About company
Cenury Enka Limited (CEL) is part of B.K. Birla group of companies, Established in 1965.
CEL has two manufacturing sites, located at Pune (Maharashtra) and Rajashree Nagar (Bharuch - Gujrat). The unit at Rajashree Nagar site is known as Rajashree Polyfil.
The products manufactured by Century Enka Limited are Polyester Filament Yarn, Nylon Filament Yarn, Polyester POY, Polyester and Nylon Chips of industrial and fabric grade and Nylon Industrial Yarn and Nylon Tyre Cord Fabrics.
| Products | Installed Capacity |
| Polymer / Chips | 146000* |
| Synthetic Filament Yarn (Including Industrial Yarn) | 125200** |
| Tyre Cord Fabric | 22000 |
| * Including for captive consumption for Synthetic Filament Yarn 127400 MT ** Including for captive consumption for Tyre Cord Fabric 22000 MT | |
Outlook
Good points about company are:
- Company has reduced debt.
- Company is virtually debt free.
- Stock is trading at 0.83 times its book value
- Company has been maintaining a healthy dividend payout of 6 rps/share.
Take a look on ratios :
>Return on equity: 8.71% >Return on capital employed: 11.91%
>Net Profit latest quarter: ₹ 22.50 Cr. >NPM latest quarter: 8.51%
>NPM last year: 5.20% >Debt to equity: 0.09. >Interest Coverage: ₹ 13.59
>NPM last year: 5.20% >Debt to equity: 0.09. >Interest Coverage: ₹ 13.59
Century Enka posted net profit of 36.5 Cr.and 59.5Cr. in fy15 and 16 respectively.From the last two quarters, remarkable improvement seen in the net profit of the company. The performance has been very good in the last two quarters. For June quarter ending, net profit went up by around 73% to 22cr, if company continue to give performance like this in fy17 net profit can come around 80 cr. and EPS around 40. and that will be called great growth.so, in my view buy century enka with longterm perspective for multibagger returns from cmp 290. i aso reco. to buy it at the level of 211 and 266 few days ago.
My views are personal do your own homework before invest.
Hi Mayank, year on year , revenue of Century Enka is going down so why do u feel it is a good investment
ReplyDeleteHi Mayank, year on year , revenue of Century Enka is going down so why do u feel it is a good investment
ReplyDeleteundervalued and profit increases
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ReplyDelete