This defence stock, which is engaged in offering a spectrum of design services and the manufacturing of systems, and subsystems for mission-critical products in sectors like Defence, Aerospace, Space, Transportation, Industrial, and Medical, surged upto 4 percent after 3P India Equity increased stake to 5.47 percent.
Share Price Movement
With a market capitalization of Rs. 1,708.89 Crores, the shares of Centum Electronics Limited were up by 3.9 percent in the day’s trade touching a day’s high of Rs. 1,332.55 per share.
The stock reiterated from the day’s high and was trading at Rs. 1,325.05, which is 3.37 percent higher than the previous closing price of Rs. 1,281.85 apiece. It has delivered a negative return of 20 percent, which has underperformed the Nifty Index in the past year.
What Happened
The company’s stock was in focus after 3P India Equity Fund bought 5,17,241 equity shares comprising 3.52 percent through Qualified Institutional Placement (QIP) on March 13th 2025.
3P India has bought a stake in its 3P India Equity Fund 1 and 3P India Equity Fund 1M scheme. Earlier they had 2,87,821 equity shares of 2.23 percent stake and after the recent acquisition, their stake rose to 5.47 percent which constitutes 8,05,062 equity shares. Prashant Jain is the founder and the Chief Investment Officer (CIO) of 3P Investment Managers out of which 3P India Equity Fund is managed.
Q3FY25 Financial Highlights
Its financial results for the quarter ending December 2024, the consolidated revenue from operations has declined by 5.7 percent year on year from Rs. 298 crores in Q3FY24 to Rs. 281 crores in Q3FY25 and increased by 8.07 percent quarter on quarter from Rs. 260 crores in Q2FY25.
The company turned from a net profit of Rs. 7 crore in Q3FY24 to a loss of Rs. 19 crore in Q3FY25. Quarterly, the net loss stood at Rs. 0.31 crore.
Business Segment
The company recognizes its revenue from operations under Electronics System Design and Manufacturing (ESDM) as its sole segment.
The Electronic Manufacturing Services (EMS) division has 49.07 percent of Gross Billings, followed by 21.03 percent from Engineering R&D Services (ER&D) and the remaining 29.9 percent from the Build to Specification (BTS) division as on or for nine months ended 31st December 2024
Company Overview & Order Book
Centum Electronics, founded in 1993 and headquartered in Bangalore, India, specializes in electronics design, manufacturing, and system integration. Serving aerospace, defence, medical, and industrial sectors globally it operates in six countries. They are one of the key ISRO partners as well.
The order book stood at ~Rs. 1,861.29 crore as on 21st February 2025. Out of which 50.83 percent comprises build-to-specification (BTS), 38.7 percent from Electronic Manufacturing Services (EMS), and the remaining 10.47 percent from Engineering R&D Services (ER&D).
Written By Santhosh S
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