NSEI:CENTUM

Stock Analysis Report

Centum Electronics

Executive Summary

Centum Electronics Limited designs, manufactures, and sells microelectronic modules, frequency control products, printed circuit board assemblies, and resistor networks in India, Europe, the United States, and internationally.


Snowflake Analysis

Good value with adequate balance sheet.

Share Price & News

How has Centum Electronics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CENTUM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.5%

CENTUM

-5.9%

IN Electronic

-1.5%

IN Market


1 Year Return

-5.3%

CENTUM

47.4%

IN Electronic

10.7%

IN Market

Return vs Industry: CENTUM underperformed the Indian Electronic industry which returned 47.4% over the past year.

Return vs Market: CENTUM underperformed the Indian Market which returned 10.7% over the past year.


Shareholder returns

CENTUMIndustryMarket
7 Day-5.5%-5.9%-1.5%
30 Day-9.9%19.3%-2.7%
90 Day-6.3%23.1%1.3%
1 Year-4.5%-5.3%48.6%47.4%12.7%10.7%
3 Year-38.4%-39.5%108.9%103.5%22.0%15.1%
5 Year-57.6%-58.7%88.3%81.5%34.5%22.0%

Price Volatility Vs. Market

How volatile is Centum Electronics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Centum Electronics undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CENTUM (₹366.95) is trading below our estimate of fair value (₹903.56)

Significantly Below Fair Value: CENTUM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CENTUM is good value based on its PE Ratio (12.6x) compared to the Electronic industry average (13.8x).

PE vs Market: CENTUM is good value based on its PE Ratio (12.6x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CENTUM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CENTUM is overvalued based on its PB Ratio (2.9x) compared to the IN Electronic industry average (0.8x).


Next Steps

Future Growth

How is Centum Electronics forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

24.2%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Centum Electronics has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Centum Electronics performed over the past 5 years?

-4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CENTUM has high quality earnings.

Growing Profit Margin: CENTUM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CENTUM's earnings have declined by -4.6% per year over the past 5 years.

Accelerating Growth: CENTUM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CENTUM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (10.6%).


Return on Equity

High ROE: CENTUM's Return on Equity (17.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Centum Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: CENTUM's short term assets (₹7.6B) exceed its short term liabilities (₹7.3B).

Long Term Liabilities: CENTUM's short term assets (₹7.6B) exceed its long term liabilities (₹1.1B).


Debt to Equity History and Analysis

Debt Level: CENTUM's debt to equity ratio (105.3%) is considered high.

Reducing Debt: CENTUM's debt to equity ratio has increased from 46.5% to 105.3% over the past 5 years.

Debt Coverage: CENTUM's debt is well covered by operating cash flow (57.2%).

Interest Coverage: CENTUM's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

Inventory Level: CENTUM has a high level of physical assets or inventory.

Debt Coverage by Assets: CENTUM's debt is covered by short term assets (assets are 2.9x debt).


Next Steps

Dividend

What is Centum Electronics's current dividend yield, its reliability and sustainability?

1.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CENTUM's dividend (1.36%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: CENTUM's dividend (1.36%) is low compared to the top 25% of dividend payers in the Indian market (2.58%).


Stability and Growth of Payments

Stable Dividend: CENTUM's dividend payments have been volatile in the past 10 years.

Growing Dividend: CENTUM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.7%), CENTUM's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.9yrs

Average board tenure


CEO

Apparao Mallavarapu (63yo)

25.5yrs

Tenure

₹16,650,000

Compensation

Mr. AppaRao V. Mallavarapu is the Founder of Centum Electronics Ltd. of Centum Rakon India Private Limited and has been its Managing Director since August 1, 1994. Mr. Mallavarapu has been Managing Directo ...


CEO Compensation Analysis

Compensation vs Market: Apparao 's total compensation ($USD232.67K) is above average for companies of similar size in the Indian market ($USD50.34K).

Compensation vs Earnings: Apparao 's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Apparao Mallavarapu
Chairman & MD25.5yrs₹16.65m51.26% 2.4b
Rajiv Mody
Independent Non-Executive Director9.5yrs₹260.00kno data
Brent Robinson
Additional Director of Centum Rakon India Private Limited11.9yrsno datano data
Manoj Nagrath
Independent Non-Executive Director10.1yrs₹380.00kno data
S. Krishnan
Independent Non-Executive Director12.4yrs₹380.00k0.00064% 30.5k
Swarnalatha Mallavarapu
Non-Executive & Non-Independent Director4.9yrsno data2.87% 136.6m
Pranav Kumar Patel
Independent Non-Executive Director6.1yrs₹380.00kno data
P. Thiruvengadam
Independent Non-Executive Director4yrs₹340.00kno data

8.9yrs

Average Tenure

62yo

Average Age

Experienced Board: CENTUM's board of directors are considered experienced (8.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 77.8%.


Top Shareholders

Company Information

Centum Electronics Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Centum Electronics Limited
  • Ticker: CENTUM
  • Exchange: NSEI
  • Founded: 1993
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: ₹4.767b
  • Shares outstanding: 12.88m
  • Website: https://www.centumelectronics.com

Location

  • Centum Electronics Limited
  • No. 44, KHB Industrial Area
  • Yelahanka Newtown
  • Bengaluru
  • Karnataka
  • 560106
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
517544BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1995
CENTUMNSEI (National Stock Exchange of India)YesEquity SharesININRJul 1995

Biography

Centum Electronics Limited designs, manufactures, and sells microelectronic modules, frequency control products, printed circuit board assemblies, and resistor networks in India, Europe, the United States, 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 founded in 1993 and is headquartered in Bengaluru, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 12:57
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.