CENTURY TEXTILE

About company
Incorporated in the year 1897 as a Public Limited Company, Century Textiles and Industries Limited had only
one industrial unit - Cotton Textile Mills till 1951. Since then the company has made rapid progress in widely
diverse fields. At present, the company is a trendsetter in cotton textiles and also has a remarkable presence in
the real estate, cement and pulp and paper Industries.

Vision
 To manufacture products comparable to international standards, to be customer-focused and globally
competitive through better quality, latest technology and continuous innovation.

Our mission
 To manufacture world-class products of outstanding quality that give our customers a competitive
advantage through superior products and value, so we can make every customer smile.
 To encourage people's ownership, empowerment and working under team structure.
 To attain highest level of efficiency, integrity and honesty

Our values
 Customer's satisfaction and delight.
 Superior quality of performance.
 Concern for the environment and the community.
 Passionate about excellence.
 Fair to all.
 To provide a safe workplace and promote healthy work habits

Business
Sector Division Products
Textile Birla Century Cotton Textile
Cement  Century Cement Cement
 Maihar cement
 Manikgarh cement
 Sonar Bangla
Pulp and paper Century Pulp and paper Pulp and paper
Real Estate Birla Estate Residential, commercial and
retail spaces

Management team
The company is managed by a Board of Directors, comprising eminent industrialists, businessmen and
dedicated
professionals under the Chairmanship of Shri B. K. Birla.

 Shri B. K. Birla, Chairman

 Shri Kumar Mangalam Birla, Vice-Chairman
 Smt. Rajashree Birla
 Shri Pradip Kumar Daga, Independent Director
 Shri Yazdi. P. Dandiwala, Independent Director
 Shri Rajan A. Dalal, Independent Director
 Shri Shohanlal. K. Jain, Independent Director
 Shri R. K. Dalmia, Whole-time Director

Share Holding Pattern

Shareholding of Promoter and

Promoter Group

Public Shareholding
49.79 50.21

Financials
Balance Sheet
Equity Share Capital has increased from in 2016 by 10.3% and has been constant since then in 2018.
Reserves and Surplus has increased by 11.22% in 2018 as compared to 2015 it was 13.18%
Long Term Borrowing has reduced by -23.46% in 2018 as compared to 2015 it was 26.93%.
Non Current Assets has reduced by -1.35% in 2018 as compared to 2017 it increased by 4.95%.
Current assets has increased to 4.61% as compared to 2016 it inceased by 16.99%.
The financial performance of the company is good as it is performing well.

Profit and Loss

Revenue from Operations has increased by 6.62% in 2018 as compared to 2015 it increased by 12.73%.
Total Expenses has increased by 0.73% in 2018 as compared to 2017.
Profit Before Tax has increased by 354% in 2018 as compared to 2017.
Profit for the year 2018 has increased over the time from 2014.

Quarterly Results
Net Sales has reduced from 4%to -51.74% from Mar 18 to Dec 18.
Profit for the year Dec 18 has reduced to -14.22% from 21% in Mar 18.
Ratios
Mar-18 Mar-17 Mar-16 Mar-15 Mar-14
Basic EPS
33.28 9.4 -5.21 1.66 0.29
(Rs.)
Return on
Networth / 13.52 4.23 -2.47 0.75 0.15
Equity (%)
Return on
Capital 5.92 1.78 -0.85 0.23 0.04
Employed (%)
Return on
3.59 1.01 -0.54 0.15 0.02
Assets (%)
Asset
Turnover 79.26 73.96 80.54 75.01 71.74
Ratio (%)
Liquidity Ratios
Current Ratio
0.58 0.51 0.62 0.7 0.59
(X)
Quick Ratio
0.29 0.22 0.26 0.3 0.25
(X)
Enterprise
16,396.59 16,388.90 10,518.51 11,209.00 7,770.92
Value (Cr.)
EV/Net
Operating 2 2.14 1.32 1.48 1.17
Revenue (X)
EV/EBITDA
11.67 16.31 13.57 16.01 10.42
(X)

 EPS has increased, a high ratio indicates a potentially worthwhile investment, a high earnings per share
ratio is capable of generating a significant dividend for investors.
 Return on Equity is 13.52% which is good as compared to its peer companies.
 Return on Capital Employed has also increased which indicates that company is utilizing capital which is
helping company to generate profit.
 Return on Assets has increased by 3.59% in 2018.
 Asset Turnover Ratio is 79.26% which shows how efficiently company is using its asset to generate
revenue.
 Current Ratio should be improved which is less than 1.

Market cap (rs cr) - 8,988.15

P/e - 17.36
Book value (rs) - 246.02
Industry p/e - 29.40

Pros:
Company has reduced debt.
Company has been maintaining a healthy dividend payout of 23.86%

Cons:
Stock is trading at 3.23 times its book value
The company has delivered a poor growth of 6.60% over past five years.
Company has a low return on equity of 5.71% for last 3 years.
Latest News
 In the previous financial year, it had granted the right to manage and operate the its company's Viscose
Filament Yam business, to Grasim Industries for 15 years and as a part of that received an upfront royalty of
Rs 600 crore. "The company is recognising royalty over the period of 15 years on pro-rata basis”.
 The company also classified its cement division as "discontinued operations" during the quarter as
shareholders of Century Textiles and Industries have approved its merger into UltraTech through a share-
swap deal.

Target Price Determine by Volatility

1 month High and Low
High 927
Low 783.05
Difference 143.95
Volatility 18.38%

According to the Technical analysis, I am bearish for this stock