Centrum Capital Limited (CENTRUM) AI Stock Analysis

• Market Cap: ₹11.27B
• Dividend Yield: N/A
• Average Volume (3M): 25.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: 47.88%
• EPS Growth: 11.61%
• Country: IN
• Employees: 5,400
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Conglomerates
• EPS (TTM): -0.96
• Shares Outstanding: 459,579,200
• 10 Day Avg. Volume: 18,260
• 30 Day Avg. Volume: 25,007
• PEG Ratio: -0.06
• Price to Book (P/B): 3.60
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 0.47
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: ₹23.00 ▼(-17.27% Downside)

Centrum Capital Limited's overall stock score is primarily impacted by its weak financial performance and valuation. The company's high leverage and operational inefficiencies pose significant risks. Technical indicators suggest a bearish trend, further contributing to the low score. The absence of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Diversified Fee-Based Model

Centrum's diversified fee-based model across investment banking, asset management, broking and wealth management reduces reliance on a single revenue source. This enables cross-selling, smoother revenue cycles and structural resilience to sector-specific shocks over several quarters.

Strong Revenue Growth

Reported top-line growth (~48%) signals material demand expansion for Centrum's services. Sustained revenue momentum supports scale economies, platform investment and competitive positioning, provided the company translates growth into stable margins and consistent cash conversion.

Improving Free Cash Flow

Improvement in free cash flow despite prior volatility gives Centrum more internal funding for operations, deleveraging or strategic initiatives. Stronger FCF enhances financial flexibility and reduces reliance on external capital over a multi-quarter timeframe.

Negative Factors

High Leverage

The balance sheet's elevated leverage and low equity ratio increase interest expense and refinancing risk. High debt levels constrain capital allocation, reduce resilience to rate or revenue shocks, and limit strategic flexibility across several quarters.

Persistent Losses

Consistent negative net income and margins erode shareholder equity and limit capacity to self-fund growth. Persistent losses raise the need for restructuring or external capital, undermining long-term returns and strategic independence if not corrected.

Volatile Operating Margins

Volatility in EBIT/EBITDA margins points to weak cost control and inconsistent operational execution. Margin instability reduces cash flow predictability, increases execution risk for scaling initiatives, and pressures sustainable profitability over time.

Centrum Capital Limited Business Overview & Revenue Model

Company Description

Centrum Capital Limited, together with its subsidiaries, provides various financial services for institutions and individuals in India. It operates through Banking Business, Institutional Business, Wealth Management & Distribution, Housing Finance Business, and SME / Micro Credit Lending Business segments. The company offers investment banking services, including equity initial public offerings (IPO), follow-on public offerings and rights issues, pre-IPO placements, qualified institutional placements, American depository receipts, global depository receipts, convertible issuances, buybacks and delisting, open offers, and valuation advisory services; and mergers and acquisitions, structured finance advisory, and services private equity advisory, as well as infrastructure advisory services. It also provides working capital, term loans/corporate loans, project finance, and external commercial borrowings/foreign currency loans; home and non-home loans; philanthropy and trust and estate; stock broking and insurance services; and private debt and venture capital funding services. In addition, the company offers institutional equities and research services, as well as trades in bonds. Centrum Capital Limited was incorporated in 1977 and is based in Mumbai, India with additional locations in Wan Chai, Hong Kong; Singapore; and Ebene, Mauritius.

How the Company Makes Money

Centrum Capital generates revenue through multiple key streams. Primarily, it earns fees and commissions from its investment banking services, which include mergers and acquisitions, equity and debt syndication, and advisory services for corporate clients. Additionally, the company derives income from asset management through management fees on mutual funds and portfolio management services. Trading commissions from its stock broking operations also contribute to its revenue, as does income from wealth management services provided to high-net-worth individuals. CENTRUM has established partnerships with various financial institutions and investment firms, enabling it to expand its service offerings and enhance its market reach. These partnerships often lead to joint ventures and collaborative projects, further diversifying its revenue base.

