Industrial Manufacturing
Growth: Good revenue growth. With 45% growth over past three years, the company is going strong.
Past Returns: Outperforming stock! In past three years, the stock has provided 47.8% return compared to 12.2% by NIFTY 50.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Insider Trading: Significant insider selling noticed recently.
Momentum: Stock is suffering a negative price momentum. Stock is down -14.5% in last 30 days.
Dilution: Company has a tendency to dilute it's stock investors.
Technicals: SharesGuru indicator is Bearish.
Valuation | |
|---|---|
| Market Cap | 3.2 kCr |
| Price/Earnings (Trailing) | 197.25 |
| Price/Sales (Trailing) | 2.6 |
| EV/EBITDA | 30.46 |
| Price/Free Cashflow | -76.98 |
| MarketCap/EBT | 97.66 |
| Enterprise Value | 3.29 kCr |
Fundamentals | |
|---|---|
| Revenue (TTM) | 1.23 kCr |
| Rev. Growth (Yr) | 15.3% |
| Earnings (TTM) | 10.94 Cr |
| Earnings Growth (Yr) | 1.46% |
Profitability | |
|---|---|
| Operating Margin | 4% |
| EBT Margin | 3% |
| Return on Equity | 2.8% |
| Return on Assets | 0.78% |
| Free Cashflow Yield | -1.3% |
Growth & Returns | |
|---|---|
| Price Change 1W | -5.4% |
| Price Change 1M | -14.5% |
| Price Change 6M | -4.1% |
| Price Change 1Y | -5.7% |
| 3Y Cumulative Return | 47.8% |
| 5Y Cumulative Return | 40.8% |
| 7Y Cumulative Return | 30.1% |
| 10Y Cumulative Return | 13.4% |
Cash Flow & Liquidity | |
|---|---|
| Cash Flow from Investing (TTM) | -58.82 Cr |
| Cash Flow from Operations (TTM) | -29.35 Cr |
| Cash Flow from Financing (TTM) | 107.15 Cr |
| Cash & Equivalents | 75.11 Cr |
| Free Cash Flow (TTM) | -47.93 Cr |
| Free Cash Flow/Share (TTM) | -32.59 |
Balance Sheet | |
|---|---|
| Total Assets | 1.39 kCr |
| Total Liabilities | 1 kCr |
| Shareholder Equity | 390.69 Cr |
| Current Assets | 1.07 kCr |
| Current Liabilities | 921.69 Cr |
| Net PPE | 128.51 Cr |
| Inventory | 490.74 Cr |
| Goodwill | 41.26 Cr |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.12 |
| Debt/Equity | 0.42 |
| Interest Coverage | -0.01 |
| Interest/Cashflow Ops | 0.09 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 6 |
| Dividend Yield | 0.28% |
| Shares Dilution (1Y) | 14% |
| Shares Dilution (3Y) | 14.1% |
Summary of Centum Electronics's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated:
In the Q1 FY '26 earnings call, Centum Electronics Limited management provided an optimistic outlook despite facing challenges in certain segments. Key highlights include:
Revenue Growth: Consolidated revenue from operations increased by 11.4% year-on-year, reaching Rs. 273 crores. Standalone revenue surged by 35% to Rs. 180 crores.
EBITDA Margin Improvement: The company's EBITDA was Rs. 23 crores with an 8.38% margin at the consolidated level, while standalone EBITDA reached Rs. 27 crores, boasting a 14.92% margin.
Net Profit: Consolidated net profit stood at Rs. 4.5 crores, a 47% increase year-on-year, while standalone net profit surged by over 250% to Rs. 16.5 crores.
Order Book Growth: As of June 30, 2025, the order book grew to Rs. 1,769 crores, buoyed by new EMS customers and development orders from DRDO for projects like the Virupaksha Radar.
Strategic Positioning: Despite some degrowth in international subsidiaries, especially in the ER&D business due to macro uncertainties in Europe, management remains optimistic about converting identified opportunities in the second half of FY '26.
Targeted Revenue Growth: The management aims for consolidated revenue growth of 18% to 20% annually, with expectations of maintaining higher rates for the standalone business.
Capex Plans: The company plans a Rs. 40 crores capital expenditure in FY '26 to enhance capabilities and expects this investment to contribute significantly to future revenue.
Focus on Defense Programs: A robust pipeline is anticipated in defense and aerospace sectors, with significant orders expected to arise from completed developments in the next few years.
Canadian Subsidiary Actions: Management is actively evaluating strategic actions to address losses in the Canadian subsidiary, which has been a financial drag.
Management's forward-looking statements reflect confidence in maintaining growth through key partnerships, diversified service offerings, and ongoing development projects within the domestic defense sector.
Last updated:
1. Question: "Can you elaborate on the pathway to recovery for the ER&D business, and what is the expected timeline for this recovery?"
Answer: We have seen demand softness in the ER&D sector for about 18 months, driven mainly by the automotive and aerospace industries. However, we are noticing an improvement in our opportunity pipeline, particularly from defense customers. We anticipate some conversions from this pipeline in the coming months and expect better performance in the second half of this financial year, contingent on sustained demand and conversion.
2. Question: "Could you share why the domestic BTS order book has remained flat Q-o-Q and any expected conversions in the near term?"
Answer: While the order book is flat, we should note that we've achieved significant revenue growth and deliveries recently. The order booking is healthy, and we anticipate continued growth in the domestic BTS business as we explore numerous opportunities, which we expect to book over the rest of this year.
