Centum Electron (CENTUM)
TurnaroundFairStock Score: 23/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹3,538.5 |
| Market Cap | ₹5,216.1 Cr |
| P/E Ratio | 51.82 |
| ROCE | 12.03% |
| ROE | -36.64% |
| Dividend Yield | 0.13% |
| Profit Growth | -17.98% |
| Debt/Equity | 0.38 |
| Sales Growth | 13.41% |
| Promoter Holding | 46.89% |
| 52-Week Range | ₹2,044.2 — ₹4,448.65 |
| Sector | Industrial Manufacturing |
| Book Value | ₹232.83 |
Strengths
- Sales growth of 21.39% shows healthy demand momentum.
- ROCE of 12.03% indicates decent operating efficiency despite the negative ROE.
- Piotroski F-Score of 7/9 suggests improving fundamental health.
- Promoter holding of 46.89% aligns management with minority shareholders.
- Debt-to-equity of 0.54 is moderate and manageable.
Concerns
- ROE is deeply negative at -36.64%, signalling poor shareholder returns.
- Latest quarter reported a net loss of ₹62 Cr on sales of ₹331 Cr.
- Valuation is stretched with P/E of 70.49 and P/B of 13.75.
- Dividend yield of only 0.23% offers negligible income support.
AI Analysis
Let me start with what I see. Centum Electron trades at ₹2,887 with a market cap of ₹3,922 Cr. The P/E of 70.49 tells me the market is paying a rich price for today's earnings, and the P/B of 13.75 against book value of ₹209.92 is far from a margin of safety. But Graham taught me to look deeper. Sales grew 21.39%, and reported profit growth of 423.59% sounds spectacular, yet the latest quarter shows a net loss of ₹62 Cr on sales of ₹331 Cr. That is a red flag. The return on equity is deeply negative at -36.64%, though ROCE is positive at 12.03%. This suggests operating profits are being eroded by financial costs or other items. Debt-to-equity of 0.54 is manageable, and promoter holding at 46.89% aligns interests. The Piotroski F-Score of 7/9 indicates improving fundamentals, which gives some hope. But I cannot ignore a negative ROE and a quarterly loss. Is this a cyclical trough or a value trap? The PEG of 0.32 looks cheap only if the 423% profit growth is sustainable, which seems unlikely from a loss-making quarter. As a value investor, I demand a margin of safety. At 70 times earnings, I find none. This is a business to watch, not to buy at this price. I'd wait for evidence of consistent profitability before committing capital.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer