Check Before You Invest : Centrum Capital Ltd

BSE: 501150 NSE: CENTRUM ISIN: INE660C01027

| Sector: BFSI | Industry: Finance - Others

Snapshot

Q.1 Which industry/sub-sector does Centrum Capital Ltd belong to?

Centrum Capital Ltd belongs to the BFSI sector, operating specifically within the Finance - Others segment.

Q.2 Is Centrum Capital Ltd a good quality company?

Centrum Capital Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Centrum Capital Ltd undervalued or overvalued?

Centrum Capital Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Centrum Capital Ltd a good buy now?

Centrum Capital Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Centrum Capital Ltd?

Centrum Capital Ltd revenue growth is 58.3% for FY-2025, which is above its 5-year CAGR of 49.19%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Centrum Capital Ltd?

Centrum Capital Ltd Return on capital employed is 9.9% for FY-2025, which is above its 5-year historical median of 8.5%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Centrum Capital Ltd?

Centrum Capital Ltd Return on Asset is -0.8%, which is above its 5-year historical median of -1.3%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Centrum Capital Ltd?

Centrum Capital Ltd Return on equity is -47.1% for FY-2025, which is below its 5-year historical median of -30.6%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Centrum Capital Ltd?

Centrum Capital Ltd Cash conversion cycle is -36 days, above its 5-year historical median of -87 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.18	0.16
ROE	-47.1	-30.6
ROCE	9.9	8.5
Cash Conversion Cycle	-36 days	-87 days

Q.6 Gross Profit margin of Centrum Capital Ltd?

Centrum Capital Ltd Gross profit margin which is the profit after deduction of direct costs, is -2.2% for FY-2025, which is above its 5-year median of -2.6%, indicating increasing margins.

Q.7 Operating Profit Margin of Centrum Capital Ltd?

Centrum Capital Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 37.77% for FY-2025, which is above its 5-year median of 33.63% indicating increasing margins.

Q.8 Net Profit Margin of Centrum Capital Ltd?

Centrum Capital Ltd Net Profit Margin is -4.25% for FY-2025, is above with its 5-year median of -8.36%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-2.2	-2.6
Operating Profit Margin	37.77	33.63
Net Profit Margin	-4.25	-8.36

Q.9 Debt to Equity ratio of Centrum Capital Ltd?

Centrum Capital Ltd Debt-to-Equity ratio is 69.27, which is above with the industry average of 0.11, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Centrum Capital Ltd?

Centrum Capital Ltd Debt to cash flow from operations is 6.41, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Centrum Capital Ltd?

Promoters hold 39.44% of the Centrum Capital Ltd, with 29.96% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Centrum Capital Ltd vs industry peers?

Centrum Capital Ltd revenue CAGR is 49.19%, compared to the industry median CAGR of 28.9%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	58.3	28.9
Gross Profit Growth	0	41.8
Operating Profit Growth	0	43.1
Net Profit Growth	0	48.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.18	0.59
ROE	-47.1	6.08
ROCE	9.9	9.75
Cash Conversion Cycle (days)	-36.45	9

Valuation & price assessment

Q.1 Stock return of Centrum Capital Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 3.2% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	3.2%	-4.6%	6.9%	0.4%

Q.3 Valuation ratios of Centrum Capital Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	-	40.60
Price to Book	2.96	3.07	4.06
Price to Sales	0.37	0.66	9.29
EV to EBITDA	1.87	4.83	25.96

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