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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500280 | NSE: CENTENKA

Century Enka Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:20 pm

Market Cap 1,330 Cr.
Current Price 610
High / Low865/378
Stock P/E18.1
Book Value 641
Dividend Yield1.64 %
ROCE3.61 %
ROE2.56 %
Face Value 10.0
PEG Ratio-4.07

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Century Enka Ltd

Competitors of Century Enka Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bhudevi Infra Projects Ltd 31.8 Cr. 69.269.2/24.617.6 0.500.00 %68.0 %423 % 10.0
Baroda Rayon Corporation Ltd 412 Cr. 180220/15028.6 1500.00 %1.77 %2.20 % 10.0
Paras Petrofils Ltd 101 Cr. 3.034.63/2.14 0.620.00 %3.51 %4.08 % 1.00
JBF Industries Ltd 35.2 Cr. 4.30/0.32 3480.00 %%% 10.0
Century Enka Ltd 1,330 Cr. 610865/37818.1 6411.64 %3.61 %2.56 % 10.0
Industry Average614.33 Cr173.3116.16228.020.33%19.22%107.96%8.20

All Competitor Stocks of Century Enka Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales423539563572568563468473428396451469528
Expenses362480488504507526448450407387432435487
Operating Profit6159766861382123219183441
OPM %14%11%13%12%11%7%4%5%5%2%4%7%8%
Other Income57553547912677
Interest0000000111211
Depreciation910101010910121113131313
Profit before tax5655706254331417186102734
Tax %24%25%28%20%25%22%29%14%23%30%25%24%29%
Net Profit434151504026101514572024
EPS in Rs19.4718.9423.1522.7218.4411.744.566.646.272.063.409.2711.12

Last Updated: September 12, 2024, 2:20 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 12, 2024, 2:20 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,5521,4671,2191,1481,1851,4161,7911,4231,2232,0982,0721,7441,844
Expenses1,4141,2891,1031,0141,0031,3051,6411,3301,1021,8341,9301,6611,741
Operating Profit1381781161351831121519312026414283102
OPM %9%12%9%12%15%8%8%7%10%13%7%5%6%
Other Income-5107454317421421193332
Interest29211710633321255
Depreciation72714341424245464140415052
Profit before tax3196638814010911986922441186177
Tax %30%34%42%33%35%36%36%-10%23%25%23%24%
Net Profit226337599170779671184904656
EPS in Rs10.0228.8016.7427.0541.6332.0835.0543.7232.4684.2841.3921.0025.85
Dividend Payout %60%21%36%28%17%22%20%18%25%12%24%48%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)186.36%-41.27%59.46%54.24%-23.08%10.00%24.68%-26.04%159.15%-51.09%-48.89%
Change in YoY Net Profit Growth (%)0.00%-227.63%100.73%-5.22%-77.31%33.08%14.68%-50.72%185.20%-210.24%2.20%

Century Enka Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:2%
5 Years:-1%
3 Years:13%
TTM:12%
Compounded Profit Growth
10 Years:-6%
5 Years:-14%
3 Years:-19%
TTM:72%
Stock Price CAGR
10 Years:15%
5 Years:28%
3 Years:14%
1 Year:45%
Return on Equity
10 Years:8%
5 Years:8%
3 Years:8%
Last Year:3%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:32 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital22222222222222222222222222
Reserves6326796947568338799331,0031,0671,2291,3001,3461,379
Borrowings27719515270534738231315685252
Other Liabilities179174180168213216238216238257233268421
Total Liabilities1,1101,0701,0491,0161,1191,1641,2311,2641,3401,5231,6231,6881,874
Fixed Assets670596612602569575548528492476645806786
CWIP3221226423268106415
Investments399809887168262302260344345409
Other Assets433443416333447499513471545718528533664
Total Assets1,1101,0701,0491,0161,1191,1641,2311,2641,3401,5231,6231,6881,874

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +13015212819261561221421095621988
Cash from Investing Activity +-12-32-53-83-20-8-110-104-76-41-251-47
Cash from Financing Activity +-117-119-76-108-43-28-31-38-29-1729-43
Net Cash Flow11-11-220-18-14-3-3-2

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-139.00-17.00-36.0065.00130.0065.00113.0070.00107.00249.0074.0031.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days404749505853423969423841
Inventory Days6980977813490689697856486
Days Payable81416174030294365332841
Cash Conversion Cycle1011141311101521138092102937486
Working Capital Days6483948010092758498796475
ROCE %8%12%9%11%17%9%12%8%8%20%8%4%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters24.80%24.80%24.80%24.80%24.79%24.79%24.79%24.79%24.86%24.86%24.86%24.86%
FIIs4.67%4.88%5.26%5.35%4.41%3.62%3.35%3.42%3.35%2.95%2.91%3.44%
DIIs5.33%5.34%7.97%7.92%6.15%5.20%4.74%5.11%5.11%6.27%6.27%9.62%
Public65.20%64.98%61.97%61.94%64.66%66.39%67.11%66.68%66.68%65.91%65.96%62.10%
No. of Shareholders46,59244,66544,23743,47243,14148,37347,22146,49443,98942,42941,07938,059

