Multibagger Stock: Century Textile skyrockets over 270% in 16 months, up 675% in 4 years; is now a good time to buy?

One specified banal is Century Textile& Industries arsenic the company's shares person been showing singular resilience implicit the past 16 months, steadily gaining without immoderate important pullbacks. From a trading terms of ₹608 apiece successful February past year, the shares person skyrocketed by 274% to commercialized astatine the existent trading terms of ₹2,275 apiece.

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Remarkably, the banal has closed successful antagonistic territory for lone 4 months with minimal corrections. The banal has surged by 675% implicit the past 4 years.

Incorporated successful 1897, Century Textile and Industries Limited has evolved from a single-unit textile mill into a diversified conglomerate with a beingness successful existent property and paper.

Emerging arsenic a cardinal player

The institution is emerging arsenic a starring subordinate successful the Indian existent property manufacture arsenic its income bookings roseate from ₹4.6 cardinal successful FY20 to ₹39.9 cardinal successful FY24, reflecting a CAGR of 71%. It aims to execute a income booking milestone of ₹100 cardinal by FY26.

Since entering the existent property marketplace successful FY20, the institution has launched projects with a full saleable country of 6.22 cardinal sq. ft. and has sold 5.31 cardinal sq. ft. (85% of the inventory) to date.

The institution is presently focusing connected 4 cardinal markets successful India: MMR, Bengaluru, NCR, and Pune, delivering premium existent property projects crossed residential, commercial, and mixed-use segments. It is processing onshore parcels done outright purchases arsenic good arsenic asset-light associated ventures, including its ain onshore parcels.

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It has been successfully closing lucrative concern improvement deals since past year, utilizing a premix of associated improvement agreements (JDAs) and outright purchases astatine little than 15% of GDV. In the erstwhile year, the company's concern improvement totaled a GDV of implicit ₹160 billion.

In June 2024, the institution acquired 2 projects successful Gurugram and Pune with a GDV of ₹75 billion. The company’s guidance for concern improvement successful FY25 is ₹150–200 billion, and home brokerage Antique Stock Broking expects it to easy surpass this people with respective ample projects successful the pipeline.

Strong surplus currency travel visibility

With each its ongoing projects importantly sold, the brokerage believes that the institution has beardown visibility of surplus currency flow. From its six ongoing projects, the institution has receivables of ₹63.9 billion, with an estimated outgo of ₹22.0 cardinal to implicit these projects, resulting successful a beardown surplus currency travel visibility of astir ₹32.6 billion.

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This surplus currency flow, adjacent without assuming immoderate further sales, is realizable implicit the adjacent 3–4 years and would beryllium much than capable to work the full existing indebtedness of ₹24.8 billion, it noted.

Antique Stock Broking remains structurally affirmative connected the company's maturation prospects successful the mean to agelong term. The banal is the brokerage's apical pick, and it reiterates a 'buy' standing with a revised people terms of ₹3,470.

Disclaimer: The views and recommendations fixed successful this nonfiction are those of idiosyncratic analysts. These bash not correspond the views of Mint. We counsel investors to cheque with certified experts earlier taking immoderate concern decisions.

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Published: 27 Jun 2024, 06:00 PM IST