Page 4 - 1800197_Value_Plus_March1

Fundamental

St ck

Century Textile & Industries ltd

Accumulate Target Price Rs: 1329 from USA and other importing countries for textile
products is likely to improve the performance of this
Value Parameters business segment.
Cement During the FY 2016-17, the Company has
BSE Code 500040 produced 9.9 million tons of cement as compared to
NSE Symbol CENTURYTEX 10.2 million tons previous year, witnessing a de-
CMP growth of 3%.
Rs.1200 Pulp and paper Century textile is the only Indian
paper company producing all types of paper
Face Value Rs 10 products like writing and printing paper, copier
52 Week High/Low 1471/915 paper, and tissue & board.
During the year, quarter over quarter, this segment
Market Cap (Rs cr) 13,491 continued to improve its performance.
EPS (TTM) 29.53 Real Estate: Company has developed a commercial
PE ratio (x) 40.61 property on the land adjacent to its registered office
in Worli, Mumbai; called Birla Aurora & is leased
Shareholding Pattern % (Dec’ 17) out to the extent of about 90% and Birla Centurion
is leased out to the extent of 60%.
Promoters Dlls FIIs Other Company aims to increase revenues from the Real-
Estate segment.
25% 50%
16% Outlook & Valuation

9% Century textile has been continuously growing and
diversifying its business, Cement contributes 4328Cr
Company Overview to total revenue (TTM).
Textile contributes 682Cr (Adjusted for transfer of
Century Textiles & Industries Ltd has a wide portfolio VFY/VSY business to Grasim Industries) to total
that includes the manufacture of Yarn, Denim, Viscose revenue (TTM).
filament rayon yarn, Tyrecords, Caustic soda, Sulfuric Pulp & Paper and Real-Estate contribute 2196Cr and
acid, Salt, cement, Pulp & paper and Real-Estate. 125 Cr respectively to total revenue.
We have valued each segment differently with
Textiles (Cotton fabrics, Denim cloth, Yarn, Viscose different valuation metrics according to industry
Filament Yarn & Tyre Yarn): average and our estimated market cap comes to
14,887Cr. Based on this we arrive at fair price of Rs.
Cotton textiles and yarn faced various challenges during 1329. We have ‘Accumulate’ rating on the stock, on
the year, including sluggish demand in domestic and the back of healthy profit growth in trailing twelve
export markets, the possibility of a pickup of demand months.

4 ARIHANT CAPITAL ¡ march 2018