Century Enka Limited (CENTENKA) AI Stock Analysis

• Market Cap: ₹8.76B
• Dividend Yield: 2.28%
• Average Volume (3M): 804.00
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.02
• Revenue Growth: -11.89%
• EPS Growth: -17.27%
• Country: IN
• Employees: 1,544
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): 10.86
• Shares Outstanding: 21,850,588
• 10 Day Avg. Volume: 556
• 30 Day Avg. Volume: 804
• PEG Ratio: 0.32
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 17.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ₹439.00 ▼(-4.13% Downside)
• Action: Downgraded Date: 09/24/25
• Date: Action: Downgraded 09/24/25

Century Enka Limited's overall stock score is driven primarily by its strong financial performance, characterized by robust revenue growth and a solid balance sheet. While technical indicators suggest potential short-term weakness, the stock's moderate valuation and reasonable dividend yield offer a balanced investment proposition.

Positive Factors

Vertical integration / diversified product mix

Century Enka’s integrated model (chips + yarn) lets it internalize feedstock, control product quality and capture margin across stages. Over months, vertical integration reduces input pass-through volatility and supports stable gross margins versus pure-play yarn makers.

Very conservative balance sheet

Extremely low leverage and a high equity ratio provide durable financial flexibility: supports capex or working-capital needs, cushions cyclical downturns, and reduces refinancing risk, enabling steady operations and strategic investments over the next several quarters.

Improving cash generation

Positive free cash flow and strong OCF-to-net-income conversion reflect better cash conversion of earnings, enabling self-funded maintenance capex, dividend support and deleveraging. This improvement is a durable sign of operational cash health over coming months.

Negative Factors

Recent revenue decline

A sharp recent revenue decline signals near-term demand softness or volume loss in key end markets. Even with longer-term growth history, a large recent drop can persist several quarters, pressuring utilization, pricing leverage and near-term margin recovery.

Thin net profitability

A net margin near 3% leaves limited buffer for cost shocks or raw material swings. For a commodity-linked textile supplier, low absolute profitability constrains reinvestment, reduces resilience to sustained input-cost rises, and limits ability to absorb cyclical demand drops.

Margin volatility & input-cost sensitivity

Operating margin volatility and a falling EBITDA margin point to sensitivity to caprolactam and energy costs. Structural input-price exposure means margins can swing across cycles, complicating forecasting and requiring disciplined cost management to sustain profitability over months.

Century Enka Limited Business Overview & Revenue Model

Company Description

Century Enka Limited engages in the manufacture and sale of synthetic yarns and related products in India and internationally. The company offers nylon filament yarns, such as mono filament, mother, multifilament, and tow yarns, as well as fully drawn, partially and high oriented, drawn textured, air textured, draw winder, and jumbo beam yarns. It also provides tire cord fabrics, including yarn, greige fabrics, and dipped fabrics for reinforcement of tires, which are used in motorcycles, scooters, light and heavy commercial vehicles, and off the road. The company was incorporated in 1965 and is headquartered in Pune, India.

How the Company Makes Money

Century Enka makes money primarily by manufacturing and selling nylon products. The main revenue stream comes from sales of Nylon 6 yarn to downstream users (such as textile processors and industrial customers using nylon for applications like tire cord fabric and other technical textiles). A second key revenue stream is sales of Nylon 6 chips, which are sold either as an intermediate feedstock for customers’ further processing or used internally to produce nylon yarn, allowing the company to capture value across stages of the nylon value chain. Earnings are driven by sales volumes, product mix (yarn versus chips and any differentiated grades), and the spread between realized selling prices and input costs (notably caprolactam and energy), which can affect margins in commodity-linked synthetic materials. Specific details on significant partnerships contributing to earnings are null.

Century Enka Limited Financial Statement Overview

Summary

Century Enka Limited demonstrates solid financial health with strong revenue growth, increasing profitability, and a robust balance sheet. While cash flow is improving, there remains potential for better capital expenditure management. Overall, the company is well-positioned financially with strengths in revenue expansion and stability in equity.

Income Statement

Century Enka Limited shows strong revenue growth with a CAGR of about 7.5% over the past five years. The company has improved its gross profit margin to 22.8% in the latest fiscal year. Net profit margin also increased to 3.32%, indicating improved profitability. However, the EBIT margin has fluctuated, and the EBITDA margin decreased slightly to 5.73% from the previous year, reflecting some operational challenges.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.026, indicating conservative leverage practices. Return on equity remains stable at 4.69%, showing consistent utilization of equity. The equity ratio is strong at 79.56%, highlighting financial stability and low reliance on debt.

