Centum Electronics Limited (CENTUM) AI Stock Analysis

• Market Cap: ₹34.26B
• Dividend Yield: 0.25%
• Average Volume (3M): 3.46K
• Price to Earnings (P/E): 295.1
• Beta (1Y): 1.63
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹2,393.00 ▲(7.05% Upside)

The score is driven mainly by mixed financial performance—stronger gross margin and improved leverage are offset by a net loss, negative ROE, and weak cash flow sustainability. Technicals are neutral-to-soft with negative MACD and price below key moving averages, and valuation is a major headwind given the very high P/E and minimal dividend yield.

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: 2235.35
• 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 2235.35 is below the 20-day moving average (MA) of 2284.31, below the 50-day MA of 2337.44, and below the 200-day MA of 2310.59, indicating a neutral trend. The MACD of -18.25 indicates Negative momentum. The RSI at 51.82 is Neutral, neither overbought nor oversold. The STOCH value of 61.99 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	₹31.52B	38.59	―	―	9.86%	21.38%
SYRMA	66 Neutral	₹136.12B	55.80	―	0.20%	1.30%	111.88%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AVALON	59 Neutral	₹60.29B	68.47	―	―	46.80%	201.41%
KERNEX	57 Neutral	₹21.05B	39.12	―	―	155.87%	―
NIITLTD	56 Neutral	₹11.41B	35.13	―	1.07%	12.25%	-28.69%
CENTUM	55 Neutral	₹34.26B	295.08	―	0.25%	10.29%	―

Centum Electronics Limited Corporate Events

Centum Electronics Elevates Strategic Electronics Head to Group CTO Role

Centum Electronics has announced a change in its senior management, elevating Dr. Vinod Chippalkatti from President of the Strategic Electronics Business Unit to the role of Chief Technology Officer (CTO) for the Centum Group with immediate effect. The move consolidates technology leadership at group level and leverages Dr. Chippalkatti’s more than 25 years of experience at Centum and prior decade at ISRO, signalling a strategic emphasis on innovation and advanced engineering in the company’s core space and defence-focused businesses.

Centum Electronics Files SEBI Regulation 74(5) Compliance Certificate for December Quarter

Centum Electronics Limited has submitted to the stock exchanges a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025. The company’s registrar and transfer agent, KFin Technologies Limited, confirmed that details of securities dematerialised and rematerialised during the period have been duly furnished to all exchanges where Centum’s shares are listed, underscoring ongoing regulatory compliance in handling its demat and remat transactions and providing assurance to investors and market regulators about the integrity of its share transfer processes.

Centum Electronics Strengthens Board With Appointment of Independent Director Apurva Chandra

Centum Electronics Limited has appointed Apurva Chandra as an Additional Director in the capacity of Non-Executive, Independent Director, effective 19 December 2025, for a five-year term, based on the recommendation of its Nomination and Remuneration Committee and subject to shareholder approval. The move strengthens the company’s board with an independent voice, and the company has confirmed that Chandra is not related to existing directors, key managerial personnel or promoters and is not debarred from holding directorship by any regulatory authority, underscoring its emphasis on governance and regulatory compliance under SEBI’s listing norms.