3. Question: "What is the typical execution timeline of the current BTS order book?"
Answer: Typically, the execution timeline for BTS orders ranges between 2 to 2.5 years. This ensures careful planning and timely delivery to meet our clients' specifications and needs.
4. Question: "Can you provide an update on the Canadian subsidiary and if any deal has been finalized?"
Answer: We have made good progress regarding the Canadian subsidiary, with a decision expected within the coming months. We aim to finalize matters by the end of this quarter, though I cannot disclose specific details at this time.
5. Question: "Can you give an approximate figure for the cash inflow once you sell off the Canadian business?"
Answer: I'm unable to provide a precise figure, as this business has been loss-making. Consequently, while we are pursuing a sale, expectations of significant cash inflow may not be high.
6. Question: "What is the order book split?"
Answer: As highlighted in our earnings presentation, the order book consists of approximately Rs. 710 crores in EMS, Rs. 886 crores in BTS, and Rs. 171 crores in ER&D services.
7. Question: "How much loss does the Canadian subsidiary incur as of FY "˜25?"
Answer: Last year, the Canadian subsidiary reported a loss of about €2.4 million. In Q1-FY26, the EBT loss was around €600,000 to €700,000.
8. Question: "What is the current bid pipeline and expected order inflow growth for FY "˜26?"
Answer: While I cannot disclose specific figures for the bid pipeline, we do have a robust list of opportunities. Our medium-term growth target is between 18% to 20% at the consolidated level, which we plan to achieve through sustained efforts and strategic engagements.
9. Question: "What is the CAPEX for FY "˜26, and what kind of asset terms do you see in the business?"
Answer: For FY "˜26, we plan a CAPEX of Rs. 40 crores, which will take our gross block to about Rs. 390-400 crores. We currently operate at around 6x to 7x utilization, with an expectation to move to 8x to 9x in the next couple of years due to the added capacity.
10. Question: "Can you elaborate about the development order received from DRDO and the overall opportunity size?"
Answer: The development order from DRDO is around Rs. 10 crores, which sets the stage for major programs. In the next three to four years, these efforts could yield significant revenue opportunities, potentially exceeding Rs. 1,000 crores linked to the Sukhoi-30 program and related platforms.
Understand Centum Electronics ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| APPARAO VENKATA MALLAVARAPU | 35.57% |
| HDFC MUTUAL FUND - HDFC MULTI CAP FUND | 9.69% |
| 3P INDIA EQUITY FUND 1 | 5.75% |
| NIKHIL MALLAVARAPU | 4.44% |
| TANYA MALLAVARAPU | 4.38% |
| SUBHKAM VENTURES I PRIVATE LIMITED | 3.51% |
| SWARNALATHA MALLAVARAPU | 2.51% |
| 3P INDIA EQUITY FUND 1M | 1.77% |
| MINAL BHARAT PATEL | 1.68% |
| ZEN SECURITIES LIMITED | 1.29% |
| M S SWARNAKUMARI | 0.09% |
Distribution across major stakeholders
Distribution across major institutional holders
Detailed comparison of Centum Electronics against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| BEL | Bharat Electronics | 2.87 LCr | 25.85 kCr | -7.20% | +31.60% | 50.43 | 11.11 | - | - |
| DIXON | Dixon Tech (India) | 80.29 kCr | 48.95 kCr | -14.60% | -27.90% | 46.75 | 1.64 | - | - |
| HONAUT | Honeywell Automation India | 29.87 kCr | 4.72 kCr | -2.90% | -17.40% | 57.88 | 6.33 | - | - |
| AVALON | Avalon Tech | 5.84 kCr | 1.35 kCr | -10.70% | -12.10% | 66.36 | 4.32 | - | - |
| MICEL | MIC Electronics | 1.06 kCr | 107.56 Cr | -6.80% | -48.90% | 112.64 | 9.84 | - | - |
Comprehensive comparison against sector averages
CENTUM metrics compared to Industrial
| Category | CENTUM | Industrial |
|---|---|---|
| PE | 196.47 | 45.28 |
| PS | 2.59 | 3.53 |
| Growth | 11.3 % | 9.8 % |
Centum Electronics Limited designs, manufactures, exports, and sells electronic products in India, the United Kingdom, Europe, North America, and internationally. The company offers embedded computers and power converters, test tools, LRU and data recorders, and satellite bus systems for the aerospace and space industries. It provides onboard computer systems, receiver and seeker electronics, transmit receive modules, high power RF amplifiers, vibration hardened oscillators, power converters and systems, digital receivers, digital sequencer and payload controllers, power conditioning and processing units, and radar finger printing systems for the defense industry. In addition, the company offers base station equipment and RF filters for the communication industry; and industrial equipment diagnosis and circuit breaker control systems, solar energy power cabinets, and HIL test simulator turbo alternator regulation products for the industrial and energy sectors. Further, it provides medical devices and equipment that include digital radiography systems, automated pumps for drug injection, ultrasound equipment, patient monitoring devices, customized room controls for operation theaters, and others; and railway automation system gateways, railway embedded controllers and computer boards, and railway energy storage systems and modules, as well as specialist engineering and manufacturing services for the transportation sector. Additionally, the company offers assisted car navigation-passive rollover avoidance systems, automatic telematics modules, automotive flexray demonstrators, automotive elec boards for solar roofs, and power steering encoder acquisition systems for the automotive industry. The company was incorporated in 1993 and is headquartered in Bengaluru, India.
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CENTUM vs Industrial (2021 - 2025)