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DAM Capital Predicts 22% Rally for Centum Electronics Stock: Here's Why
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CNBC TV18•23-09-2026, 09:06
DAM Capital Predicts 22% Rally for Centum Electronics Stock: Here's Why
- •DAM Capital initiated coverage on Centum Electronics with a "Buy" rating and a target price of –6,000, implying a 22% upside.
- •The brokerage firm highlights Centum's strong position in core electronics manufacturing and expansion into high-growth sectors like defense and semiconductors.
- •Centum's focus on build-to-spec and electronics manufacturing services (BTS / EMS) and high barriers to entry, with 70% sole-supplier contracts, are key strengths.
- •The company projects 25%-30% annual revenue growth and DAM Capital expects 37% CAGR in EBITDA (FY26-FY29) and 38% CAGR in earnings.
- •Centum shares offer a strong growth runway with a 38% earnings CAGR and over 20% Return on Capital Employed (RoCE) through FY27-29.
Key Questions Answered
DAM Capital initiated coverage on Centum Electronics with a "Buy" rating and set a target price of ₹6,000 per share, which implies a 22% upside potential from Tuesday's closing levels.
Centum Electronics divested its overseas business and took a write-off of ₹203 crore as part of its efforts to sharpen its focus on the domestic market and core electronics manufacturing services.
Centum Electronics has guided for a projected annual revenue growth of 25%-30% over the next few years, while DAM Capital expects EBITDA to grow at a 37% CAGR between FY26 and FY29.
