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Centum Electronics Limited (IN:CENTUM)
:CENTUM
India Market
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Centum Electronics Limited (CENTUM) AI Stock Analysis

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IN:CENTUM

Centum Electronics Limited

(CENTUM)

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Neutral 53 (OpenAI - 5.2)
Rating:53Neutral
Price Target:
₹3,676.00
▲(64.45% Upside)
Action:Reiterated
Date:05/22/26
The score is held back mainly by volatile financial performance—FY2026 revenue declined sharply and the company reported a net loss, with free cash flow still under pressure despite a de-risked balance sheet. Technicals are a relative positive, with the stock trading above key moving averages and positive MACD, but valuation is constrained by negative earnings (negative P/E) and a minimal dividend yield.
Positive Factors
Improved leverage / balance-sheet health
Material de-leveraging over several years meaningfully reduces financial distress risk and increases strategic optionality. A lower debt burden supports the capacity to bid on multi-year contracts, fund selective capex or certifications, and withstand cyclical revenue swings without immediate refinancing pressure.
Negative Factors
Revenue volatility
Pronounced top-line swings undermine predictability for capital allocation and program planning. A ~20% revenue drop shows sensitivity to customer order cycles and program timing; sustained volatility increases the risk that fixed costs and supplier commitments will erode margins and strain execution on long-duration contracts.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage / balance-sheet health
Material de-leveraging over several years meaningfully reduces financial distress risk and increases strategic optionality. A lower debt burden supports the capacity to bid on multi-year contracts, fund selective capex or certifications, and withstand cyclical revenue swings without immediate refinancing pressure.
Read all positive factors

Centum Electronics Limited (CENTUM) vs. iShares MSCI India ETF (INDA)

Centum Electronics Limited Business Overview & Revenue Model

Company Description
Centum Electronics Limited, incorporated in 1993 and headquartered in Bengaluru, India, specializes globally in the design, production, and sale of electronic components and systems. The company's international reach extends across India, the Unit...
How the Company Makes Money
CENTUM primarily makes money by providing electronics design and manufacturing services and delivering electronic assemblies/systems to enterprise and government-oriented customers, typically under project-based and production contracts. Key reven...

Centum Electronics Limited Financial Statement Overview

Summary
Financials are mixed: leverage has improved significantly (debt-to-equity down to ~0.36), but operating results and cash generation are volatile. FY2026 saw a sharp revenue contraction (~-20%) and a net loss (net margin ~-5%) despite an improved EBIT margin (~12%). Free cash flow remains pressured (roughly break-even to slightly negative), making earnings and cash-flow durability key risks.
Income Statement
34
Negative
Balance Sheet
56
Neutral
Cash Flow
38
Negative
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue9.53B11.31B10.60B8.84B7.33B
Gross Profit1.80B5.35B1.01B4.66B4.20B
EBITDA1.73B905.87M783.52M741.56M68.33M
Net Income-518.06M24.56M17.75M98.16M-305.43M
Balance Sheet
Total Assets13.03B12.39B10.64B10.73B9.23B
Cash, Cash Equivalents and Short-Term Investments1.20B1.78B481.21M352.71M574.10M
Total Debt1.23B1.87B2.25B3.06B3.19B
Total Liabilities9.76B8.45B8.67B8.69B7.24B
Stockholders Equity3.43B4.05B2.03B2.11B2.04B
Cash Flow
Free Cash Flow-2.24M-479.32M1.81B491.76M847.34M
Operating Cash Flow401.52M-293.51M2.14B709.32M1.03B
Investing Cash Flow-485.79M-588.22M-440.16M-112.49M-149.32M
Financing Cash Flow1.90M1.07B-1.45B-880.54M-811.79M

Centum Electronics Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2235.35
Price Trends
50DMA
3372.23
Positive
100DMA
3061.75
Positive
200DMA
2738.87
Positive
Market Momentum
MACD
67.28
Positive
RSI
53.61
Neutral
STOCH
53.81
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 2235.35 is below the 20-day moving average (MA) of 3627.32, below the 50-day MA of 3372.23, and below the 200-day MA of 2738.87, indicating a neutral trend. The MACD of 67.28 indicates Positive momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 53.81 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
₹273.59B83.360.20%27.28%76.63%
64
Neutral
₹36.76B33.96126.70%115.78%
61
Neutral
₹42.20B58.28-16.99%7.58%
58
Neutral
₹13.28B246.051.07%9.11%-88.46%
57
Neutral
₹116.85B99.1645.99%76.41%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
53
Neutral
₹53.45B-115.440.25%6.93%-2481.56%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:CENTUM
Centum Electronics Limited
3,645.15
1,266.29
53.23%
IN:AVALON
Avalon Technologies Limited
1,678.80
796.65
90.31%
IN:CYIENTDLM
Cyient DLM Limited
538.40
54.95
11.37%
IN:KERNEX
Kernex Microsystems India Ltd.
2,193.35
1,034.05
89.20%
IN:NIITLTD
NIIT Limited
95.95
-29.30
-23.39%
IN:SYRMA
Syrma SGS Technology Limited
1,403.50
709.14
102.13%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 22, 2026