Centum Electronics Experiences Quality Grade Revision Amid Strong Financial Performance

Centum Electronics has recently undergone an evaluation revision, reflecting a shift in its quality assessment. The company, operating within the industrial manufacturing sector, has demonstrated notable financial metrics that contribute to this adjustment. Over the past five years, Centum has achieved a sales growth rate of 6.00% and an EBIT growth of 2.64%. Its EBIT to interest ratio stands at 1.18, indicating a stable capacity to cover interest expenses.
In terms of leverage, Centum's debt to EBITDA ratio is recorded at 4.14, while its net debt to equity ratio is 1.38, suggesting a moderate level of debt relative to its equity. The company's sales to capital employed ratio is 1.77, reflecting efficient use of capital. Additionally, Centum maintains a tax ratio of 100% and a high dividend payout ratio of 435.65%, which may indicate a commitment to returning value to shareholders.

When compared to its peers, Centum's performance appears competitive, with several companies in the same industry also holding average quality assessments. Notably, Centum's return metrics over various periods, including a 37.76% return over the past year, outpace the broader market represented by the Sensex, which returned 8.36% in the same timeframe. This performance highlights Centum's strong market position relative to its industry counterparts.