BSE:500280

Stock Analysis Report

Executive Summary

Century Enka Limited manufactures and sells synthetic yarns in India and internationally.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


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Share Price & News

How has Century Enka's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500280 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

500280

0.08%

IN Luxury

-0.7%

IN Market


1 Year Return

-31.6%

500280

18.0%

IN Luxury

10.0%

IN Market

Return vs Industry: 500280 underperformed the Indian Luxury industry which returned 18% over the past year.

Return vs Market: 500280 underperformed the Indian Market which returned 10% over the past year.


Shareholder returns

500280IndustryMarket
7 Day-1.8%0.08%-0.7%
30 Day-17.0%4.9%-0.3%
90 Day-4.7%11.4%3.2%
1 Year-29.5%-31.6%18.8%18.0%12.0%10.0%
3 Year-44.2%-48.3%55.1%53.3%23.9%17.1%
5 Year22.4%5.6%110.5%103.6%38.3%25.6%

Price Volatility Vs. Market

How volatile is Century Enka's share price compared to the market and industry in the last 5 years?


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Valuation

Is Century Enka undervalued compared to its fair value and its price relative to the market?

47.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 500280 (₹168.15) is trading below our estimate of fair value (₹317.33)

Significantly Below Fair Value: 500280 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 500280 is good value based on its PE Ratio (4.4x) compared to the Luxury industry average (11.4x).

PE vs Market: 500280 is good value based on its PE Ratio (4.4x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500280's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500280 is good value based on its PB Ratio (0.4x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Century Enka forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.7%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Century Enka has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Century Enka performed over the past 5 years?

13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500280 has high quality earnings.

Growing Profit Margin: 500280's current net profit margins (5.6%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: 500280's earnings have grown by 13.6% per year over the past 5 years.

Accelerating Growth: 500280's earnings growth over the past year (1.2%) is below its 5-year average (13.6% per year).

Earnings vs Industry: 500280 earnings growth over the past year (1.2%) underperformed the Luxury industry 6.4%.


Return on Equity

High ROE: 500280's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Century Enka's financial position?


Financial Position Analysis

Short Term Liabilities: 500280's short term assets (₹6.5B) exceed its short term liabilities (₹972.2M).

Long Term Liabilities: 500280's short term assets (₹6.5B) exceed its long term liabilities (₹1.1B).


Debt to Equity History and Analysis

Debt Level: 500280's debt to equity ratio (2.5%) is considered satisfactory.

Reducing Debt: 500280's debt to equity ratio has reduced from 20.8% to 2.5% over the past 5 years.

Debt Coverage: 500280's debt is well covered by operating cash flow (316.1%).

Interest Coverage: 500280 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 500280 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500280's debt is covered by short term assets (assets are 25.6x debt).


Next Steps

Dividend

What is Century Enka's current dividend yield, its reliability and sustainability?

4.16%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 500280's dividend (4.16%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 500280's dividend (4.16%) is in the top 25% of dividend payers in the Indian market (2.56%)


Stability and Growth of Payments

Stable Dividend: 500280's dividends per share have been stable in the past 10 years.

Growing Dividend: 500280's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.2%), 500280's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average board tenure


CEO

Omprakash Chitlange (62yo)

2.8yrs

Tenure

₹34,277,000

Compensation

Mr. Omprakash Ramlal Chitlange has been Managing Director and Whole-Time Director of Century Enka Limited since May 17, 2017 and May 16, 2017, respectively. Mr. Chitlange served as Senior President of Cent ...


CEO Compensation Analysis

Compensation vs Market: Omprakash's total compensation ($USD476.72K) is above average for companies of similar size in the Indian market ($USD50.21K).

Compensation vs Earnings: Omprakash's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Omprakash Chitlange
MD & Whole-Time Director2.8yrs₹34.28mno data
Bansidhar Mehta
Non Executive & Independent Director0yrs₹1.15m0.039% 1.4m
Rajashree Birla
Chairperson0yrs₹560.00k0.12% 4.4m
Usha Sangwan
Independent Director0yrsno datano data
Sohanlal Jain
Non Executive & Independent Director10.3yrs₹640.00k0.00057% 20.9k
Krishna Thar
Independent Director5.3yrs₹640.00kno data

5.3yrs

Average Tenure

66yo

Average Age

Experienced Board: 500280's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Century Enka Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Century Enka Limited
  • Ticker: 500280
  • Exchange: BSE
  • Founded: 1965
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹3.674b
  • Shares outstanding: 21.85m
  • Website: https://www.centuryenka.com

Number of Employees


Location

  • Century Enka Limited
  • Plot no. 72 & 72-A
  • MIDC Bhosari
  • Pune
  • Maharashtra
  • 411026
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500280BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 1995
CENTENKANSEI (National Stock Exchange of India)YesEquity SharesININRMay 1995

Biography

Century Enka Limited manufactures and sells synthetic yarns in India and internationally. The company offers nylon tyre cord fabrics, including yarn, greige fabrics, and dipped fabrics for reinforcement of bias tires, which are used in motor cycles, scooters, light commercial vehicles, heavy commercial vehicles, and off the road. It also provides nylon filament yarns, such as mono filament, mother, multifilament, and tow yarns for use in the apparel industry. In addition, the company offers nylon chips and nylon industrial yarns. Century Enka Limited was founded in 1965 and is based in Pune, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 12:49
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.