Why Century Textiles Share Price is Rising

The Aditya Birla Group is a prominent conglomerate with a diverse portfolio spanning various industries, including textiles, cement, metals, and financial services.

Renowned for its entrepreneurial spirit and commitment to excellence, the Aditya Birla Group has established a strong presence across the globe.

Century Textiles is a key player within the Aditya Birla Group, specialising in the textile industry. The company has a long-standing reputation for producing high-quality fabrics and textiles, serving both domestic and international markets.

Century Textiles has been capturing investor attention with its impressive stock performance. The company's share price has surged 20.5% in the past week, reflecting growing optimism about its prospects.

This rally is likely driven by company's latest announcement. Let's delve deeper into the announcement to understand the reasons behind this surge.

Strategic Land Acquisition

On 10 September 2024 Century Textiles and Industries announced that it has acquired a 10-acre leasehold land parcel in Worli, Mumbai, from Nusli Wadia.

The company paid Rs 11 billion (bn) for this prime real estate. This acquisition is a significant step for the company, merging its existing leasehold interest with full ownership rights.

The land will be developed through Birla Estates, Century Textile's real estate subsidiary. Worli is a high-demand area, known for its luxury real estate market. Buyers from South Mumbai and beyond are drawn to the premium lifestyle this location offers.

The 10-acre plot adds a potential booking value of Rs 140 bn to the company. Including other projects, its total landholding in Worli now spans 30 acres, with a total booking value of Rs 280 bn.

This also includes Birla Niyaara, a highly successful luxury project in the area, which has generated over Rs 57 bn in sales since its launch.

In addition to the Worli development, in late August, the company entered into a co-development agreement for a 131-acre land parcel in Noida. The company has also made progress with new projects in Delhi, Gurugram, and its first international office in Dubai.

The company's real estate division, under Birla Estates, has seen strong sales across multiple projects.

In FY24, the company sold 1.7 million (m) square feet, worth Rs 39.9 bn, across all its developments.

This growth in real estate is driving a rise in Century Textiles' share price as investors see potential in its expanding portfolio and high-revenue projects.

What Next?

Century Textiles is set to focus heavily on its real estate segment in the coming years. The company plans to launch Rs 120 bn worth of projects in the current financial year.

Over the next few years, Century Textiles aims to add Rs 150-160 billion of gross development value (GDV) annually to its portfolio.

Real estate remains a key area for growth, with Century Textiles capitalising on rising demand in premium markets like Mumbai, Gurugram, and Pune. The company has already recorded Rs 95 bn in sales from its launched projects and expects the ongoing real estate cycle to remain strong.

Century Textiles is also exploring new markets. The recent opening of an international office in Dubai highlights its ambition to reach clients in the Gulf region. The focus is on expanding both residential and commercial developments, leveraging urbanisation and smart city growth in India.

In its pulp and paper segment, Century Textiles is looking to address cost challenges by reducing raw material expenses and increasing the use of sustainable materials.

This segment is expected to see moderate recovery, driven by seasonal demand and improvements in the FMCG and pharma sectors.

How Century Textile Share Price has Performed Recently

In the past five days, Century Textile share price has surged 20.5%. In the last month, it has rallied 35%.

The stock price has rallied 124.8% in the 2024. Additionally, it has surged 175.9% in the last year.

The stock touched its 52-week high of Rs 2,932.1 on 16 September 2024 and a 52-week low of Rs 1,008.5 on 21 September 2023.

About Century Textile

From a single-unit textile entity in 1897, Century Textiles and Industries has transformed into a commercial powerhouse with interests in diverse industries.

A part of the Aditya Birla group, Century Textiles and Industries is an India-based company, which is principally engaged in the manufacturing of textiles, cement, pulp and paper, and real estate.

The textile segment includes yam, fabric, viscose filament yam and tire yarn. The pulp and paper segment include pulp, writing, printing paper, tissue paper, and multilayer packaging board.

The real estate segment includes residential projects, leased properties, and investment properties.

The others segment includes salt works and chemicals.

The company's subsidiaries include Birla Estates, Birla Century Exports, Birla Century International, Avarna Projects, Birla Tisya, and Birla Arnaa. Birla Tisya LLP is engaged in real estate business.

For more details about the company, you can have a look at Century Textiles' factsheet and Century Textiles' quarterly results on our website.

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