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Century Textiles & Industries Ltd. Stock Analysis

Small Cap
Evaluated by 1884 users | BSE: 500040 | NSE: CENTURYTEX |
Diversified
Century Textiles & Industries was established in 1897.The company has wide portfolio that manufactures yarn, denim, viscose filament rayon yarn, tyrecords, caustic soda, sulfuric acid, salt, cement and pulp & paper.It has a global presence in 41 countries including Canada , China,...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Century Textiles & Industries Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 6.91%2.72%3.11%3.61%4.28%3.88%5.83%6.63%38.84%11.17%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4,7604,9135,9956,7357,6297,9677,9018,4623,9443,430
Y-o-Y Gr. Rt.-3.2%22%12.3%13.3%4.4%-0.8%7.1%-53.4%-13%
Adjusted EPS (Rs.) 24.892.83-3.210.03-0.46-8.457.9932.11192.7640.37
Y-o-Y Gr. Rt.--88.6%-213.4%NA-1633.3%NANA301.9%500.3%-79.1%
Book Value per Share (Rs.) 208.11204.1194187.81194.46211.63222.21246.03296.04320.26
Adjusted Net Profit 23226.3-29.90.3-4.6-94.389.23592,153451
Net Op. Cash Flow (Rs. Cr.) 4853494945913801,0209402,209624401
Debt to Cash Flow from Ops 6.211.249.829.616.155.686.061.981.613.35
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Century Textiles & Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -3.6%-14.8%-24.3%-13%
Adjusted EPS 5.5%NA71.6%-79.1%
Book Value per Share 4.910.5138.2
Share Price -0% -10.5% -38.5% -24.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 12.431.37-1.610.02-0.24-4.263.6813.7271.1213.1
Operating Profit Margin (%) 14.18.839.7810.758.578.4911.4111.2823.2618.21
Net Profit Margin (%) 4.870.54-0.50-0.06-1.181.134.2454.613.15
Debt to Equity 1.552.062.693.253.112.452.31.590.30.38
Working Capital Days 151167161144116110108112172149
Cash Conversion Cycle 33696867655743-63935
Entity Percentage Holding
Promoters 50.21%
Institutions 22.59%
Non-Institutions 27.21%
Pledged *0.020.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Century Textiles & Industries Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Century Textiles & Industries Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Century Textiles & Industries Ltd.'s performance infers:

Century Textiles & Industries Ltd. earnings have grown by 0%, whereas share price has depreciated -10.5% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Century Textiles & Industries Ltd. share prices over the last 10 years. Here is what we found out:

Century Textiles & Industries Ltd. share price has depreciated -4.7% annually over the past ten years.

Century Textiles & Industries was established in 1897.The company has wide portfolio that manufactures yarn, denim, viscose filament rayon yarn, tyrecords, caustic soda, sulfuric acid, salt, cement and pulp & paper.It has a global presence in 41 countries including Canada , China, Japan, Hong Kong, Jordan,Kenya, UK, UAE and USA, among others.

Businesses Segments

1) Textiles

a) Cotton Textiles, Yarn and Denim- The Company's Yarn Division situated at Satrati,

Century Textiles & Industries was established in 1897.The company has wide portfolio that manufactures yarn, denim, viscose filament rayon yarn, tyrecords, caustic soda, sulfuric acid, salt, cement and pulp & paper.It has a global presence in 41 countries including Canada , China, Japan, Hong Kong, Jordan,Kenya, UK, UAE and USA, among others.

Businesses Segments

1) Textiles

a) Cotton Textiles, Yarn and Denim- The Company's Yarn Division situated at Satrati, near Indore, (Madhya Pradesh) is equipped with 24960 spindles for manufacture of Yarn and produced about 3,992 tonnes of yarn during 2009-2010. The Denim Division of the Company situated at the same location i.e. Satrati, near Indore, (Madhya Pradesh) can produce 21 million meters of denim fabrics per annum.

