Check Before You Invest : Centum Electronics Ltd

Q: 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: Is Centum Electronics Ltd a good quality company?

Centum Electronics Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Centum Electronics Ltd undervalued or overvalued?

Centum Electronics Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: -, Historic Median: 58.57. Price to Book, Current: 11.02, Historic Median: 5.81. Price to Sales, Current: 4.9, Historic Median: 3.23. EV to EBITDA, Current: 34.82, Historic Median: 24.36

Q: 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

Q: 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 9.22%, indicating faster growth.

Q: 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: 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: Net Profit Margin of Centum Electronics Ltd?

Centum Electronics Ltd Net Profit Margin is 7.04% for FY-2025, is above its 5-year median of 5.65%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 12, Historic Median: 10.6. Operating Profit Margin (%), Current: 13.71, Historic Median: 12.8. Net Profit Margin (%), Current: 7.04, Historic Median: 5.65

Q: Return on Asset of Centum Electronics Ltd?

Centum Electronics Ltd Return on Asset is 5.52%, which is above its 5-year historical median of 4.11%, indicating improved asset utilization efficiency.

Q: 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 5-year historical median of 12.4%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Centum Electronics Ltd

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 average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Centum Electronics Ltd undervalued or overvalued?

Centum Electronics Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	-	58.57
Price to Book	11.02	5.81
Price to Sales	4.9	3.23
EV to EBITDA	34.82	24.36

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 9.22%, 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 its 5-year median of 5.65%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	12	10.6
Operating Profit Margin (%)	13.71	12.8
Net Profit Margin (%)	7.04	5.65

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Centum Electronics Ltd?

Centum Electronics Ltd Return on Asset is 5.52%, which is above its 5-year historical median of 4.11%, indicating improved asset utilization efficiency.

Q.6 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 5-year historical median of 12.4%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Centum Electronics Ltd?

Centum Electronics Ltd Return on equity is 12.17% for FY-2025, which is above its 5-year historical median of 9.77%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Centum Electronics Ltd?

Centum Electronics Ltd Cash conversion cycle is 189 days, in line with its 5-year historical median of 189 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.79	0.79
ROE (%)	12.17	9.77
ROCE (%)	16.6	12.4
Cash Conversion Cycle	189 days	189 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Centum Electronics Ltd?

Centum Electronics Ltd Debt-to-Equity ratio is 0.17, which is lower 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.

Ownership & governance

D: Promoter shareholding and pledge status of Centum Electronics Ltd?

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)

E: How does Centum Electronics Ltd performance compare with that of its Peers?

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 3.03%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	18.5	3
Gross Profit Growth (%)	34.3	16
Operating Profit Growth (%)	29.1	19.2
Net Profit Growth (%)	47.2	16.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.79	0.79
ROE (%)	12.17	7.33
ROCE (%)	16.6	9.29
Cash Conversion Cycle (days)	188.52	121

Valuation & price assessment

Q.1 Stock return of Centum Electronics Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 19.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	19.5%	50.6%	59.1%	57.7%

Q.2 Valuation ratios of Centum Electronics Ltd vs historical?

The current P/E ratio of 0 is lower than its historical median of 58.57, indicating that the stock is trading below its historical average valuation.

Q.3 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	-	58.57	37.32
Price to Book	11.02	5.81	3.80
Price to Sales	4.9	3.23	4.16
EV to EBITDA	34.82	24.36	22.30

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Check Before You Invest : Centum Electronics Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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