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Active Fund1,720,0530.8999.771,720,0532024-11-120%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23
FaceValue10.0010.00
Basic EPS (Rs.)19.5641.34
Diluted EPS (Rs.)19.5641.34
Cash EPS (Rs.)44.0060.26
Book Value[Excl.RevalReserv]/Share (Rs.)624.43604.90
Book Value[Incl.RevalReserv]/Share (Rs.)624.43604.90
Revenue From Operations / Share (Rs.)798.24948.31
PBDIT / Share (Rs.)53.2273.85
PBIT / Share (Rs.)30.2254.99
PBT / Share (Rs.)27.7753.91
Net Profit / Share (Rs.)21.0041.39
NP After MI And SOA / Share (Rs.)19.5741.34
PBDIT Margin (%)6.667.78
PBIT Margin (%)3.785.79
PBT Margin (%)3.475.68
Net Profit Margin (%)2.634.36
NP After MI And SOA Margin (%)2.454.35
Return on Networth / Equity (%)3.136.83
Return on Capital Employeed (%)4.378.16
Return On Assets (%)2.535.56
Long Term Debt / Equity (X)0.020.03
Total Debt / Equity (X)0.030.04
Asset Turnover Ratio (%)1.050.00
Current Ratio (X)4.575.43
Quick Ratio (X)3.023.82
Inventory Turnover Ratio (X)4.360.00
Dividend Payout Ratio (NP) (%)51.1124.19
Dividend Payout Ratio (CP) (%)23.4916.61
Earning Retention Ratio (%)48.8975.81
Cash Earning Retention Ratio (%)76.5183.39
Interest Coverage Ratio (X)21.7368.67
Interest Coverage Ratio (Post Tax) (X)9.5839.49
Enterprise Value (Cr.)921.42799.07
EV / Net Operating Revenue (X)0.520.38
EV / EBITDA (X)7.924.95
MarketCap / Net Operating Revenue (X)0.500.36
Retention Ratios (%)48.8875.80
Price / BV (X)0.640.56
Price / Net Operating Revenue (X)0.500.36
EarningsYield0.040.12

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Century Enka Ltd as of November 22, 2024 is: 301.88

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 22, 2024, Century Enka Ltd is Overvalued by 50.51% compared to the current share price 610.00

Intrinsic Value of Century Enka Ltd as of November 22, 2024 is: 288.44

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 22, 2024, Century Enka Ltd is Overvalued by 52.71% compared to the current share price 610.00

Last 5 Year EPS CAGR: -4.45%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (979.23 cr) compared to borrowings (81.15 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (1.15 cr) and profit (101.85 cr) over the years.
  1. The stock has a low average ROCE of 10.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 82.33, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 104.00, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Century Enka Ltd:
    1. Net Profit Margin: 2.63%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 4.37% (Industry Average ROCE: 19.22%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 3.13% (Industry Average ROE: 107.96%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 9.58
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 3.02
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 18.1 (Industry average Stock P/E: 16.16)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.03
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Century Enka Ltd. is a Public Limited Listed company incorporated on 17/11/1965 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24304PN1965PLC139075 and registration number is 139075. Currently Company is involved in the business activities of Manufacture of other textiles. Company’s Total Operating Revenue is Rs. 2097.83 Cr. and Equity Capital is Rs. 21.85 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Manmade Fibre - PFY/PSFPlot No. 72 & 72-A, MIDC, Bhosari, Pune Maharashtra 411026cel.registeredoffice@birlacentury.com
http://www.centuryenka.com
Management
NamePosition Held
Mrs. Rajashree BirlaChairperson
Mr. Suresh SodaniManaging Director
Mrs. Krupa R GandhiIndependent Director
Mr. Krishna S TharIndependent Director
Mr. Ashish RazdanIndependent Director
Mr. Jayant DhobleyNon Executive Director

FAQ

What is the latest intrinsic value of Century Enka Ltd?

The latest intrinsic value of Century Enka Ltd as on 21 November 2024 is ₹301.88, which is 50.51% lower than the current market price of ₹610.00.

What is the Market Cap of Century Enka Ltd?

The Market Cap of Century Enka Ltd is 1,330 Cr..

What is the current Stock Price of Century Enka Ltd as on 21 November 2024?

The current stock price of Century Enka Ltd as on 21 November 2024 is ₹610.

What is the High / Low of Century Enka Ltd stocks in FY 2024?

In FY 2024, the High / Low of Century Enka Ltd stocks is 865/378.

What is the Stock P/E of Century Enka Ltd?

The Stock P/E of Century Enka Ltd is 18.1.

What is the Book Value of Century Enka Ltd?

The Book Value of Century Enka Ltd is 641.

What is the Dividend Yield of Century Enka Ltd?

The Dividend Yield of Century Enka Ltd is 1.64 %.

What is the ROCE of Century Enka Ltd?

The ROCE of Century Enka Ltd is 3.61 %.

What is the ROE of Century Enka Ltd?

The ROE of Century Enka Ltd is 2.56 %.

What is the Face Value of Century Enka Ltd?

The Face Value of Century Enka Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Century Enka Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE