Indiabulls Securities Research has upgrade Century Textiles and Industries rating to buy with a price target of Rs 553 in its report dated November 6, 2009.
"Century Textiles delivered an impressive performance in Q2’10 with revenue appreciating 18.6% yoy to Rs 10.1 billion. Furthermore, the EBITDA increased by a whopping 129.3% yoy to Rs 2.3 billion. The Cement segment has propelled growth in both revenues and profits of the Company. Although the pulp and paper segment and the textiles segment dragged the Company’s profitability in this quarter, we expect an improvement in both these segments. We expect the demand for cement improve on the back of recovery in real estate sector. Furthermore, Century is geared up for the growth opportunities in the textiles through opening a new state-of-the-art mill. Moreover, we expect a steady progress in its real estate projects, which will generate strong cash flows in next 2-3 years. Our DCF valuation, assuming a 15.1% of WACC and a 5.0% of terminal growth rate, gives a target price (TP) of Rs 553, an upside of 25.5% over the CMP of Rs 440.3. Hence, we upgrade our rating on the stock to Buy, "says Indiabulls Securities Research.
I think this stock has potential to test 700. Has not rallied as is an old time favourite. Results look good. finally some direction and good chart check. So people should accumulate this.
| NIFTY 
