This stock surges 216% in 6 months, and has Chandrayaan-3 connection

In a major breakthrough for India, Chandrayaan-3 successfully landed on the Moon's southern pole on Wednesday, a rare feat which has not been achieved by developed nations such as U.S., Russia, and China. The success of Chandrayaan-3 mission has put the spotlight on a host of listed companies such as L&T, HAL, BHEL, Centum Electronics, MTAR Technologies, and others, which contributed to India’s third moon mission in its various stages.

Centum Electronics, one of the largest electronics system design and manufacturing (ESDM) companies in India, was among the key suppliers that have potentially contributed to success of ISRO’s lunar mission. Centum was a key electronics industry partner for Indian Space Research Organisation (ISRO) and was involved in the design, development, and productionisation of electronic modules, subsystems and systems for multiple applications in satellites and launch vehicles.

Boosted by Chandrayaan-3 success, shares of Centum Electronics gained as much as 19.7% to hit a fresh all-time high of ₹1,970 in intraday trade on the BSE today. The smallcap stock has been rising for the last three sessions and gained more than 40% during the same period.

The stock has turned multibagger in the last one year, delivering more than 300% returns to its shareholder during this period. In the calendar year 2023, the counter has surged 154%, while it rallied 215% in six months. In the past one month, the stock rises 30%, while it added 27% in a week.

At the current price level, Centum share price is up 374% from its 52-week low of 415 touched on August 29, 2023. The share price has given return of nearly 3,000% since its listing on the stock exchanges in 2003.

Founded in 1994 in Bangalore, Centum offers an entire spectrum of design services and manufacturing of systems, subsystems for mission critical products in defence, space, aerospace, industrial, transportation and medical sectors. It has three businesses -- Electronic Manufacturing Services (EMS) segment, Engineering R&D (ER&D) Services, and Build-To-Specification (BTS).  

For the June quarter of FY24, the company posted a consolidated profit after tax at ₹1.45 crore, up 156% against the same period last year and down 94% on a quarter-on-quarter basis. The consolidated revenue from operations grew 18% to ₹249.09 crore in Q1FY24, while it dropped 22% on QoQ basis.

As per the company, the consolidated revenue increased YoY mainly due to an increase in EMS business, while it fell sequentially due to higher revenue of BTS in the previous quarter.

On the operational front, EBITDA increased 57% YoY to ₹17.9 crore, while it fell 64% QoQ from ₹50.3 crore in the March quarter of FY23. The margins EBITDA increased from 5% in Q1 FY23 to 7% in Q1 FY24 due to improved revenues in the EMS business.

During the quarter under review, order book remained flat at previous quarter level ₹1,542 crore. However, the outlook for the order book is strong for the year with increasing opportunities in the pipeline, as per the company. 

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