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Check Before You Invest : Centum Electronics Ltd

BSE: 517544 NSE: CENTUM ISIN: INE320B01020
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electronics - Components

Snapshot

Q.1 Which industry/sub-sector does Centum Electronics Ltd belong to?
Centum Electronics Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electronics - Components segment.
Q.2 Is Centum Electronics Ltd a good quality company?
Centum Electronics Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Centum Electronics Ltd undervalued or overvalued?
Centum Electronics Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Centum Electronics Ltd a good buy now?
Centum Electronics Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Centum Electronics Ltd?
Centum Electronics Ltd revenue growth is 18.5% for FY-2025 , which is above its 5 year CAGR of 9.2% , indicating faster growth.
Q.2 Gross Profit margin of Centum Electronics Ltd?
Centum Electronics Ltd Gross profit margin which is the profit after deduction of direct costs, is 12% for FY-2025 , which is above its 5 year median of 10.6% , indicating increasing margins.
Q.3 Operating Profit Margin of Centum Electronics Ltd?
Centum Electronics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.71% for FY-2025 , which is above its 5 year median of 12.8% indicating increasing margins.
Q.4 Net Profit Margin of Centum Electronics Ltd?
Centum Electronics Ltd Net Profit Margin is 7.04% for FY-2025 , is above with its 5 year median of 5.65%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 12 10.6
Operating Profit Margin 13.71 12.8
Net Profit Margin 7.04 5.65
Q.5 Return on Asset of Centum Electronics Ltd?
Centum Electronics Ltd Return on Asset is 5.52(x), which is above its 5 year historical median of 4.11(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Centum Electronics Ltd?
Centum Electronics Ltd Return on equity is 12.17% for FY-2025 , which is above its historical median of 9.77%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Centum Electronics Ltd?
Centum Electronics Ltd Return on capital employed is 16.6% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Centum Electronics Ltd?
Centum Electronics Ltd Cash conversion cycle is 189 , above its historical median of 189 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.79 0.79
ROE 12.17 9.77
ROCE 16.6 12.4
Cash Conversion Cycle 189 189
Q.9 Debt to Equity ratio of Centum Electronics Ltd?
Centum Electronics Ltd Debt-to-Equity ratio is 0.17 , which is lower with the industry average of 0.25 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Centum Electronics Ltd?
Centum Electronics Ltd Debt to cash flow from operations is -4.82 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Centum Electronics Ltd?
Promoters hold 46.88% of the Centum Electronics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Centum Electronics Ltd vs industry peers?
Centum Electronics Ltd revenue CAGR is 9.22% , compared to the industry median CAGR of 3.89% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 749.8 41.9
Gross Profit 90 5.3
Operating Profit 102 5.2
Net Profit 53 2
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.79 0.79
ROE 12.17 7.33
ROCE 16.6 9.29
Cash Conversion Cycle 188.52 121

Valuation & price assessment

Q.1 Stock return of Centum Electronics Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 16.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 16.8% 48.1% 57% 71.9%
Q.3 Valuation ratios of Centum Electronics Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 12.20 44.31
Price to Book 10.42 0.00 4.02
Price to Sales 4.66 0.00 4.15
EV to EBITDA 30.47 6.78 23.98

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