Centum Electronics Limited (CENTUM) AI Stock Analysis

• Market Cap: ₹35.33B
• Dividend Yield: 0.25%
• Average Volume (3M): 3.46K
• Price to Earnings (P/E): 304.3
• Beta (1Y): 1.55
• Revenue Growth: 10.29%
• EPS Growth: N/A
• Country: IN
• Employees: 1,290
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 5.90
• Shares Outstanding: 14,736,150
• 10 Day Avg. Volume: 2,847
• 30 Day Avg. Volume: 3,465
• PEG Ratio: 22.89
• Price to Book (P/B): 5.13
• Price to Sales (P/S): 1.84
• P/FCF Ratio: -43.34
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ₹2,527.00 ▲(5.26% Upside)

Centum Electronics Limited's overall stock score reflects a mixed financial performance with strengths in operational efficiency and equity management but significant challenges in profitability and cash flow sustainability. The technical analysis suggests a neutral to slightly bearish outlook, with potential short-term weakness. Valuation metrics indicate the stock may be overvalued, given its high P/E ratio and low dividend yield. These factors combined result in a cautious outlook for the stock.

Positive Factors

Revenue Growth

Positive revenue growth indicates expanding market presence and demand for Centum's products, supporting long-term business sustainability.

Operational Efficiency

Improved gross margins reflect enhanced operational efficiency, which can lead to better profitability and competitive advantage over time.

Improved Leverage

Reduced leverage enhances financial stability and lowers risk, providing Centum with greater flexibility for future investments and growth.

Negative Factors

Profitability Challenges

Negative net margins highlight ongoing profitability issues, which could hinder Centum's ability to reinvest and compete effectively.

Cash Flow Management

Negative cash flows indicate reliance on external financing, which can be unsustainable and limit Centum's operational flexibility.

Return on Equity

Negative ROE suggests inefficiency in generating returns on shareholders' equity, potentially impacting investor confidence and capital raising.

Centum Electronics Limited Business Overview & Revenue Model

Company Description

Centum Electronics Limited designs, manufactures, and sells electronic products in India, the United Kingdom, rest of Europe, North America, and internationally. The company offers embedded computers and power converters, test tools, LRU and data recorders, and satellite bus systems for the aerospace and space industries. It also provides onboard computer systems, receiver and seeker electronics, transmit receive modules, high power RF amplifiers, vibration hardened oscillators, power converters and systems, digital receivers, digital sequencer and payload controllers, power conditioning and processing units, and radar finger printing systems for the defense industry. In addition, the company offers base station equipment and RF filters for the communication industry; and industrial equipment diagnosis and circuit breaker control systems, solar energy power cabinets, and HIL test simulator turbo alternator regulation products for the industrial and energy sectors. Further, it provides medical devices and equipment that include digital radiography systems, automated pumps for drug injection, ultrasound equipment, patient monitoring devices, customized room controls for operation theaters, and others; and railway automation system gateways, railway embedded controllers and computer boards, and railway energy storage systems and modules, as well as specialist engineering and manufacturing services for the transportation sector. Additionally, the company offers assisted car navigation-passive rollover avoidance systems, automatic telematics modules, automotive flexray demonstrators, automotive elec boards for solar roofs, and power steering encoder acquisition systems for the automotive industry. Centum Electronics Limited was incorporated in 1993 and is headquartered in Bengaluru, India.

How the Company Makes Money

Centum Electronics generates revenue primarily through the sale of its electronic products and services across multiple sectors. The company has established a robust revenue model that includes direct sales to clients, long-term contracts with defense and aerospace agencies, and partnerships with other technology firms for collaborative projects. Key revenue streams include custom electronic solutions for government contracts, commercial electronics for consumer markets, and support services for its product lines. Additionally, CENTUM benefits from strategic partnerships that enhance its capabilities and market reach, further contributing to its earnings.

Centum Electronics Limited Financial Statement Overview

Summary

Centum Electronics Limited shows a mixed financial picture. The income statement indicates growth in revenue and gross margins but struggles with profitability, as reflected in negative net margins. The balance sheet is strong in terms of leverage and equity, yet profitability remains a concern. Cash flow management shows significant reliance on financing, with negative free and operating cash flows. Overall, while there are strengths in operational efficiency and equity management, the company needs to focus on improving profitability and cash flow sustainability.

Income Statement

Centum Electronics Limited shows a mixed performance in its income statement. The gross profit margin improved significantly from 8.5% in 2024 to 47.3% in 2025, indicating enhanced operational efficiency. However, the net profit margin turned negative in 2025 at -0.17%, down from 0.17% in 2024, primarily due to a net loss, which raises concerns. Revenue grew by 7.88% from 2024 to 2025, showing positive sales momentum. EBIT and EBITDA margins were 4.65% and 8.01% respectively, demonstrating moderate operational performance but room for improvement in profitability management.

