This is not only easy and cheap to do, but also quite elegant candle holder for yourself or someone else. Excellent gift idea!

Step 1: What You Will Need?

This is pretty easy project, which doesn't require any professional tools or anything like that to be done.

Basically you will be good with just:

Wood glue
Wood oil/Varnish (I found oil to look nicer)
Drill
Hole saw, two sizes (I used 41mm and 67mm)
Sanding paper
Plywood (any wood will work but I found plywood to look nicer after applying coating)

Step 2: Making Holes

Cut three pieces of plywood with bigger hole saw. Then enlarge hole in one of them by using smaller hole saw. Make sure the candle you are about to put will fit in there.

Step 3: Sanding

Use your sanding parer to make surface smooth from inside and outside.

Step 4: Preparing for Oiling

Wash pieces in water to get rid of dust and let them dry. Then glue pieces together in wanted shape (be creative). Add some pressure in beginning for about 10 minutes and don't forget to let it dry completely for better result.

Step 5: Oiling

Oil it and wait for at least 10 hours. Then wipe the extra with toilet paper and you are basically done at that point!

Step 6: Few More Words...

I'm more than happy with my result, however I must afterwards say that the result could be better if I first oiled and then glued pieces together, not vice versa as I did. Anyways I'm happy to hear what you think about this project and see your results in comment section!