Centum electronics is a Bagalore based company promoted by
Mr Apparao V. Mallavaravu and engaged in the business of
designing and manufacturing of electronic systems,sub-systems
and components.The Singapore based multi national EMS giant
Flextronics is also holding about 5% stake in Centum Electronics.
Recently company merged another company of the same
management into itself which was in the business of Electronic
manufacturing Services (EMS) and Printed Circuit Board
Assembly.The new entity’s products are used in industries
like Space, Defense, Aerospace,Communications and
Automotive.It also have another subsidiary in the name
of Centum-Rakon which
is a joint venture between Rakon Limited,New Zealand .
Centum Rakon is one of the largest manufacturer of frequency
control products in India . Centum’s main business includes
the manufacturing of Signal Conditioners, Multiplexers, Relay
Drivers, Power Processing Units, Control Electronics Modules,
Sensor Electronics Modules and Crystal Oscillators including
high-end SPXO, VCXO, TCXO and OCXO . In India ,company is
expecting more orders for their products and a bright future
due to the increasing participation of private sector in Defense
arena . Interest of Flectronics in this company is helping it to tap
the international opportunities . Recently company got some big
orders from Alcatel and Ericsson ,and it is planning another
factory in Bangalore to meet the improving order flow from
overseas. Flextronics is reportedly planning to invest another
Rs.25 Cr in Centum Electronics to increase the capacity .
For the nine month ended December quarter , Centum posted
a turnover of Rs.123 Cr , net profit of Rs. 3 Cr and an EPS of
Rs.2.25. Recently company announced a sourcing agreement
with L-3 communication group for their aviation products division.
Company is expected to perform well due to the revival
in western economies ,increasing interest of private sector
in Defense and Space in India, new commitments of
Flextronics and new alliances with global leaders in defense and
space arena .Long term investors may consider a BUY at CMP of Rs.88/-
Hello
ReplyDeleteWe want to buy carin india for long term
please give me ur opinion on it.
Amit
Hi Valuepick,
ReplyDeleteDo you think India will open up defence sector for private player..i guess they should looks like lot of noises on increase in FDI in defence sector?
Regards,
Vikas Karunakaran
Dear Amit
ReplyDeleteI think your comment is about Cairn India . In my opinion, Govt may insist some extra covenants on cairn while giving permission for the takeover of cairn by vedanta .So better to wait for a clarity in this matter. If a change of management is possible without any extra conditions ,it is really a good BUY
Hi Valuepick,
ReplyDeleteCan u please give us an insight of this company as this Co formerly ( SOlectron centum & Centum Electornics -- demerge & remerge as well as change of name again n again) either ways how good is it in terms
Hi,
ReplyDeleteCan u pls include the fact that the name has been changed thrice centum to solectron & then demerge to ( solectron ems & centum ) & then remerge back to centum
Stock recommended after all these corporate developments
DeleteNice post. Its always better to think before investing money in stock market. Investment should be done in share market but with the aim to increase our funds so speculation should not be the mode of investment. Investors should know why they are investing money in any stock.
ReplyDeleteRegards
are you still tracking this company? shouldn't this do well now that the government has announced intention of FDI in the defense sector?
ReplyDelete