Shares of this midcap company surged around 14 percent in Thursday’s trading session after the company’s arm Birla Estates entered into a joint venture with Barmalt India for a Rs. 5,000 crore luxury housing project in Gurugram. The shares have delivered a multibagger return of 162 percent to its shareholders in one year.
With a market capitalization of Rs. 23,289 crores, the shares of Century Textiles & Industries Ltd started Thursday’s trading session on a higher note at Rs. 1,951.95 compared to its previous close of Rs. 1,842.30. During the trading session, the shares hit a high of Rs. 2,096, gaining around 14 percent and are currently trading at Rs. 2,066 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that their 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
According to the company, the project has connectivity to Cyber City, Golf Course Road, and Sohna Road. It will also be located close to commercial hubs such as City Centre 29, Signature Towers, 32nd Avenue, and Crowne Plaza with easy connectivity via NH-48 as well as the metro line.
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.
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.
The company is pursuing aggressively for 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.
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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