Balance Sheet

The balance sheet shows a stable financial structure with a debt-to-equity ratio decreasing from 1.10 in 2024 to 0.46 in 2025, reflecting improved leverage. The equity ratio improved to 32.7%, indicating a stronger equity base relative to total assets. However, return on equity turned negative at -0.48% due to the net loss, highlighting profitability challenges. The overall stability is commendable, but profitability needs focus.

Cash Flow

Centum Electronics faced cash flow challenges with negative operating and free cash flows in 2025. The operating cash flow to net income ratio was negative, indicating cash outflows despite a net loss, which is a concern. The free cash flow to net income ratio was also negative. Despite these issues, the company had a high financing cash flow, suggesting reliance on external financing. The cash flow management needs improvement to ensure liquidity and reduce dependency on financing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.59B	11.31B	10.60B	8.84B	7.33B	7.67B
Gross Profit	4.35B	5.35B	1.01B	4.66B	4.20B	4.10B
EBITDA	1.01B	905.87M	783.52M	741.56M	68.33M	870.07M
Net Income	63.92M	24.56M	17.75M	98.16M	-305.43M	171.56M
Balance Sheet
Total Assets	0.00	12.39B	10.64B	10.73B	9.23B	9.80B
Cash, Cash Equivalents and Short-Term Investments	677.64M	1.78B	481.21M	352.71M	574.10M	453.90M
Total Debt	0.00	1.87B	2.25B	3.06B	3.19B	3.73B
Total Liabilities	-3.94B	8.45B	8.67B	8.69B	7.24B	7.40B
Stockholders Equity	3.94B	4.05B	2.03B	2.11B	2.04B	2.23B
Cash Flow
Free Cash Flow	0.00	-479.32M	1.81B	491.76M	847.34M	559.85M
Operating Cash Flow	0.00	-293.51M	2.14B	709.32M	1.03B	806.03M
Investing Cash Flow	0.00	-588.22M	-440.16M	-112.49M	-149.32M	119.45M
Financing Cash Flow	0.00	1.07B	-1.45B	-880.54M	-811.79M	-659.67M

Centum Electronics Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2400.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CENTUM, the sentiment is Positive. The current price of 2400.75 is above the 20-day moving average (MA) of 2291.05, below the 50-day MA of 2403.09, and above the 200-day MA of 2246.20, indicating a neutral trend. The MACD of -26.48 indicates Negative momentum. The RSI at 55.16 is Neutral, neither overbought nor oversold. The STOCH value of 67.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:CENTUM.

Centum Electronics Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CYIENTDLM	67 Neutral	₹33.75B	41.30	―	―	9.86%	21.38%
SYRMA	66 Neutral	₹141.37B	57.96	―	0.20%	1.30%	111.88%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KERNEX	60 Neutral	₹21.17B	39.37	―	―	155.87%	―
AVALON	59 Neutral	₹58.08B	66.72	―	―	46.80%	201.41%
NIITLTD	56 Neutral	₹13.07B	40.25	―	1.07%	12.25%	-28.69%
CENTUM	52 Neutral	₹35.33B	304.35	―	0.25%	10.29%	―

Centum Electronics Limited Corporate Events

Centum Electronics Ensures Regulatory Compliance with SEBI Certificate Submission

Centum Electronics Limited has submitted a certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ending September 30, 2025. This submission, facilitated by KFin Technologies Limited, ensures compliance with regulatory requirements regarding the dematerialization and rematerialization of securities, reflecting Centum’s commitment to maintaining transparency and regulatory adherence in its operations.

Centum Electronics Announces CFO Transition

Centum Electronics Limited has announced a change in its management team, with Mr. K S Desikan retiring as Chief Financial Officer on August 31, 2025. He will be succeeded by Mr. Sundararajan Parthasarathy, who brings over 24 years of experience across multiple sectors including healthcare, automotive, and energy infrastructure. This transition is expected to bring strategic leadership and business transformation to the company, potentially enhancing its market position and operational efficiency.

Centum Electronics Successfully Concludes 32nd AGM

Centum Electronics Limited held its Thirty Second Annual General Meeting on August 5, 2025, via video conferencing. The meeting saw all resolutions passed with the required majority, as confirmed by the scrutinizer’s report. This successful AGM underscores the company’s stable governance and shareholder engagement, reinforcing its position in the electronics industry.