Century Textiles Surges 8% on Land Deal with ₹1,400 Crore Revenue Potential

Century Textiles and Industries' shares surged by 8% in early trading on Tuesday following an announcement from the Aditya Birla Group firm. The company revealed that its subsidiary, Birla Estates, is planning a strategic land acquisition in Sector 71, Gurugram, to expand its presence in the NCR region.

By 09:48 am IST, Century Textiles share price were trading at ₹2,192.95 on the NSE. This positive news led to a significant increase in trading volume, with six lakh shares being exchanged, which is double the one-month daily average of three lakh shares.

On the BSE, Century Textiles' shares climbed to ₹2270.40 from the previous close of ₹2100.70. The market capitalization of the company increased to ₹24,539 crore. A total of 0.22 lakh shares were traded, resulting in a turnover of ₹4.94 crore. Over the past year, the stock has risen by 129% and has gained 776% over two years, yielding substantial returns for investors.

The shares of Century Textiles have a one-year beta of 1, indicating average volatility. Technically, the relative strength index (RSI) stands at 41.1, suggesting that the stock is neither overbought nor oversold. The stock is trading below its 10-day, 20-day, and 30-day moving averages but is above its 5-day, 50-day, 100-day, 150-day, and 200-day moving averages.

The newly acquired 5-acre land parcel offers a development potential of approximately 10 lakh square feet and is projected to generate over ₹1400 crore in revenue from luxury residential homes. Birla Estates, the real estate division of the Aditya Birla Group, highlights this site’s strategic location on the Southern Peripheral Road (SPR) in Sector 71, which offers excellent connectivity to Delhi and other parts of Gurugram via the Dwarka Expressway, Sohna Road, and Golf Course Extension Road.

Birla Estates is rapidly growing in the NCR market, with this new acquisition complementing its existing projects on the Golf Course Extension Road, in Sector 31 of Gurugram, and on Mathura Road in Delhi.

In June, Birla Estates entered into a joint venture with Barmalt India to develop a 13.27-acre land parcel in Sector 31, Gurugram, for luxury residential group housing.

Century Textiles announced to the stock exchanges that the new luxury high-rise residential towers in Sector 71 will feature elegantly designed clubhouse amenities and landscaped areas. The prime location on SPR Road offers excellent connectivity to Delhi and other parts of Gurugram and is close to top educational institutions, hospitals, as well as F&B, retail, and commercial centers.

“Redefining the Gurugram skyline, the luxury high-rise residential towers will be complemented by elegantly designed clubhouse amenities and landscape. Situated on Southern Peripheral Road (SPR) Road in Sector 71, this prime location offers exceptional connectivity to Delhi and other parts of Gurugram via the Dwarka Expressway, Sohna Road, and Golf Course Extension Road along with proximity to top educational institutions, hospitals, as well as F&B, retail, and commercial centers,” said Century Textiles in a commuinaction to bourses. 

K. T. Jithendran, MD & CEO of Birla Estates, emphasized the importance of the Gurugram market, stating, "The real estate potential in this micro-market is immense and reinforces our strong focus in the Delhi-NCR region. With this acquisition, we aim to cater to homebuyers seeking exclusivity and distinctive living experiences. At Birla Estates, our commitment transcends luxury; our ethos is to embrace a vision of residences that embody a legacy of dedication and excellence." 

Century Textiles entered the real estate sector through its wholly-owned subsidiary, Birla Estates, in 2016. Birla Estates has a diversified portfolio that includes residential, commercial, and mixed-use properties. Century Textiles & Industries is primarily involved in the manufacturing of textiles, cement, pulp and paper, and real estate.