • Upside: ~22.8% • Expected ROE expansion to ~16–17% by FY28E ⚠️ Key Risks • PVC resin price volatility and FX depreciation impacting input costs • Competitive pricing pressure • Cyclicality in construction sector demand