The shares of this textile company gained up to 8 percent after the company’s subsidiary secured a 5-acre land parcel for its residential project which will generate Rs 1,400 crore revenue for them.
Century Textiles and Industries Ltd has a market capitalization of Rs 24,401.04 crore, the shares were trading at Rs 2,183.45 per share, which increased drastically by 4 percent as compared to the previous closing price of Rs 2,100.70 apiece.
Matter explanation:-
According to the company filing, Century Textiles and Industries Ltd’s wholly-owned subsidiary Birla Estates Pvt. Ltd is expanding its footprint in the NCR region with a strategic land acquisition in Gurugram. This 5-acre parcel offers a development potential of around 10 lakh square feet and is expected to generate revenue of over Rs 1,400 crore.
Furthermore, this prime location offers exceptional connectivity to Delhi and other parts of Gurugram via the Dwarka Expressway, Sohna Road, and Golf Course Extension Road along with proximity to top educational institutions, hospitals, as well as F&B, retail, and commercial centers.
Commenting on this latest expansion, Mr. K. T. Jithendran, MD & CEO at Birla Estates said, “Gurugram has been a pivotal market for us from the outset. The real estate potential in this micro-market is immense and reinforces our strong focus in the Delhi-NCR region. With this acquisition, we aim to cater to homebuyers seeking exclusivity and distinctive living
experiences. At Birla Estates, our commitment transcends luxury; our ethos is to embrace a vision of residences that embody a legacy of dedication and excellence.”
Financial Condition:-
Examining the company’s financial performance, revenue soared by 71 percent from Rs 982 crore in Q4FY23 to Rs 1,686 crore in Q4FY24, but during the same time frame, net profit plummeted by 85 percent from Rs 142 crore to Rs 21 crore.
Remarkable Return and Capacity:-
The stock has delivered returns of 52.78 percent in the last six months and a multi-bagger return 129.41 percent in a year. A shareholder’s investment of Rs. 1 lakh in the company would be worth Rs. 2.29 lakh in a year.
Century Textiles is making technical upgrades, removing bottlenecks, and balancing the plants at its Paper Mills 3 and 4, which have a monthly capacity of 7,200 Mt each. After the operation, capacity will increase to 8,500 Mt each. The company is also installing a new evaporator, which will reduce its power costs.
Prominent Clients:-
Century Textiles and Industries has some prominent clientele which includes Louis Philippe, Cotton King, Blackberrys, Turtle, US Polo, M&S, Levi’s, Macy’s, Costco, Grorge etc.
Company Snapshot:-
Century Textiles & sectors Ltd grew into a commercial powerhouse with stakes in a variety of sectors. Currently, the company is a trendsetter in cotton textiles and has a strong presence in the pulp & paper and real estate industries.
Written by:- Abhishek Singh
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