Centrum Capital Limited Financial Statement Overview

Summary

Centrum Capital Limited faces challenges with profitability and high leverage, which could impact its financial health. While there are signs of revenue growth and improved free cash flow, the company needs to address operational inefficiencies and reduce its debt burden to enhance financial stability and shareholder value.

Income Statement

Centrum Capital Limited has shown some revenue growth over the years, but profitability remains a significant concern. The company has consistently reported negative net income, leading to negative net profit margins. While the gross profit margin is relatively high, the EBIT and EBITDA margins have been volatile, indicating operational inefficiencies.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio significantly above industry norms, posing a risk to financial stability. The negative return on equity further highlights the company's struggle to generate returns for shareholders. The equity ratio is low, indicating heavy reliance on debt financing.

Cash Flow

Cash flow analysis shows improvement in free cash flow, but the operating cash flow has been inconsistent, with significant negative values in previous years. The free cash flow to net income ratio is relatively strong, suggesting that the company is generating cash despite net losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	27.68B	26.93B	20.36B	12.14B	6.68B	4.69B
Gross Profit	10.88B	14.71B	9.47B	4.59B	815.37M	549.11M
EBITDA	8.43B	11.19B	6.12B	2.48B	-1.10B	-39.85M
Net Income	-1.10B	-1.87B	-993.49M	-1.50B	-1.77B	-468.72M
Balance Sheet
Total Assets	0.00	225.89B	173.84B	117.40B	124.95B	31.60B
Cash, Cash Equivalents and Short-Term Investments	0.00	43.83B	6.70B	7.80B	51.57B	3.66B
Total Debt	0.00	43.07B	43.64B	26.53B	22.76B	19.43B
Total Liabilities	-16.26B	209.64B	156.41B	98.64B	105.06B	23.84B
Stockholders Equity	16.26B	2.79B	4.41B	5.93B	6.75B	5.80B
Cash Flow
Free Cash Flow	0.00	21.18B	176.71M	-40.79B	-5.92B	-457.62M
Operating Cash Flow	0.00	25.32B	1.20B	-40.54B	-5.44B	-403.68M
Investing Cash Flow	0.00	-17.08B	-15.50B	1.42B	-2.86B	-562.58M
Financing Cash Flow	0.00	-5.87B	15.03B	970.59M	45.75B	1.37B

Centrum Capital Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CENTRUM, the sentiment is Negative. The current price of 27.8 is above the 20-day moving average (MA) of 26.40, below the 50-day MA of 28.04, and below the 200-day MA of 32.36, indicating a bearish trend. The MACD of -1.33 indicates Positive momentum. The RSI at 35.41 is Neutral, neither overbought nor oversold. The STOCH value of 20.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CENTRUM.

Centrum Capital Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMCGLOBAL	70 Outperform	₹16.13B	16.50	―	0.70%	-5.03%	-54.73%
5PAISA	68 Neutral	₹10.79B	24.87	―	―	-25.11%	-24.87%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CREST	63 Neutral	₹10.64B	20.58	―	0.26%	-9.89%	-42.10%
BIRLAMONEY	63 Neutral	₹7.06B	14.39	―	―	-6.37%	-24.10%
CENTRUM	39 Underperform	₹11.27B	-7.86	―	―	47.88%	11.61%

Centrum Capital Limited Corporate Events

Centrum Capital to Transfer Merchant Banking Division to Subsidiary, Surrender SEBI Registration

Centrum Capital’s board has approved the transfer of its Merchant Banking division to its subsidiary Centrum Broking Limited via a slump sale on an as-is-where-is, going-concern basis for a consideration of Rs 1.79 crore, with completion expected in the next two to three months subject to regulatory approvals. The unit contributed only 0.32% to the company’s consolidated turnover in FY 2024-25, indicating a relatively minor revenue impact, while the intra-group, arm’s-length transaction and planned surrender of Centrum Capital’s merchant banker registration signal a restructuring of responsibilities within the group rather than an exit from capital markets, with implications mainly for regulatory alignment and internal business focus.