Cash Flow

Cash flow performance is improving, with free cash flow turning positive in the latest period, indicating better cash management. Operating cash flow to net income ratio is favorable at 1.77, suggesting effective conversion of earnings to cash. However, the free cash flow to net income ratio is slightly below 1, pointing to room for improvement in capital expenditures.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	17.48B	20.02B	17.44B	20.68B	20.98B	12.15B
Gross Profit	3.75B	4.56B	3.60B	1.62B	4.56B	2.86B
EBITDA	1.17B	1.15B	1.15B	1.61B	2.85B	1.34B
Net Income	584.60M	664.70M	427.50M	903.20M	1.84B	709.20M
Balance Sheet
Total Assets	17.49B	17.82B	16.84B	16.23B	15.23B	13.40B
Cash, Cash Equivalents and Short-Term Investments	3.64B	3.42B	2.76B	3.20B	2.65B	3.46B
Total Debt	364.00M	368.20M	522.50M	678.40M	149.20M	131.50M
Total Liabilities	3.13B	3.64B	3.20B	3.01B	2.72B	2.51B
Stockholders Equity	14.36B	14.18B	13.64B	13.22B	12.51B	10.89B
Cash Flow
Free Cash Flow	330.70M	664.40M	-269.50M	-196.30M	-302.10M	960.90M
Operating Cash Flow	458.50M	1.18B	880.60M	2.19B	555.60M	1.09B
Investing Cash Flow	-164.70M	-758.40M	-469.80M	-2.51B	-412.80M	-760.00M
Financing Cash Flow	-238.80M	-419.50M	-429.10M	291.80M	-169.50M	-285.90M

Century Enka Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 457.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CENTENKA, the sentiment is Negative. The current price of 457.9 is above the 20-day moving average (MA) of 425.86, above the 50-day MA of 437.19, and below the 200-day MA of 468.17, indicating a bearish trend. The MACD of -10.62 indicates Positive momentum. The RSI at 32.30 is Neutral, neither overbought nor oversold. The STOCH value of 29.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CENTENKA.

Century Enka Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CANTABIL	70 Outperform	₹20.70B	13.08	―	0.39%	19.90%	27.94%
CENTENKA	69 Neutral	₹8.76B	10.15	―	2.28%	-11.89%	-17.27%
SARLAPOLY	67 Neutral	₹6.60B	37.01	―	3.38%	-3.48%	21.37%
RSWM	66 Neutral	₹6.35B	73.65	―	―	5.54%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AYMSYNTEX	60 Neutral	₹10.51B	178.44	―	―	-2.89%	-94.82%
INDORAMA	52 Neutral	₹8.39B	36.11	―	―	30.79%	―

Century Enka Limited Corporate Events

Century Enka to Contest Rs 38 Lakh Income Tax Penalty for AY 2020-21

Century Enka Limited has disclosed that it received a demand notice from the Income Tax Department’s National Faceless Assessment Centre, acting as the National Faceless Penalty Centre, imposing a penalty of Rs 38.29 lakh under Section 270A of the Income Tax Act for underreported income in assessment year 2020-21. The penalty, calculated at 200% of the assessed tax differential arising from a mismatch between returned and assessed income, is being contested by the company, which maintains that the order is not expected to have any material financial impact on its operations or overall financial position.

Century Enka Releases Q3 and 9M FY26 Earnings Presentation Ahead of Investor Call

Century Enka Limited has released its earnings presentation for the third quarter and nine months of FY26, ahead of an earnings conference call scheduled for 9 February 2026 to discuss its financial performance. The company has submitted this presentation to the stock exchanges to provide investors and other market participants with detailed information on its Q3 and nine-month results, reinforcing its ongoing compliance with disclosure requirements and its focus on transparent communication with stakeholders.

Century Enka Publishes Unaudited Q3 and Nine-Month FY26 Financial Results in Newspapers

Century Enka Limited has published extracts of its unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, following approval by its Board of Directors on 6 February 2026. The results have been disseminated to investors through advertisements in leading dailies Business Standard (all editions) and the Pune edition of Loksatta, underscoring the company’s compliance with disclosure norms and its efforts to maintain transparency and timely communication with shareholders and market participants.

Century Enka Schedules Q3FY26 Earnings Call for 9 February

Century Enka Limited has scheduled an earnings conference call with investors on 9 February 2026 at 11:00 a.m. IST to discuss its financial results for the third quarter of fiscal year 2025-26. The call will feature Managing Director Suresh Sodani and Chief Financial Officer Yogesh Shah, and is accessible to both domestic and international participants through designated access numbers and a registration-based “Diamond Pass,” underscoring the company’s efforts to maintain transparent, structured communication with the market and its stakeholders.