Centrum Capital Limited (CENTRUM) AI Stock Analysis

• Market Cap: ₹11.91B
• Dividend Yield: N/A
• Average Volume (3M): 25.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: 47.88%
• EPS Growth: 11.61%
• Country: IN
• Employees: 5,400
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Conglomerates
• EPS (TTM): -2.18
• 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: 46 Neutral
• Price Target: ₹25.00 ▼(-10.07% Downside)
• Action: Reiterated Date: 03/21/26
• Date: Action: Reiterated 03/21/26

The score is primarily held down by weak fundamentals—ongoing net losses and high leverage—despite some improvement in free cash flow. Technicals are neutral overall with a negative MACD and longer-term downtrend signals, while valuation is constrained by a negative P/E and no dividend yield data.

Positive Factors

Revenue Growth

Sustained ~35% reported revenue growth is a durable sign of expanding underlying business activity and market traction. Over 2–6 months this growth supports scale economies, improves leverage of fixed costs, and creates optionality to invest in product, distribution, or deleveraging initiatives.

Free Cash Flow Improvement

Improving free cash flow despite net losses indicates the firm can convert operations into cash, reducing immediate refinancing pressure. That durable cash-generation capability can fund working capital, capex, or gradual debt reduction and supports operational resilience over months.

Strong Gross Margin

A relatively high gross profit margin implies core products/services have structural pricing power or low direct costs. Over time this provides room to absorb SG&A, invest in competitive differentiation, and sustainably improve operating profitability if fixed-cost absorption or efficiency initiatives proceed.

Negative Factors

Ongoing Net Losses

Persistent net losses erode equity and limit the company’s ability to self-fund growth or cushion shocks. Over a multi-month horizon this weakens reinvestment capacity, reduces retained earnings, and necessitates either sustained margin recovery or external financing to normalize operations.

High Leverage

A materially elevated debt-to-equity ratio increases interest and refinancing risk and constrains strategic flexibility. In a 2–6 month view high leverage magnifies downside from operational volatility, restricts capital allocation, and can force priority on debt servicing over growth investments.

Volatile Margins & OCF

Swinging EBIT/EBITDA margins combined with inconsistent operating cash flow reduce earnings predictability and planning horizon clarity. This structural volatility complicates budgeting, hinders reliable debt paydown, and raises execution risk for margin-improvement programs over coming months.

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

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Centrum Capital Limited Financial Statement Overview

Summary

Financial performance is weak: profitability remains negative with volatile EBIT/EBITDA margins, and the balance sheet shows high leverage and negative ROE. Free cash flow has improved, but operating cash flow has been inconsistent, limiting the overall strength of the fundamentals.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	28.85B	26.93B	20.36B	12.14B	6.68B	4.69B
Gross Profit	11.63B	14.71B	9.47B	4.59B	815.37M	549.11M
EBITDA	8.93B	11.19B	6.12B	2.48B	-1.10B	-39.85M
Net Income	-1.27B	-1.87B	-993.49M	-1.50B	-1.77B	-468.72M
Balance Sheet
Total Assets	235.15B	225.89B	173.84B	117.40B	124.95B	31.60B
Cash, Cash Equivalents and Short-Term Investments	14.35B	43.83B	6.70B	7.80B	51.57B	3.66B
Total Debt	49.91B	43.07B	43.64B	26.53B	22.76B	19.43B
Total Liabilities	217.78B	209.64B	156.41B	98.64B	105.06B	23.84B
Stockholders Equity	4.52B	2.79B	4.41B	5.93B	6.75B	5.80B
Cash Flow
Free Cash Flow	-5.67B	21.18B	176.71M	-40.79B	-5.92B	-457.62M
Operating Cash Flow	-4.66B	25.32B	1.20B	-40.54B	-5.44B	-403.68M
Investing Cash Flow	-2.98B	-17.08B	-15.50B	1.42B	-2.86B	-562.58M
Financing Cash Flow	6.52B	-5.87B	15.03B	970.59M	45.75B	1.37B

Centrum Capital Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 27.8 is above the 20-day moving average (MA) of 23.03, above the 50-day MA of 24.83, and below the 200-day MA of 31.80, indicating a neutral trend. The MACD of -0.81 indicates Negative momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 45.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:CENTRUM.

Centrum Capital Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5PAISA	68 Neutral	₹9.09B	21.20	―	―	-25.11%	-24.87%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SMCGLOBAL	66 Neutral	₹13.57B	15.62	―	0.70%	-5.03%	-54.73%
CREST	63 Neutral	₹9.36B	24.59	―	0.26%	-9.89%	-42.10%
BIRLAMONEY	63 Neutral	₹6.30B	14.15	―	―	-6.37%	-24.10%
CENTRUM	46 Neutral	₹11.91B	-3.33	―	―	47.88%	11.61%

Centrum Capital Limited Corporate Events

Centrum Capital Secures RBI Nod to Sell Entire Stake in Housing Finance Arm

Centrum Capital Limited has announced that its material subsidiary, Centrum Housing Finance Limited, has received Reserve Bank of India approval for a change in control, clearing a key regulatory hurdle for the sale of Centrum’s entire stake in CHFL to Weaver Services Private Limited under an existing share purchase agreement. The transaction, which is still subject to fulfillment of other conditions precedent set out in the agreement, marks a significant step in Centrum’s planned exit from its housing finance arm and could reshape the group’s business portfolio, with implications for its capital allocation and strategic focus within the wider financial services landscape.

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.