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Century Enka Ltd. Stock Analysis

Small Cap
Evaluated by 695 users | BSE: 500280 | NSE: CENTENKA |
Textile
Century Enka Limited was established in 1965, as a joint venture of the B K Birla group and Accordis group of Netherland. In 2006 Acordis Overseas Investment an associate of Dutch company Acordis, sold its entire stake in the company in the favour of B K Birla Group.It manufactures nylon...

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.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 9.86%2.94%5.39%8.63%5.77%8.2%11.32%5.6%7.72%7.43%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,3491,6501,5521,4671,2191,1481,1851,4161,7911,423
Y-o-Y Gr. Rt.-22.3%-5.9%-5.5%-16.9%-5.8%3.2%19.5%26.5%-20.5%
Adjusted EPS (Rs.) 36.363.6914.3929.3617.7329.1543.6422.6633.1933.49
Y-o-Y Gr. Rt.--89.9%290%104%-39.6%64.4%49.7%-48.1%46.5%0.9%
Book Value per Share (Rs.) 293.22291.43294.38316.14323.75356.07391.01412.31437.01468.99
Adjusted Net Profit 79.58.131.564.238.863.795.449.572.573.2
Net Op. Cash Flow (Rs. Cr.) 22.214513015212819260.556.1122142
Debt to Cash Flow from Ops 18.312.432.131.281.190.360.870.840.310.12
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 Enka Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 0.6%3.2%6.3%-20.5%
Adjusted EPS -0.9%13.6%-8.5%0.9%
Book Value per Share 5.47.76.37.3
Share Price 1.8% -1.9% -23.2% -1.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 12.951.244.839.475.478.5211.685.647.827.39
Operating Profit Margin (%) 12.874.948.8712.449.8512.4515.758.088.46.55
Net Profit Margin (%) 5.890.492.034.373.185.558.043.54.055.14
Debt to Equity 0.630.550.430.280.220.090.060.050.040.02
Working Capital Days 155133113108130115105115100125
Cash Conversion Cycle 73706978918381876877
Entity Percentage Holding
Promoters 24.80%
Institutions 7.33%
Non-Institutions 67.87%
Pledged *6.640.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Century Enka Ltd.'s performance infers:

Century Enka Ltd. earnings have grown by 13.6%, whereas share price has depreciated -1.9% 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 Enka Ltd. share prices over the last 10 years. Here is what we found out:

Century Enka Ltd. share price has depreciated -3% annually over the past ten years.

Century Enka Limited was established in 1965, as a joint venture of the B K Birla group and Accordis group of Netherland. In 2006 Acordis Overseas Investment an associate of Dutch company Acordis, sold its entire stake in the company in the favour of B K Birla Group.

It manufactures nylon and other man-made fibres and fabrics. Nylon yarn is marketed in India under the trade mark ‘Enkalon’. The company produces jumbo beams, specialty yarns, industrial/fiber grade chips,

Century Enka Limited was established in 1965, as a joint venture of the B K Birla group and Accordis group of Netherland. In 2006 Acordis Overseas Investment an associate of Dutch company Acordis, sold its entire stake in the company in the favour of B K Birla Group.

It manufactures nylon and other man-made fibres and fabrics. Nylon yarn is marketed in India under the trade mark ‘Enkalon’. The company produces jumbo beams, specialty yarns, industrial/fiber grade chips, industrial yarns and tyre-cord fabrics. Its yarns are used as reinforcing material in tyres, conveyor belts, V-belts, hoses, ropes and cordage, and broad and narrow woven. After completing the first phase of modernization, the company launched draw warper jumbo beams for the first time in India. The product is focused for manufacturing of premium fabrics made from zero twist-sized warp yarn on hi-tech German make draw warping machines.

Century Enka Limited (CEL) has three plants with state of the art technology viz. Century Enka Ltd. - Pune, Konkan Synthetic Fibres - Mahad in Maharashtra & Rajashree Polyfil - Bharuch in Gujrat producing Nylon & Polyester Filament Yarns (Textile grade), POY, Jumbo Beams, Speciality Yarns, Industrial/Fibre grade Chips, Industrial Yarns & Tyre Cord Fabrics.

CEL has an installed capacity of 1,10,000 tonnes per annum of Nylon Chips/NFY & Polyester Chips/PFY, with 12,000 tons/annum of Industrial Filament/Tyre Cord Fabric.Century Enka Ltd. has been continuously striving for modern technology to manufacture global standard quality of Nylon and Polyester Filament Yarns.

CEL is committed towards values of quality, innovation & fair business practices for complete customer satisfaction.

Century Enka Limited has emerged as a leading Nylon Filament yarn manufacturer in India with commitment of modern technology to manufacture global standard quality Nylon Filament Products. We have set upon a mission to Re-Define Nylon Quality Standards in Indian Market.

In pursuit of the above goals, CEL has introduced for the first time in India Nylon Flat Yarn on paper tube packages, produced from latest generation Draw-Winder machines.This provides flexibility to supply unit package weight of upto 8 kg, which is ideally suitable for high speed processing machines (TFOs) at customer's end. Apart from package weight, Draw-winder products of CEL are superior in terms of Yarn characteristics, viz. Unwinding performance, runnability & Improved Tenacity as compared to Cops and FDY (Spin-Draw) HOY products.

It also provides complete freedom from Cops administration and collection, which is a nightmare for both Customers as well as Dealers/Agents.

After completing the first phase of modernization, CEL has now launched Draw Warper Jumbo Beams.

For the first time In India, these products are being focused towards manufacturing of premium fabrics made from Zero Twist Sized Warp Yarns. These products are being produced on world class superior Hi-Tech German Make Draw Warping Machines. This modern technology, which had been available only in the international market, has now been available to the domestic consumers. It will open up new opportunities for growth in nylon Industry, in terms of volumes as well as new quality fabric creations.

Century Enka Limited, Pune site and its division is known as ‘Konkan Synthetic Fibres’ (both units viz. POY and PY) in Mahad (Dist. Raigad) & ‘Rajashree Polyfil’ in Umalla (Dist. Bharuch), aim at improvements on continuous basis in all areas of its business operations with distinct focus on manufacturing process and product through modern technology and Providing satisfaction to customers.

Product range

  • CEL produces wide range of high quality Nylon Processed Yarns for varied application areas.
  • In weaving segment it provides Mono Filaments of 20/1SD, 20/1BSPK and also Multi filaments in wide range as 20/10BSPK, 30/24BSPK, 140/72BSPK, 44/24FD, 80/36SD, 140/48SD, etc. (BSPK - Bright Trilobal, SD - Semi Dull Circular, FD - Full Dull Circular).
  • Specialized Product Range for High TPM Fabrics (Georgette/Chiffons)
  • Nylon Jumbo Beams
  • Nylon POY For Air Texturising
  • Sewing Thread & Fish Net
  • Polyester Filament Yarn- company’s RAJASHREE brand has now become synonymous with highest quality POY products being produced keeping in mind the need of new generation 'High-Speed' machines. A wide range of POY products are available for Draw Texturising as well as Air Texturising, Draw Twisting and Draw
  • Warping applications.
  • Processed Yarn
  • Industrial Yarn & Tyer Cord Fabric- The Plant at Pune produces High Tenacity Nylon (Polyamide 6) and Polyester Industrial Yarns and Greige Tyre Cord Fabrics among other products

CEL has introduced for the first time in India Nylon Flat Yarn on paper tube packages, produced from latest generation Draw-Winder machines.

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

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