Share prices of a micro-cap stock moved up by nearly 3.42 percent to Rs. 415.05 on BSE in the trading session of Monday, compared to the previous closing price of Rs. 401.3, after the company commissioned SSP and polyester spinning capacity.
With a market cap of Rs. 906.8 crore, at 10:47 a.m. the shares of Century Enka Limited were trading in the green at Rs. 414.75, up by nearly 3.13 percent.
According to the recent filings on the stock exchanges, Century Enka Limited has commissioned the Solid State Polymerization (SSP) and polyester spinning plant to be used in Polyester Tyre Cord Fabric (PTCF).
The company will now begin the process of PTCF approval with tyre companies. With this project completion, all approved projects under the previously mentioned Capex have been completed.
On May 2021, the Board of the company approved the investment of Rs. 240 crores to strengthen its competitive position in the tyre reinforcement market by modernisation of plant, and augmenting capacity by ~30% and Rs. 23 crores for increasing the capacity of draw texturised yarn and mother yarn.
In terms of financials, the company’s revenue from operations grew by 13.6% from Rs. 396.4 crores in Q2 FY23-24 to Rs. 450.57 crore in Q3 FY23-24, accompanied by an increase in the net profit of 8.8% to Rs. 4.67 crore in Q3 FY23-24 from Rs. 4.29 crore in Q2 FY23-24.
As of December 2023, FIIs hold 2.95 percent of the shares, while DIIs hold 6.27 percent of the shares in the company, aggregating to 9.22 percent of the institutional holdings.
Century Enka Limited is engaged in the business of manufacturing Nylon Tyre Cord Fabric (NTCF) used as reinforcement material in bias tyres and Nylon Filament Yarn (NFY) used mainly by the apparel industry.
The company was set up in 1965 by the BK Birla group and Enka International (a part of the Netherlands-based Akzo Nobel group). It is the largest NFY producer and the second-largest NTCF manufacturer in India.
Written by Shivani Singh
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