Centum Electronics Ltd (CENTUM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Centum Electron

GMM Pfaudler

WPIL

Kennametal India

Dynamatic Tech.

The Anup Enginee

Praj Industries

Texmaco Rail

Lloyds Engineeri

Shanthi Gears

Aequs

Why is Centum Electronics Ltd ?

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.25

Poor long term growth as Net Sales has grown by an annual rate of 8.30% and Operating profit at 10.44% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.25
The company has been able to generate a Return on Equity (avg) of 5.13% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.30% and Operating profit at 10.44% over the last 5 years

With a growth in Net Profit of 219.95%, the company declared Very Positive results in Dec 25

PBT LESS OI(Q) At Rs 45.03 cr has Grown at 145.93%
ROCE(HY) Highest at 16.95%
OPERATING PROFIT TO INTEREST(Q) Highest at 4.55 times

With ROCE of 15.6, it has a Expensive valuation with a 8.7 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 109.68%, its profits have risen by 2086.7% ; the PEG ratio of the company is 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Centum Electron should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Centum Electron for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Centum Electron

109.68%

1.97

55.81%

Sensex

1.0%

0.08

12.13%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.30%

EBIT Growth (5y)

10.44%

EBIT to Interest (avg)

1.25

Debt to EBITDA (avg)

3.73

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

1.84

Tax Ratio

82.68%

Dividend Payout Ratio

359.29%

Pledged Shares

Institutional Holding

22.34%

ROCE (avg)

8.36%

ROE (avg)

5.13%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

9.75

EV to EBIT

52.19

EV to EBITDA

34.49

EV to Capital Employed

8.67

EV to Sales

3.20

PEG Ratio

0.04

Dividend Yield

0.22%

ROCE (Latest)

15.63%

ROE (Latest)

9.28%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

26What is working for the Company

ROCE(HY)

Highest at 16.95%

OPERATING PROFIT TO INTEREST(Q)

Highest at 4.55 times

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 153.80 cr

NET SALES(Q)

At Rs 331.44 cr has Grown at 21.39%

PBT LESS OI(Q)

Highest at Rs 45.03 cr.

PAT(Q)

Highest at Rs 25.37 cr.

-3What is not working for the Company

EPS(Q)

Lowest at Rs -41.89

Loading Valuation Snapshot...

Here's what is working for Centum Electron

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 45.03 cr has Grown at 145.93%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 25.37 cr has Grown at 193.3%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 4.55 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

At Rs 331.44 cr has Grown at 21.39%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 45.03 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 25.37 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 153.80 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Centum Electron

Earnings per Share (EPS) - Quarterly

Lowest at Rs -41.89

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)