Regulatory
HIGHTrigger: International subsidiaries have higher cost structures (employee costs in Canada and France) with weak demand, leading to recurring losses at consolidated level
Monitor: regulatory
Centum Electronics Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +35.4%Weak11w Streak
In , Centum Electronics Ltd (EMS) is outperforming Nifty 500 with +35.4% relative strength. Fundamentals: Weak. On a 11-week streak.
Centum Electronics Ltd Key Facts
- PE Ratio
- 82.3x
- Market Cap
- ₹4,577 Cr
- PAT Growth YoY
- -226%
- Revenue Growth YoY
- +21%
- OPM
- 9.0%
- RS vs Nifty 500
- +35.4%
PE: Near TroughDanger Bubble
What's Happening
⚠️PE rising despite falling earnings — price running ahead of reality
👔Promoter stake down 11.8% this quarter
🌐FII stake increased 2.5% this quarter
🏛️DII accumulation — stake up 10.8%
💰Trading 87% above estimated fair value — significant premium
Key Risks
1. Regulatory
HIGH2. Commodity
MEDIUM3. Geopolitical
MEDIUMKey Numbers
PAT Growth YoY
-226%
Inflection Down
Revenue YoY
+21%
Stable
Operating Margin
9.0%
-100 bps YoY
PE Ratio
82.3
Current Price
₹3,105
Dividend Yield
0.19%
Fundamental Score
24/100
Weak
3Y PAT CAGR
+33%
Market Cap
4.6K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
What Are the Key Risks for Centum Electronics Ltd?
Earnings deceleration risks from management commentary
Commodity
MEDIUMTrigger: Supply chain dependency on components for defence/space products and competitive pricing in EMS segment can pressure margins
Monitor: commodity
Geopolitical
MEDIUMTrigger: European defence spending cycles and weak industrial demand create structural headwind for Centum's ER&D and EMS businesses in Europe
Monitor: geopolitical
Logistics
LOWTrigger: No specific supply chain disruption flagged in available sources
Monitor: logistics
Fx
MEDIUMTrigger: Consolidated revenues partially denominated in EUR and USD; subsidiary losses amplified in INR when converted
Monitor: fx
What Is Centum Electronics Ltd's Management Saying?
Key quotes from recent conference calls
“Operating Profit stands at ₹-55.66 crore, reflecting QoQ decrease of 445.93 per cent from ₹16.09 crore — driven by impairment charges in overseas subsidiaries [Risk (regulatory): HIGH]”
“Inventory build-up in H1 was strategic and order-backed, supporting upcoming delivery schedules in both, BTS and EMS [Risk (commodity): MEDIUM]”
“Europe operations: Facing headwinds due to weak macro conditions and margin pressure; strategic alternatives being evaluated [Risk (geopolitical): MEDIUM]”
“Its geographical segments include India, its key revenue-generating market; Europe and the UK; North America; and the Rest of the world [Risk (fx): MEDIUM]”
How Fast Is Centum Electronics Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +21% | +14% | Stable |
| PAT (Net Profit) | -226% | +33% | Inflection Down |
| OPM | 9.0% | -100 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 30, 2026.
Other Top EMS Stocks Beating Nifty 500
Frequently Asked Questions: Centum Electronics Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Centum Electronics Ltd's latest quarterly results?
Centum Electronics Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: -226.3% (inflecting downward)
- Revenue Growth YoY: +21.2%
- Operating Margin: 9.0% (stable)
Is Centum Electronics Ltd's profit growing or declining?
Centum Electronics Ltd's profit is declining with an inflecting downward trend.
- PAT Growth YoY: -226.3% (latest quarter)
- PAT Growth QoQ: -1650.0% (sequential)
- 3-Year PAT CAGR: +33.3%
- Trend: Inflecting downward — consistent growth pattern
What is Centum Electronics Ltd's revenue growth trend?
Centum Electronics Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +21.2%
- Revenue Growth QoQ: +19.5% (sequential)
- 3-Year Revenue CAGR: +14.0%
How is Centum Electronics Ltd's operating margin trending?
Centum Electronics Ltd's operating margin is stable.
- Current OPM: 9.0%
- OPM Change YoY: -1.0% basis points
- OPM Change QoQ: +2.0% basis points
What is Centum Electronics Ltd's 3-year profit and revenue CAGR?
Centum Electronics Ltd's long-term compounding rates
- 3-Year Profit CAGR: +33.3%
- 3-Year Revenue CAGR: +14.0%
Is Centum Electronics Ltd's growth accelerating or decelerating?
Centum Electronics Ltd's earnings growth is inflecting downward with mixed signals on a sequential basis.
- Sequential Acceleration: -50.0% bps
What is Centum Electronics Ltd's trailing twelve month (TTM) performance?