The production at the company’s new textile mill named “Birla Century” in District Bharuch (Gujarat), has almost stabilized, reaching near optimum levels of production and efficiency. The unit manufactures high value cotton products such as elite shirtings, an eye catching range of suitings, fancy & finer fabrics and dress materials, and a wide range of bed linen with innovative finishes and attractive designs. Nevertheless, the performance of this unit has remained under pressure due to the high cost of cotton and other inputs.

b) Century Rayon - VFY, CSY & Rayon Tyre Yarn: In 1956, Company began its Rayon Division at Kalyan, near Mumbai to manufacture Viscose Filament Rayon Yarn and today it is one of the largest producer of Viscose Filament Yarn (VFY) in India. In 1963, it also commenced production of Viscose Tyre Yarn / Industrial Yarn followed by production of Caustic Soda in 1964 and other chemicals. At Century Chemicals, Jamnagar, the company is producing industrial salt mainly for captive consumption. 2) Cement:  It was in 1974, the company diversified into production of Cement by establishing its first cement plant at Baikunth, near Raipur (Chhattisgarh) to produce 0.60 million Tonnes Per Annum (TPA) of Portland cement. The present capacity of which is is 2.10 million TPA.

Back in 1980’s, the Company established its second Portland cement plant at Maihar (Madhya Pradesh) with a capacity of 0.80 million TPA. The present capacity of which is 1.80 million TPA.In 1985, the Company established its third Portland Cement plant at Gadchandur, Dist. Chandrapur ( Maharashtra ) with a capacity of 1 million TPA. The present capacity of which is 1.90 million TPA.

In 1995-96, the company's fourth Portland Cement Plant with a capacity of 1 million TPA adjacent to the existing plant at Maihar started commercial production. The present capacity is 2.00 million TPA. Thus, the total present cement manufacturing capacity of all the four plant is 7.80 million TPA.

Century Pulp and Paper: Rayon and/or paper Grade Pulp and Writing & Printing Paper Unit with an installed capacity of 20,000 tonnes each per annum was established by the company in the year 1984 at Lalkua near Nainital (Uttarakhand). The Company presently is producing over 39,000 tonnes of Writing & Printing Paper (Wood based) and about 37,000 tonnes of Rayon and/or paper Grade Pulp per annum.

Company's second Paper unit based on Bagasse adjacent to the existing Pulp and Paper Plant at Lalkua with a capacity of 84,600 tonnes of paper per annum was established in 1995 and is presently producing over 84000 tonnes of Bagasse based paper.

The expansion of the company’s paper unit for manufacturing Paper from waste paper with a capacity of 211 tonnes per day is now running smoothly and is presently producing over 83,000 tonnes of Recycle based Pape

Awards and Achievements:

  • The company is the winner of the Rajiv Gandhi National Quality Award.
  • It is IS/ISO9001:2000 certified for quality system & ISO 14001 for Environmental Management System
  • It has received Three Star Export House status from Government of India.
  • 'Awards
    - Pulp and Paper unit's Quality Circle ''AGRO'' won the ''Gold Award'' for their case study presentation at the 21st Regional Convention on Quality Circles, organised by the Quality Circle Forum of India, Kanpur Chapter, held at Kanpur in 2010.
    - Pulp and Paper unit's Quality Circle ''AGRO'' won the ''Excellent Award'' for their case study presentation at the 24th National Convention on Quality Circles, organised by the Quality Circle Forum of India, Visakhapatnam Chapter, held at Visakhapatnam in 2010.
    - Pulp and Paper unit certified for Forest Stewardship Council (FSC) Chain-if-custody (CoC) for the period from January 24, 2011 to January 23, 2016, which will assist them for business with improved international access in an increased environmentally aware sector.
    - Pulp and Paper unit won the Certificate of Export Recognition, a Special Export Award in recognition of achievement in exports with respect to Printing & Writing Paper for the year 2009-10, by CAPEXIL (sponsored by the Ministry of Commerce & Industry, Government of India), at the annual awards at Delhi in 2011.'

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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