Fire at small-cap company Century Enka's unit sends stock 9% lower. Do you own this Aditya Birla group company?

Century Enka share price slumped by more than 9% during Thursday's trading session after the Aditya Birla Group company announced to the exchanges that there was a fire at its Nylon Filament Yarn (NFY) spinning facility in Bharuch, Gujarat, resulting in a temporary disruption of production at that plant.

No injuries or fatalities among individuals have been reported, and sufficient measures are being taken to restore the functioning of the plant.

“The fire was controlled at the time of communication to the exchange. However, production operation of the said plant is temporarily disrupted. There are no human injuries or casualties reported. Adequate steps are being undertaken to restore the operation of the plant. The company is in the process of ascertaining the cause of the fire and the actual loss caused by it,” said the company.

Additionally, the company has indicated that sufficient insurance coverage exists for the mentioned plant, and notification to the insurance provider is underway. This incident is not expected to significantly affect the company’s profitability.

Century Enka share price today

Century Enka share price today opened at ₹590.20 apiece on the BSE, the stock touched an intraday low of ₹538.25 per share, and an intraday high of 595.20 apiece.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Century Enka share price had a decent upmove last week, moving from the levels of 440 to 620, however today the prices are under tremendous pressure down more than 9% and losing around 50% of recent gains.

For now considering today's strong sell off fresh long could be avoided, however, prices may see strong support around 510 the 61.8% retracement level and 470 as support as the origin point of last week's rally, any reversal signs around this zone can be considered for buying.

Company details

As a part of the Aditya Birla Group, Century Enka is recognized for its high-quality standards, innovative products, ethical business practices, and commitment to customer satisfaction.

The establishment of Century Enka Limited in 1965 stemmed from the strong interest of Mr. B.K. Birla in partnership with AKZO Nobel from the Netherlands. Throughout the years, it has become a well-respected manufacturer of premium Nylon Tyre Cord Fabric (NTCF), utilised as a reinforcement material in bias tyres, and NFY, which is primarily used in the apparel industry.

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