CARE reviews ratings of Centum Electronics Limited

CARE Ratings Limited has reviewed the credit ratings of Centum Electronics Limited as detailed below:

Total Bank Facilities Rated - Rs.355.7 Crores

Long Term Bank Facilities - CARE BBB; Stable (Triple B; Outlook: Stable)

Long Term / Short Term Bank Facilities - CARE BBB; Stable/CARE A3+ (Triple B; Outlook: Stable/ A Three Plus)

The rating assigned to the bank facilities of Centum Electronics Limited (CEL) takes into account long track of operations of the company and extensive experience of the promoters in the industry which has helped the company in establishing relationship with reputed clientele from various industries ensuring repeated orders. The rating also positively takes note of satisfactory order book position, improvement in operating cycle with realisation of significant receivables during FY21 and above average financial risk profile marked by stable income and satisfactory gearing levels witnessed after weak performance in FY18. These rating strengths are partially offset by its working capital-intensive nature of operations which involves dealing with govt. bodies. The rating also takes note of investment in loss making subsidiary, Centum Adetel Group S.A. (CAG)turnaround of which may take more than envisaged time due to Covid-19. Company's ability to turn its subsidiary into self-sustainable operations will be a key monitorable. Further, company's ability to manage its operations under current scenario of shortage of semiconductors would also be important from credit perspective.

Shares of CENTUM ELECTRONICS LTD. was last trading in BSE at Rs.397.4 as compared to the previous close of Rs. 390.7. The total number of shares traded during the day was 5699 in over 172 trades.

The stock hit an intraday high of Rs. 402.95 and intraday low of 393.9. The net turnover during the day was Rs. 2263652.

Source : Equity Bulls

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