The scrip of Century Textiles has been steadily going up since May 31, gaining 79 per cent over the last eleven trading sessions from Rs 38.40 at the end of May to Rs 70.25 in intra-day deals on Monday. The volumes in the scrip have also been substantial.
The scrip actually ended lower at Rs 66.25 compared with last Friday's close of Rs 66.25. At the end of the day's trading 27.56 lakh shares were traded on the BSE.
Apart from the increase in the prices of the shares daily volumes in the scrip which used to be between 25,000 and 20 lakh shares has risen to between 65,000 and 49 lakh shares.
According to analysts, the increase in valuation can be attributed to the restructuring within the company - it is selling off two ships belonging to its shipping division. It has also undertaken a financial restructuring exercise including repayment of high cost debts to bring down its costs. In fact it was able to end last fiscal profitably due to this restructuring.
Century Textiles managed to end fiscal 2001-02 in the black largely through financial restructuring. For the year ended March 31, 2002, the company posted a net profit of Rs 11.72 crore (Rs 53.95 crore) on sales of Rs 2,197.01 crore (Rs 2,177.30 crore).
The four key businesses of the company include textiles, viscose staple fibre, cement and writing & printing paper.
