Century Enka Limited (CENTENKA) AI Stock Analysis

• Market Cap: ₹9.48B
• Dividend Yield: 2.28%
• Average Volume (3M): 804.00
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.01
• Revenue Growth: -11.89%
• EPS Growth: -17.27%
• Country: IN
• Employees: 1,544
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): 10.22
• 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: ₹475.00 ▲(3.73% Upside)

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

Very conservative capital structure

Century Enka’s minimal leverage and high equity ratio provide durable financial flexibility. Low debt lowers refinancing and interest risk, enabling the company to fund working capital or strategic capex through cycles, supporting resilience versus commodity-driven revenue swings.

Vertical integration across chips and yarn

Owning both Nylon 6 chip production and yarn manufacturing creates a structural advantage: it secures feedstock, allows margin capture across the value chain, and reduces reliance on third-party caprolactam purchases, helping stabilize gross margins over the medium term.

Improving cash generation and conversion

Positive free cash flow and strong operating cash conversion signal improving financial discipline and real cash generation. That enhances the firm’s ability to self-fund maintenance capex, support dividends, and absorb cyclical downturns without resorting to leverage.

Negative Factors

Recent revenue and EPS contraction

Significant recent declines in revenue and EPS point to demand weakness or price pressure in end markets. Over the next several months, this can constrain margin recovery and cash flow, forcing management to defend volumes or accept lower pricing in competitive textile and industrial segments.

Low and pressured profitability margins

Thin EBITDA and net margins leave limited buffer against raw material and energy cost volatility. Fluctuating operating margins indicate structural operational or mix issues; sustained low profitability reduces reinvestment capacity and makes returns sensitive to commodity swings.

High exposure to volatile input costs and capex pressure

Earnings depend on the spread versus caprolactam and energy, exposing margins to commodity swings. With free cash flow to net income just under 1, the company may still face capex or working-capital demands that strain cash cushions when input costs spike, limiting strategic optionality.

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 Limited generates its revenue through the production and sale of synthetic yarn products, specifically nylon filament yarn (NFY) and polyester filament yarn (PFY). The company sells these products to textile manufacturers and suppliers who use them to create a wide range of textile goods. Revenue streams are bolstered by the company's strategic partnerships with textile companies and its competitive edge in product quality and innovation. Additionally, Century Enka benefits from economies of scale and operational efficiencies, which help in maintaining its profitability in the competitive textile industry.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.75B	20.02B	17.44B	20.68B	20.98B	12.15B
Gross Profit	4.91B	4.56B	3.60B	1.62B	4.56B	2.86B
EBITDA	1.22B	1.15B	1.15B	1.61B	2.85B	1.34B
Net Income	575.30M	664.70M	427.50M	903.20M	1.84B	709.20M
Balance Sheet
Total Assets	0.00	17.82B	16.84B	16.23B	15.23B	13.40B
Cash, Cash Equivalents and Short-Term Investments	3.39B	3.42B	2.76B	3.20B	2.65B	3.46B
Total Debt	0.00	368.20M	522.50M	678.40M	149.20M	131.50M
Total Liabilities	-14.18B	3.64B	3.20B	3.01B	2.72B	2.51B
Stockholders Equity	14.18B	14.18B	13.64B	13.22B	12.51B	10.89B
Cash Flow
Free Cash Flow	0.00	664.40M	-269.50M	-196.30M	-302.10M	960.90M
Operating Cash Flow	0.00	1.18B	880.60M	2.19B	555.60M	1.09B
Investing Cash Flow	0.00	-758.40M	-469.80M	-2.51B	-412.80M	-760.00M
Financing Cash Flow	0.00	-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: Negative
• 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 437.72, above the 50-day MA of 441.97, and below the 200-day MA of 473.61, indicating a bearish trend. The MACD of -1.85 indicates Negative momentum. The RSI at 45.99 is Neutral, neither overbought nor oversold. The STOCH value of 41.70 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	₹24.42B	31.17	―	0.39%	19.90%	27.94%
CENTENKA	69 Neutral	₹9.48B	16.21	―	2.28%	-11.89%	-17.27%
SARLAPOLY	67 Neutral	₹7.47B	11.02	―	3.38%	-3.48%	21.37%
RSWM	64 Neutral	₹6.62B	82.11	―	―	5.54%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AYMSYNTEX	52 Neutral	₹9.39B	635.80	―	―	-2.89%	-94.82%
INDORAMA	50 Neutral	₹11.29B	7.95	―	―	30.79%	―

Century Enka Limited Corporate Events

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.