Centum Electronics Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹-32 Cr
- TTM PAT Growth: -6.7% YoY
- TTM Revenue: ₹1,000 Cr
- TTM Revenue Growth: +16.2% YoY
- TTM Operating Margin: 8.9%
Is Centum Electronics Ltd overvalued or undervalued?
Centum Electronics Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 82.3x
- Price-to-Book: 11.3x
What is Centum Electronics Ltd's current PE ratio?
Centum Electronics Ltd's current PE ratio is 82.3x.
- Current PE: 82.3x
- Market Cap: 4.6K Cr
- Dividend Yield: 0.19%
How does Centum Electronics Ltd's valuation compare to its history?
Centum Electronics Ltd's current PE is 82.3x.
- Current PE: 82.3x
- Valuation Assessment: Significantly Overvalued
What is Centum Electronics Ltd's price-to-book ratio?
Centum Electronics Ltd's price-to-book ratio is 11.3x.
- Price-to-Book (P/B): 11.3x
- Book Value per Share: ₹274
- Current Price: ₹3105
Is Centum Electronics Ltd a fundamentally strong company?
Centum Electronics Ltd is rated Weak with a fundamental score of 23.54/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +21.2% (10% weight)
- PAT Growth YoY: -226.3% (10% weight)
- PAT Growth QoQ: -1650.0% (10% weight)
- Margins stable (10% weight)
Is Centum Electronics Ltd debt free?
Centum Electronics Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹211 Cr
What is Centum Electronics Ltd's return on equity (ROE) and ROCE?
Centum Electronics Ltd's return ratios over recent years
- FY2023: ROCE 8.0%
- FY2024: ROCE 10.0%
- FY2025: ROCE 12.0%
Is Centum Electronics Ltd's cash flow positive?
Centum Electronics Ltd's operating cash flow is negative (FY2025).
- Cash from Operations (CFO): ₹-29 Cr
- Free Cash Flow (FCF): ₹-87 Cr
What is Centum Electronics Ltd's dividend yield?
Centum Electronics Ltd's current dividend yield is 0.19%.
- Dividend Yield: 0.19%
- Current Price: ₹3105
Who holds Centum Electronics Ltd shares — promoters, FII, DII?
Centum Electronics Ltd's shareholding pattern (Mar 2026)
- Promoters: 46.9%
- FII (Foreign): 2.4%
- DII (Domestic): 21.5%
- Public: 29.2%
Is promoter holding increasing or decreasing in Centum Electronics Ltd?
Centum Electronics Ltd's promoter holding has decreased recently.
- Current Promoter Holding: 46.9% (Mar 2026)
- Previous Quarter: 46.9% (Dec 2025)
- Change: -0.01% (decreasing — worth monitoring)
How long has Centum Electronics Ltd been outperforming Nifty 500?
Centum Electronics Ltd has been outperforming Nifty 500 for 11 consecutive weeks, indicating consistent outperformance.
Is Centum Electronics Ltd a new momentum entry or an established outperformer?
Centum Electronics Ltd is an established outperformer with 11 weeks of consecutive Nifty 500 outperformance.
What are the key risks in Centum Electronics Ltd?
Centum Electronics Ltd has 5 key risks worth monitoring
- [HIGH] Regulatory — International subsidiaries have higher cost structures (employee costs in Canada and France) with weak demand, leading to recurring losses at consolidated level
- [MEDIUM] Commodity — Supply chain dependency on components for defence/space products and competitive pricing in EMS segment can pressure margins
- [MEDIUM] Geopolitical — European defence spending cycles and weak industrial demand create structural headwind for Centum's ER&D and EMS businesses in Europe
- [LOW] Logistics — No specific supply chain disruption flagged in available sources
What did Centum Electronics Ltd's management say in the latest earnings call?
In Q3 FY26, Centum Electronics Ltd's management highlighted
- "Operating Profit stands at ₹-55.66 crore, reflecting QoQ decrease of 445.93 per cent from ₹16.09 crore — driven by impairment charges in overseas subs..."
- "Inventory build-up in H1 was strategic and order-backed, supporting upcoming delivery schedules in both, BTS and EMS [Risk (commodity): MEDIUM]"
- "Europe operations: Facing headwinds due to weak macro conditions and margin pressure; strategic alternatives being evaluated [Risk (geopolitical): ME..."
Is Centum Electronics Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Centum Electronics Ltd may be worth studying
- Currently showing mixed signals — monitor for clearer trend confirmation
What is the investment thesis for Centum Electronics Ltd?
Centum Electronics Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +21.2% YoY
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Regulatory
What is the future outlook for Centum Electronics Ltd?
Centum Electronics Ltd's forward outlook based on current data signals
- Earnings Trend: inflecting downward
- Revenue Trend: stable
- Margin Trend: stable
- Valuation: Significantly Overvalued
- Key Risk: Regulatory
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.