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Centum Electronics Ltd. Stock Analysis

Small Cap
Evaluated by 496 users | BSE: 517544 | NSE: CENTUM |
Electronics - Components
Centum Electronics incorporated in 1993; was erstwhile known as Solectron Centrum Electronics. Later, after the demerger, the name was changed to present one in December 2007.The company is basically engaged in designing and manufacturing of advanced electronics systems, subsystems, and...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 5.38%8.03%-1.34%30.36%20.65%18.76%12.62%-2.92%14.19%11.58%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 187181181292316332387355499482
Y-o-Y Gr. Rt.--3.1%-0.2%61.4%8.4%4.9%16.7%-8.2%40.3%-3.3%
Adjusted EPS (Rs.) 2.125.09-3.626.9424.9128.3323.95-16.1729.0122.89
Y-o-Y Gr. Rt.-140.1%-170.7%NA-7.5%13.7%-15.5%-167.5%NA-21.1%
Book Value per Share (Rs.) 63.566.5361.8583.83104.69127146.63124.5168.55183.3
Adjusted Net Profit 2.66.3-4.533.531.335.930.5-20.837.429.5
Net Op. Cash Flow (Rs. Cr.) -5.28.22.426.3-3.141.46-23.631.665.7
Debt to Cash Flow from Ops -7.344.3814.221.2-19.311.6925.02-8.836.492.81
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Centum Electronics Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 11.1%8.8%7.6%-3.3%
Adjusted EPS 30.3%-1.7%-1.5%-21.1%
Book Value per Share 12.511.97.78.8
Share Price 21.1% -12% -21.4% -15%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 3.387.84-5.637.0626.5624.5417.56-11.9819.7913
Operating Profit Margin (%) 8.7410.842.2516.9313.2814.5212.870.4514.6516.09
Net Profit Margin (%) 1.43.48-2.4611.479.910.827.89-5.867.496.11
Debt to Equity 0.480.440.440.30.450.440.81.30.950.78
Working Capital Days 221247247169218273259341313349
Cash Conversion Cycle 9813814089131148135201178198
Entity Percentage Holding
Promoters 58.80%
Institutions 7.36%
Non-Institutions 33.84%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Centum Electronics Ltd.'s performance infers:

Centum Electronics Ltd. earnings have declined by -1.7%, whereas share price has depreciated -12% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Centum Electronics Ltd. share prices over the last 10 years. Here is what we found out:

Centum Electronics Ltd. share price has depreciated 9% annually over the past ten years.

Centum Electronics incorporated in 1993; was erstwhile known as Solectron Centrum Electronics. Later, after the demerger, the name was changed to present one in December 2007.

The company is basically engaged in designing and manufacturing of advanced electronics systems, subsystems, and components. These products caters to various segments such as communications, military, space, automotive and industrial electronics.

Centrum has received various certifications such as ISO9001: 2000,

Centum Electronics incorporated in 1993; was erstwhile known as Solectron Centrum Electronics. Later, after the demerger, the name was changed to present one in December 2007.

The company is basically engaged in designing and manufacturing of advanced electronics systems, subsystems, and components. These products caters to various segments such as communications, military, space, automotive and industrial electronics.

Centrum has received various certifications such as ISO9001: 2000, ISO/TS16949: 2002 and ISO 140001:2004 quality management. The company’s products have also received approval from C-DOT and CACT for telecom applications. The company has received approval from Regional Centre for Military Airworthiness to use in military and aerospace applications.

The company markets its products to majors like Nortel, Lucent, Nokia, BI Technologies, Marconi, LG, Samsung, ITI, HTL, Punjab Communication, Crompton Greaves, L&T, ABB and Deltron to name few.

Products

Frequency Control Products (FCP)- The company is known as the largest design, manufacturing and exporting company for frequency-controlled products in India. These products are used in various applications such as aerospace, military, telecom, etc.

FCP is a hi-tech product where technology changes, due to this the company has entered in joint venture with Rakon. Rakon is New Zealand based company, a world leader in FCP products. This 51:49 joint venture will help Centrum Electronics built advanced technologies

System and Modules- Under this, the company is engaged in designing and manufacturing of Crystals and Oscillators. Crystals are used in Stratum applications. The company manufactures high-end products such as DC converters for defence and space segment.

Outlook

Centum Electronics has received an order worth Rs. 4.3 crores to supply sub-systems to a defence sector unit.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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