Centum Electron (CENTUM)

FairStock Score: 23/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer