Century Textiles hits record high after buying Rs 1,100-cr land in Mumbai

Shares of Century Textiles & Industries, an Indian textile and paper manufacturing company that is a part of the Aditya Birla Group, clocked an all-time high of Rs 2,648.85 per share on the BSE, on Wednesday.

The stock extended its rally for the second consecutive day and climbed 6.7 per cent intraday after it acquired the ownership rights in its leasehold land parcel in Worli, Mumbai.

"Century Textiles and Industries Limited (CTIL) has acquired the ownership rights of approx. 10-acre leasehold land parcel in Worli, Mumbai from Mr. Nusli Wadia," the filing read.

The deal boosts the company’s landholding and booking value potential. As per the company's exchange filing, the amount paid for the land parcel is Rs 1,100 crore.

At around 9:37 AM, shares of Century Textiles were up 4.15 per cent at Rs 2,585.45, compared to the BSE Sensex's decline of 92.48 points at 81,828.81.

This acquisition, at a prime location in Worli, Mumbai, will be developed through its subsidiary, Birla Estates Pvt Ltd, the company said. Further, this 10-acre land parcel adds an approximate booking value potential of Rs 14,000 crore to the company, it added.

The acquisition also paves the way for a gross 30-acre contiguous landholding for the company in the same area, with an overall booking value potential of approximately Rs 28,000 crore. This includes Birla Niyaara, the flagship project of Birla Estates, launched a few years ago with a cumulative sales value of over Rs 5,700 crore.

Meanwhile, brokerage firm Antique Broking, in its report dated September 3, 2024, recommended buying shares of Century Textiles & Industries for a target price of Rs 3,470 per share.

The brokerage has reiterated its 'Buy' rating on the company, as it expects Century Textiles to add a few more projects in the current year and sell inventory in FY25 and FY26.

"The company has a robust FY25 launch pipeline of Rs 12,000 crore across MMR (Muma Metropolitan Region), NCR (National Capital Region), Pune and Bengaluru, and existing unsold inventory of Rs 3,400 crore," the report read.

In the past one year, shares of Century Textiles and Industries have gained 132.8 per cent, compared to the BSE Sensex's rise of 22 per cent during the same period.