Shares of Century Textiles and Industries Ltd., an Aditya Birla Group entity, gained over 7% on Tuesday after it acquired a 10-acre leasehold land parcel in Mumbai for Rs 1,100 crore from Nusli Wadia of the Wadia Group.
The land is located in Worli, which is at the forefront of the current bullish trend in luxury real estate, the company said an exchange filing. Birla Estates Pvt., which is a wholly-owned subsidiary of Century Textiles, will be developing the land parcel.
"This 10-acre land parcel adds an approximate booking value potential of Rs 14,000 crore to the company," it said.
The acquisition also paves the way for a gross 30-acre contiguous landholding in this prime area, with an overall booking value potential of approximately Rs 28,000 crore, it said. This includes Birla Niyaara, the flagship project of Birla Estates, launched a few years ago, which is one of the fastest-selling uber luxury projects in the Mumbai Metropolitan Region with cumulative sales of over Rs 5,700 crore, the company further noted.
Stock Soars
Shares of the company rose as much as 7.4% to hit intraday high of Rs 2,530 apiece. The stock closed 5.61% higher at Rs 2,485 apiece, compared with 0.42% gain in the benchmark Nifty 50.
The stock has risen 103.2% so far this year and 129.5% in the last 12 months. The total traded volume so far in the day stood at 3.32 times its 30-day average. The relative strength index was at 56.70.
All the three analysts tracked by Bloomberg have a 'buy' call on the stock, according to Bloomberg. The average of 12-month analysts price targets implies a potential upside of 19.4%.
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