Prashant Jain-backed defence stock surges 10% after returning to profitability in Q4

Shares of Centum Electronics Ltd. surged 10% on Friday, May 23, after returning to profitability in the March quarter.

Centum Electronics reported a net profit of ₹22 crore during the March quarter, compared to a net loss of ₹7 crore during the same quarter last year.

Revenue for the quarter increased by 24.2% on a year-on-year basis to ₹369 crore. Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) more than doubled from last year to ₹42 crore.

EBITDA margin for the company expanded by over 500 basis points to 11.3% from 6.1% last year.

The company's order book at the end of the March quarter stood at ₹1,861 crore, with Defence and Aerospace contributing to 51% of the total order book.

Centum Electronics is present in missile control & guidance subsystems, radar control subsystems, tank electronics, electronic warfare payloads, satellite subsystems.

Among key investors in the company include Prashant Jain's 3P India Equity Fund, where two funds cumulatively have close to 5.5% stake in the company, as of March 31, 2025.

Over 17,000 small shareholders, or those with an authorised share capital of up to ₹2 lakh, have a 11.76% stake in the company.

Shares of Centum Electronics are trading 10% higher at ₹2,264. The stock has risen 33% in the last one month, has a market capitalisation of over ₹3,000 crore, and has gained over 900% over the last five years.