CENTURY TEXTILE&INDUSTRIES LIMITED

COMPANY PROFILE

Incorporated in 1897, Century Textiles & Industries Limited manufactures cotton textile products and has presence in the yarn, denim, caustic soda, sulphuric acid, salt, cement, and pulp and paper industries.

Century Textiles & Industries Limited 100 % cotton yarn unit and its denim unit are both situated in Madhya Pradesh. The cotton yarn unit has a capacity of 24,960 spindles and the denim unit produces 21 million metres of denim fabric per year.

Century Textiles & Industries Limited cement segment manufactures and markets cement and clinker products for use in water tanks, roads, bridges, dams, sea walls, turbine blocks, and residential or multi-storeyed buildings under the Birla Gold brand. The Company has three cement plants at different locations, with a total cement manufacturing capacity of 7.8 million tonnes per annum.

Century’s pulp and paper plant has a capacity of 31,320 ton- nes per annum, writing and printing paper capacity of 1,97,800 tonnes per annum and a capacity of 36,000 tonnes per annum for tissue paper. Century Textiles & Industries Limited has set up a 500- tonnes per day multilayer packaging board plant adjacent to its existing pulp and paper plant at Lalkua, Uttarakhand.

STOCK INFORMATION

STOCK PRICE

611.40

TARGET PRICE

635-650

SECTOR

CENTURY TEX

SYMBOL (AT NSE)

CENTURY TEX

ISIN

INE055A01016

FACE VALUE (IN RS.)

2.00

BSE CODE

500040

STOCK FUNDAMENTALS

MARKET CAP

5658.57

BOOK VALUE

187.80

EPS - (TTM) (IN RS. CR.)

-

P/E

-

INDUSTRY P/E

16.32

Technical observations

In the last few months, Century Textiles has been forming a base near 500. After making highs in September 2014, the stock witnessed profit booking and moved towards 500. Long liquidation was seen in the last couple of months as open interest declined to the tune of 20% from highs. How- ever, the stock has again started witnessing value buying at lower levels, which is also reflected in the fresh long addi- tions. It suggests that the stock is getting ready for another round of up move

The open interest in Century Textiles has increased sharply since the inception of the March series and added almost 18% open interest in the last couple of weeks. We believe fresh long positions in Century Textiles have been formed and they are looking for much higher returns. Recent up- sides in the stock have already triggered closure of short po- sitions in the Call options segment. The highest open interest in Call options is placed at the 600 strike for the March se- ries, which is already witnessing closure of positions. Further short covering is likely to be seen above this level.

SHAREHOLDING PATTERN

RESULTS (Quarterly )(Rs CR.)

 

DEC' 14

SEP' 14

JUN' 14

MAR 14

DEC' 13

Sales

1,847.57

1,705.83

1,887.37

1,849.07

1,639.33

Operat- ing profit

96.24

155.67

204.94

183.47

168.05

Interest

139.84

109.26

96.26

93.70

90.47

Gross profit

-32.92

57.27

116.14

97.66

84.21

EPS (Rs)

-6.83

0.08

7.15

-0.53

0.17

TECHNICAL VIEW

CENTURY TEXTILES LTD is looking strong on charts. We advise to buy around 605-615 with stoploss of 580 for the targets of 635-650 levels. RSI is also showing upside momentum in it on daily charts.

Our Other Recommendation for Next Week

SCRIP

ACTION

CMP

   ENTRY

SL

TGT

TIME FRAME

SKS MICRO

BUY

447.6

440-450

428

460-75

ONE WEEK

UPL

BUY

440.74

435-440

430

445-52

ONE WEEK

AUROPHARMA

BUY

1219.6

1200-1220

1170

1250-1280

ONE WEEK

BHARTI AIRTEL

SELL

380.05

385-390

400

375-365

ONE WEEK

RECL

SELL

324.45

330-335

340

325-320

ONE WEEK

Performance of Previous Week

SCRIP

LOT

ACTION

ENTRY

SL

TGT

P&L

REMARK

CLOSE / LOW/ HIGH

ICICI BANK

1250

SELL

335-325

345

315-305

25000.00

BOTH TGT HIT

318.40 / 303.30

JUBILANT FOOD

250

BUY

1580-1590

1550

1620-1650

-7000.00

SL TRG

1524.30 / 1600.85

IRB

1000

BUY

235-240

230

245-250

10000.00

BOTH TGT HIT

245.25 / 254.00

AUROPHARMA

250

SELL

1180-1200

1220

1150-1120

20000.00

BOTH TGT HIT

1219.60 / 1113.00

REL CAPITAL

500

SELL

445-450

465

435-420

12500.00

BOTH TGT HIT

427.50 / 418.00

REL INFRA

500

SELL

440-450

459

430-410

5000.00

FIRST TGT HIT

426.45 / 419.40

NET PROFIT

 

 

 

 

 

65500.00

 

 

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DISCLAIMER

This report is only for the information of our customers. Recommendations, opinions, or suggestions are given with the understanding that readers acting on this information assume all risks involved. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. ATS and/or its group companies do not as assume any responsibility or liability resulting from the use of such information.

 

 

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