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/-
