Centum Electronics is a Bangalore 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 giantFlextronics is also holding about 5% stake in Centum Electronics. Recently company merged another company of the samemanagement 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 whichis a joint venture between Rakon Limited,New Zealand .Centum Rakon is one of the largest manufacturer of frequencycontrol products in India . Centum’s main business includesthe manufacturing of Signal Conditioners, Multiplexers, RelayDrivers, Power Processing Units, Control Electronics Modules,Sensor Electronics Modules and Crystal Oscillators includinghigh-end SPXO, VCXO, TCXO and OCXO . In India ,company isexpecting more orders for their products and a bright futuredue to the increasing participation of private sector in Defensearena . Interest of Flectronics in this company is helping it to tapthe international opportunities . Recently company got some bigorders from Alcatel and Ericsson ,and it is planning anotherfactory in Bangalore to meet the improving order flow fromoverseas. Flextronics is reportedly planning to invest anotherRs.25 Cr in Centum Electronics to increase the capacity .For the nine month ended December quarter , Centum posteda turnover of Rs.123 Cr , net profit of Rs. 3 Cr and an EPS ofRs.2.25. Recently company announced a sourcing agreementwith L-3 communication group for their aviation products division.Company is expected to perform well due to the revivalin western economies , increasing interest of private sectorin Defense and Space in India, new commitments ofFlextronics and new alliances with global leaders in defense andspace arena .Long term investors may consider a BUY at CMP of Rs.94/-
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