EMS stock jumps 13% after launching QIP and announcing expansion plans

EMS stock specializing in electronics system design and manufacturing is raising funds through a qualified institutional placement (QIP) to enhance its capabilities and offer comprehensive solutions for the armed forces.

Stock Price Movement

Centum Electronics Limited has a market capitalization of ₹1548.58 Crs, with its stock reaching an intraday high of ₹1358 per share, up 12.23% percent from the previous close of ₹1210. The stock has since retreated and is currently trading at ₹1265.9 per share.

What Happened

Centum Electronics has opened its Qualified Institutions Placement (QIP) on March 10, 2025, with a floor price of ₹1,219.65 per share, determined as per the SEBI pricing formula. The company has the option to offer a discount of up to 5% on the floor price. The final issue price will be determined in consultation with the book running lead manager overseeing the placement.

It also stated its intention to deliver complete systems to the armed services and is currently executing large projects. According to an exchange filing, it is actively pursuing major system-level opportunities in collaboration with its technology partners.

About the company

Centum Electronics Limited, founded in 1993 in Bangalore, India, is a diversified electronics company specializing in the design and manufacturing of electronic systems. The company operates across various sectors, including aerospace, defense, space, communications, industry and energy, medical, transportation, and automotive. The company provides various products and services categorized under Design Engineering, Manufacturing Services and Build to Specification (Company Website)

Also read: Real estate stock jumps over 4% after promoter increases stake in the Co.

Order Book

The company has an order book worth Rs 9,460.99 Million in the Build to Specification (BTS) segment, Rs 1,949.15 Million in the Engineering Research & Development segment (ER&D) and  Rs 7,202.85 Million in the Electronics Manufacturing Services segment (EMS), totalling to about Rs 18,612.99 Million

Performance

The ROE of the company is -1.28 percent, The ROCE of the company is 9 percent, it has negative ROA of 2.64 percent, the Debt to Equity Ratio of the company is 1.32. (Trade brains portal)

Financials

Compared to previous year Q3 the total revenue of the company in the recent quarterly result (Q3 FY-25) saw a decrease of 5.22 percent from Rs 299.27 Cr to Rs 288.66 Cr. The Operating profit of the company too drastically fell by 33 percent from Rs 28.9 Cr to Rs 19.36 Cr. The company had a net loss of – Rs 19.3 Cr from a profit of Rs 7.25 Cr. (Trade Brains Portal)

Future Outlook

The company is expected to move up the value chain by shifting from component manufacturing to delivering complete systems for defense and aerospace. The funds it shall raise will support large-scale projects, R&D expansion, and advanced manufacturing, strengthening its position in high-tech electronics. With improved capabilities, Centum aims to drive revenue growth, enhance profitability, and compete for larger contracts in both domestic and global markets.

Written by – Varun Nair

Disclaimer

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