Century Textiles stock may give 20% return in six months

Century Textiles and Industries Ltd promoted by the B.K. Birla group has interests in diverse industries such as Cotton Textiles (Birla Century) Pulp and Paper (Century) and Real Estate (Birla Estates). Birla Estates entered into the residential and commercial real estate in 2016 with a vision to transform the real estate sector by delivering an exceptional experience and creating value for every stakeholder. The company proposes to develop land parcels held by the Century group, apart from entering into strategic tie-ups and alliances. Birla Estates plans to focus on markets such as Maharashtra, Bengaluru, NCR and Pune. It has existing commercial buildings on lease viz, Birla Centurion and Birla Aurora along with residential properties such as Birla Vanya in Maharashtra, Birla Alokya in Bengaluru and Birla Navya in Gurugram. Birla Century has a 100-acre manufacturing facility with the most sophisticated machinery and equipment to produce an array of textiles, from suiting and shirting to fine fabrics and household linen. Its research and development centre is equipped with a Design Studio for continuous innovation in tune with the latest international trends. Century paper and pulp manufactures a wide range of paper products including writing and printing paper, tissue paper, and paper board from its manufacturing unit located in Uttarakhand. The facility commissioned in 1984 also contains a manufacturing unit for producing raw material for viscose filament yarn, staple fibre, and paper grade pulp. Century has over the years augmented its capacity by commissioning a tissue paper plant along with three sheet-cutting units across the country. Despite the second wave of the pandemic, Century has done well with most of the sectors doing well. Revenue, PAT and EBITDA margins have gone up favourably for the first quarter of June 2021. With economic activity expected to gain momentum over the coming quarters led by favourable monetary conditions, abundant liquidity and optimism from the vaccine rollout, Century should show solid performance in the next few quarters. Since all three sectors—paper and pulp, real estate and textiles—are expected to do well, the Century stock now at Rs 950 can appreciate by 20% in the next six months.
Rajiv Kapoor is a share broker, certified mutual fund expert and MDRT insurance agent.