Centum Electronics Ltd

About the Company:

Centum Electronics Limited  designs, manufactures and also exports electronic products.It also provides design services to its customers.These include systems, subsystems, and modules,besides complex electronic components.

Company is focused on Strategic Electronics, Communication, Industrial,and Medical industry segments.

Centum serves customers engaged in mission critical solutions with advanced tailor-made technologies. It serves the Strategic Electronics (Space, Defense and Aerospace), Industrial, Transportation, Communications, and Medical markets.

Company inaugurated a brand new state-of-the-art facility at the Aerospace park at Devanahalli in Bangalore. It was inaugurated by the then Hon’ble Defence Minister, Shri. Manohar Parrikar in Feb 2017. This is a world class facility of approximately 150,000 sq ft on a 6 acre plot.

With extensive design & development expertise and leading-edge technologies Centum is now a strategic supplier to many Fortune 500 companies.

Company has been steadily increasing its product and service range in these chosen industry segments and in the geographies serves, which are North America, Europe, India and rest of Asia.

Company Caters to the Following Sectors:

• Aerospace.
• Defence.
• Industrial & Energy.
• Communication.
• Transportation.
• Automotive.

Subsidiaries of the Company:

Centum Rakon:

Centum Rakon manufactures Frequency Control Products (FCP) a critical component in the Telecom Infrastructure business segment. The subsidiary has been delivering high quality products at competitive prices, because of which they have seen a significant increase in the market share.

Positives for the Company:

• The Indian Defense Budget is increasing year on year both in terms of the total value and also as a percentage of the budget allocation itself.
• The Defense Procurement Policy (DPP) of Government of India has created a huge opportunity for Indian industries.
• With the renewed focus by Government of India in the area of manufacturing “Make in India” and also creating an environment of “Ease of Doing Business in India” we foresee the Indian manufacturing sector (including design, wherever applicable) to see high growth rates in the coming years.
• As per the Defence Procurement Procedure 2016 (DPP 2016) a new category called as Indian Indigenously Designed Developed and Manufactured (IDDM) procurement category has been introduced in which it has increased procurement from 30% to 40% in the ‘Buy (Indian)’ Category in order to enhance the  participation of local players in procurement and thereby promote Make in India.
• Till recently, the indigenous defense manufacturing was restricted to Defense Public Sector Units and Ordnance Factories only. Due to increasing requirements, the Defense PSUs and the Ordnance Factories have a huge order book and have started to actively work with the private industry to fulfill the requirements.
• Until recently ISRO manufactured the systems and subsystems in-house or imported them. However, due to the increased requirements coupled with Govt.’s focus on self reliance ISRO, is actively involved in developing the private industry in meeting their increasing requirements. This clearly sets the tone and directions ISRO wants to move, which will be great opportunity for the private sector.

Current Market price is around Rs.663 and Marketcap is around Rs.830 crores.

Stock may give good return in the Long Term.

Disclaimer: “Markets Guruji Team” may have entered the stock at Significantly lower rates as compared to the Current Market Price (CMP) and we may exit the stock at any point of time without prior notice. So take advise from your Financial Advisor before Investing your hard earned money. We have made this Article for Education /Information Purpose only & We don’t accept any responsibility for any Loss/ Profit arising from your decisions)

Knowledge Corner: (Click on the Link)