Flash News Investment - - RECOMMENDATIONS -

Cen­tury Enka is en­gaged in the busi­ness of ny­lon tyre cord fab­ric and polyester fil­a­ment yarn. It is a joint ven­ture of B.K Birla group and Ac­cordis group of the Nether­lands. It is a debt-free com­pany and has been main­tain­ing healthy div­i­dend pay­out of 26.8 per­cent. For FY17, the board of di­rec­tors has rec­om­mended div­i­dend of Rs 7 per eq­uity share. The rev­enue in FY17 has in­creased marginally, but profit mar­gins have im­proved on a YoY ba­sis. The EBITDA mar­gin im­proved from 11.8 per­cent to 14.7 per­cent YoY and PAT mar­gin im­proved to 7.7 per­cent from 5.2 per­cent. Growth in ur­ban­iza­tion and in­creas­ing de­mand in in­dus­tries would be the ma­jor growth driv­ers for the com­pany. On the ba­sis of above fac­tors, we rec­om­mend our read­ers to BUY the scrip.

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