NSEI:CENTENKA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet, undervalued and pays a dividend.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

CENTENKA

-0.5%

IN Luxury

0.5%

IN Market


1 Year Return

-36.3%

CENTENKA

8.3%

IN Luxury

0.9%

IN Market

Return vs Industry: CENTENKA underperformed the Indian Luxury industry which returned 8.3% over the past year.

Return vs Market: CENTENKA underperformed the Indian Market which returned 0.9% over the past year.


Share holder returns

CENTENKAIndustryMarket
7 Day0%-0.5%0.5%
30 Day-7.3%5.3%1.0%
90 Day-17.7%4.4%-3.2%
1 Year-34.2%-36.3%9.1%8.3%2.8%0.9%
3 Year-36.9%-41.6%49.5%47.7%20.3%14.3%
5 Year26.3%8.9%108.9%104.8%43.1%29.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Century Enka undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: CENTENKA (₹169.65) is trading below our estimate of fair value (₹524.18)

Significantly Undervalued: CENTENKA is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: CENTENKA is good value based on its PE Ratio (5.1x) compared to the Luxury industry average (10.2x).

PE vs Market: CENTENKA is good value based on its PE Ratio (5.1x) compared to the Indian market (13.1x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: CENTENKA is good value based on its PB Ratio (0.4x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

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

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: CENTENKA's forecast earnings growth (4.8% per year) is below the savings rate (7.6%).

Earnings vs Market: CENTENKA's earnings (4.8% per year) are forecast to grow slower than the Indian market (18.3% per year).

High Growth Earnings: CENTENKA's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if CENTENKA's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if CENTENKA's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if CENTENKA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Century Enka performed over the past 5 years?

13.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CENTENKA's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: CENTENKA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CENTENKA had negative earnings growth (-16%) over the past year, making it difficult to compare to the Luxury industry average (7.8%).


Return on Equity

High ROE: CENTENKA's Return on Equity (7.6%) is considered low.


Return on Assets

ROA vs Industry: CENTENKA's Return on Assets is below or equal to the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: CENTENKA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Century Enka's financial position?


Financial Position Analysis

Short Term Liabilities: CENTENKA's short term assets (₹6.6B) exceeds its short term liabilities (₹1.3B)

Long Term Liabilities: CENTENKA's short term assets (6.6B) exceeds its long term liabilities (1.5B)


Debt to Equity History and Analysis

Debt Level: CENTENKA's debt to equity ratio (3.4%) is considered satisfactory

Reducing Debt: CENTENKA's debt to equity ratio has reduced from 29.2% to 3.4% over the past 5 years.

Debt Coverage: CENTENKA's debt is well covered by operating cash flow (376.1%).

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


Balance Sheet

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

Debt Coverage by Assets: CENTENKA's debt is covered by short term assets (assets are 20.248150x debt).


Next Steps

Dividend

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

4.09%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%0.6%markettop25%2.5%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: CENTENKA's dividend (4.09%) is higher than the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: CENTENKA's dividend (4.09%) is in the top 25% of dividend payers in the Indian market (2.46%)

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.1%), CENTENKA'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

What is the CEO of Century Enka's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average board tenure


CEO

Omprakash Chitlange (62yo)

2.4yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Indian market.

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


Board Age and Tenure

4.3yrs

Average Tenure

69yo

Average Age

Experienced Board: CENTENKA's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Omprakash Chitlange (62yo)

    MD & Whole-Time Director

    • Tenure: 2.4yrs
    • Compensation: ₹34.28m
  • Chitranjandas Gagrani

    Compliance Officer & Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹4.69m
  • Krishnagopal Ladsaria

    Chief Financial Officer

    • Tenure: 2.7yrs
    • Compensation: ₹11.39m

Board Members

  • Bansi Mehta (84yo)

    Non Executive & Independent Director

    • Tenure: 0yrs
    • Compensation: ₹1.15m
  • Rajashree Birla (74yo)

    Vice Chairperson

    • Tenure: 3.7yrs
    • Compensation: ₹560.00k
  • Sohanlal Jain (69yo)

    Non Executive & Independent Director

    • Tenure: 9.9yrs
    • Compensation: ₹640.00k
  • Omprakash Chitlange (62yo)

    MD & Whole-Time Director

    • Tenure: 2.4yrs
    • Compensation: ₹34.28m
  • Krishna Thar (63yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: ₹640.00k

Company Information

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


Key Information

  • Name: Century Enka Limited
  • Ticker: CENTENKA
  • Exchange: NSEI
  • Founded: 1965
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹3.675b
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:44
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)