Century Enka Ltd - 500280

Name of Company	Century Enka Ltd.
BSE Code	500280
NSE Code	CENTENKA
ICICI Code
Established	1965
My Take	Like
Headquarters	Pune
Promoters	BK Birla group (century textiles, Kesoram, Century Enka, Jayshree tea)
Story	Plants in Pune, Mahad (Maharashtra) and Bharuch (Gujarat).
Sector	Textiles
Sub-sector	Nylon, POY, etc – raw materials for tyres, conveyor belts, V-belts, etc.
Website	http://www.centuryenka.com/ (was not working)
Positives	Reliable promoters, regular dividends of 2.5% or more at current price. LIC holds 7%. Debt has reduced from previous levels and seems to help NPMs. Can expect NPMs of around 5% or more.
Negatives	Only 31% promoter holding (none pledged). Biggest chunk is held by small investors. Almost flat topline (1145 Cr in Fy06 to 1327 Cr in FY10). FY10 NP is at 100 Cr compared to last 4 years where it was between 13 and 17 Cr. NPMs are normally around 1%. FY10 alone was at 8%.
Peers
News
Price @ blogged	179.8 (09-Mar-11)
Cost of company	393.76 Cr market cap for a 100.16 Cr NP in FY ending Mar ' 10 makes it 3.93 times. This is for a company with 207.61 Cr debt and 538.07 Cr reserves (it is like buying a wallet with Rs. 80 cash for Rs.100). Increased NPMs in FY10 seems to be continuing.