Shares of this midcap company jumped around 5 percent in Monday’s trading session after the company acquired land in Manjri, Pune with an estimated revenue potential of Rs 2,500 crores. The shares have delivered a multibagger return of 191 percent to its shareholders in one year.
Price Movement:
With a market capitalization of Rs. 25,956 crores, the shares of Century Textiles & Industries Ltd started Monday’s trading session on a higher note at Rs. 2,221.55 compared to its previous close of Rs. 2,217.80. During the trading session, the shares hit a high of Rs. 2,347.30, gaining around 6 percent and closed the day at Rs. 2,329 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that its wholly-owned subsidiary Birla Estates Pvt Ltd is all set to expand its presence in Pune with a land acquisition in Manjri, Pune.
The land parcel is spread across 16.5 acres with a development potential of approx. 32 lac sq ft and an estimated revenue potential of Rs. 2,500 crores.
The proposed development will be part of an integrated township, offering a variety of residential unit configurations. The project is strategically situated on the Pune-Solapur Highway offering connectivity to several IT hubs, including Kharadi, Magarpatta, and Phursungi, as well as the Hadapsar MIDC.
Furthermore, the company mentioned that the project is conveniently connected to educational institutions, healthcare facilities, and shopping centres, making it a lucrative investment opportunity. The area is poised for substantial growth due to its excellent connectivity to the Pune Ring Road.
Financials:
Coming onto the company’s financial statements, the revenue increased by 31 percent from Rs. 1,179.12 crores during the December quarter to Rs. 1,542.11 crores in the March quarter. On a contrasting note, the net profits decreased by 74 percent from Rs. 79.95 crores to Rs. 20.64 crores during the same period.
Recent Development:
Earlier, the company’s wholly-owned subsidiary Birla Estates Pvt Ltd had entered into a joint venture with Barmalt India Pvt Ltd. for a luxury residential group housing development in Sector 31, Gurugram.
The land parcel is spread across 13.27 acres with a development potential of approx. 2.4 million square feet offering a revenue potential of approx. Rs. 5,000 crores.
Century Textiles & Industries marked its entry into the realty sector in 2016 under the Birla Estates division. Birla Estates is a 100 percent wholly-owned subsidiary and has a diversified portfolio of residential, commercial and mixed-use properties.
Future Plans:
The company is pursuing aggressively deals in NCR markets for new projects and is expecting to launch new projects in NCR, Pune, and Bangalore. Further, they are planning to increase BD to maintain steady growth in the future.
Company Profile:
Headquartered in Maharashtra, Century Textiles and Industries Ltd transformed from a single-unit textile entity in 1987 into a commercial powerhouse with interests in diverse industries. Currently, the business house is a trendsetter in cotton textiles and also has a remarkable presence in the Pulp and Paper and Real Estate sectors.
Written By Vaibhav Patil
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