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Check Before You Invest : Century Extrusions Ltd

BSE: 500083 NSE: CENTEXT ISIN: INE281A01026
  |   Sector:  Metals & Mining   |   Industry:  Aluminium & Aluminium Products

Snapshot

Q.1 Which industry/sub-sector does Century Extrusions Ltd belong to?
Century Extrusions Ltd belongs to the Metals & Mining sector, operating specifically within the Aluminium & Aluminium Products segment.
Q.2 Is Century Extrusions Ltd a good quality company?
Century Extrusions Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Century Extrusions Ltd undervalued or overvalued?
Century Extrusions Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 15.06 16.43
Price to Book 1.77 1.83
Price to Sales 0.35 0.37
EV to EBITDA 6.55 6.80
Q.4 Is Century Extrusions Ltd a good buy now?
Century Extrusions Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Century Extrusions Ltd?
Century Extrusions Ltd revenue growth is 15% for FY-2025, which is above its 5-year CAGR of 13.34%, indicating faster growth.

Q.2 Gross Profit margin of Century Extrusions Ltd?
Century Extrusions Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.8% for FY-2025, which is in line with its 5-year median of 3.7%, indicating stable margins.

Q.3 Operating Profit Margin of Century Extrusions Ltd?
Century Extrusions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.01% for FY-2025, which is in line with its 5-year median of 6.01% indicating stable margins.

Q.4 Net Profit Margin of Century Extrusions Ltd?
Century Extrusions Ltd Net Profit Margin is 2.3% for FY-2025, is above its 5-year median of 1.91%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 3.8 3.7
Operating Profit Margin (%) 6.01 6.01
Net Profit Margin (%) 2.3 1.91

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Century Extrusions Ltd?
Century Extrusions Ltd Return on Asset is 6.03%, which is above its 5-year historical median of 4.88%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Century Extrusions Ltd?
Century Extrusions Ltd Return on capital employed is 18.3% for FY-2025, which is above its 5-year historical median of 16.57%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Century Extrusions Ltd?
Century Extrusions Ltd Return on equity is 12.74% for FY-2025, which is above its 5-year historical median of 10.78%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Century Extrusions Ltd?
Century Extrusions Ltd Cash conversion cycle is 38 days, below its 5-year historical median of 58 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 2.62 2.57
ROE (%) 12.74 10.78
ROCE (%) 18.3 16.57
Cash Conversion Cycle 38 days 58 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Century Extrusions Ltd?
Century Extrusions Ltd Debt-to-Equity ratio is 0.59, which is above the industry average of 0.42, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Century Extrusions Ltd?
Century Extrusions Ltd Debt to cash flow from operations is 3.7, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Century Extrusions Ltd?

Q.1 Promoter shareholding and pledge status of Century Extrusions Ltd?
Promoters hold 52.04% of the Century Extrusions Ltd, with 13.54% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Century Extrusions Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Century Extrusions Ltd vs industry peers?
Century Extrusions Ltd revenue CAGR is 13.34%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 15 -
Gross Profit Growth (%) 14.3 13.6
Operating Profit Growth (%) 13 16.2
Net Profit Growth (%) 42.9 11
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.62 1.36
ROE (%) 12.74 5.69
ROCE (%) 18.3 9.85
Cash Conversion Cycle (days) 38.13 87

Valuation & price assessment

Q.1 Stock return of Century Extrusions Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 26.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
26.9% 25.9% 25.8% 6.5%
Q.2 Valuation ratios of Century Extrusions Ltd vs historical?
The current P/E ratio of 15.06 is lower than its historical median of 16.43, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 15.06 16.43 19.49
Price to Book 1.77 1.83 1.70
Price to Sales 0.35 0.37 0.75
EV to EBITDA 6.55 6.80 9.12

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