Century Extrusions Limited

Basic Materials — Aluminum · NSE

₹19.17+₹0.22 (+1.16%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Century Extrusions Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Century Extrusions Limited manufactures and sells aluminum extrusion products in India. It operates through two segments, Manufacturing of Aluminum Extruded Products; and Manufacturing of Transmission and Distribution Line.

IndustryAluminum

SectorBasic Materials

Employees327

Annual revenue₹479 Cr

How does it make money?

Turns over ₹479 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 327 employees supports ₹1.46 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.46 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED, JSW STEEL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 28.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 13.2% against a peer median of 18.7% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE18.7%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +29% while net margin moved +43% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+29%

Margin effect+43%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

• Debt/Equity of 0.82x is manageable
• Current ratio of 1.36 covers short-term liabilities, without much slack
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
• Interest cover of 2.5x is adequate

Quality vs. Valuation

Company Quality

63/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

79/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

13.6x

3Y Median

24.4x

40 monthly readings · mean 23.8x · range 14.6x–44.5x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 44% below its 3y median of 24.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 12.2x.

vs. its own history

Cheap

24.4x median over 40 months · -44%

vs. sector peers

Fair

12.2x median of 4 peers · +12%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.0x

PEG

0.60

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 9.2% to 13.2%.
Return on capital is rising
ROCE has improved from 21.8% to 28.0%.
High return on capital employed
ROCE of 28.0% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 108% against revenue up 29% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 43% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹14 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 28.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 44% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 5%✓ 6.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹14 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.5x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 7% a year✓ 8.8% CAGR
Latest reported year was 32.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹153 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.6x

Cheap

Cheap against the generic band

P/B Ratio

1.85x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.41

Profitable

Profitable on a per-share basis

ROE

13.2%

Moderate

Moderate capital efficiency

ROCE

28.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.82x

Moderate

Moderate leverage

Revenue Growth (YoY)

32.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

56.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹14 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

6.2%

Average

Average margins

Net Margin

2.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.36

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.12

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

18.4 / 20.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

52.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹372 Cr	₹375 Cr	₹431 Cr	₹479 Cr	+8.8%
EBITDA	₹20 Cr	₹21 Cr	₹25 Cr	₹32 Cr	+15.8%
EBITDA Margin	5.5%	5.6%	5.9%	6.6%	—
PAT (Net Profit)	₹6 Cr	₹7 Cr	₹10 Cr	₹11 Cr	+22.5%
EPS	₹0.68	₹0.85	₹1.13	₹1.25	+22.2%
ROE	9.2%	10.2%	12.0%	13.2%	—
ROCE	21.8%	23.2%	24.9%	28.0%	—
Total Debt	₹48 Cr	₹48 Cr	₹52 Cr	₹68 Cr	+12.6%
Free Cash Flow	₹13 Cr	₹6 Cr	₹7 Cr	-₹14 Cr	—

🟢 Revenue has grown at 8.8% a year over 3 years.

🟢 EBITDA has grown at 15.8% a year over 3 years.

🟢 EBITDA Margin has risen from 5.5% to 6.6% over 3 years (+1.1 pts).

🟢 PAT (Net Profit) has grown at 22.5% a year over 3 years.

🟢 EPS has grown at 22.2% a year over 3 years.

🟢 ROE has risen from 9.2% to 13.2% over 3 years (+4.1 pts).

🟢 ROCE has risen from 21.8% to 28.0% over 3 years (+6.2 pts).

🔴 Total Debt has grown at 12.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹13 Cr to -₹14 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹187 Cr

Total Liabilities

₹105 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹18 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

52.6%

Corporate Actions

Ex-Dividend Date

22 Jul 2010

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%

Recent News

1 positive1 mixed4 general

Century Extrusions Ltd. - RE Share Price Live Today

CNBC TV18, 08 Oct

Century Extrusions rights issue opens on September 23, 2026

scanx.trade, 02 Sept

Declining Stock and Decent Financials: Is The Market Wrong About Century Extrusions Limited (NSE:CENTEXT)?

Simply Wall Street, 20 Jan

Century Extrusions Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Century Extrusions extends rights issue closing date to Oct 21

scanx.trade, 07 Oct

Century Extrusions posts 10.97% sales rise in FY26, sets Aug 14 AGM date

scanx.trade, 14 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