Centum Electronics shares hit record high on inking MoU with BEL

Centum Electronics shares hit a record high after it signed an MoU with BEL for strategic collaboration in defence electronics

Don't want to miss the best from Business Standard?

Shares of Centum Electronics rose over 6 per cent to hit a fresh high on Wednesday after it signed a Memorandum of Understanding (MoU) with Bharat Electronics (BEL) for strategic collaboration across the defence electronics domain. 

 

The industrial products maker's stock rose as much as 6.19 per cent during the day to a record high of ₹2,840 per share. The stock pared gains to trade 3.4 per cent higher at ₹2,765.5 apiece, compared to a 0.25 per cent advance in Nifty 50 as of 12:36 PM. 

 

Shares of the company rose for the fourth straight session, gaining nearly 13 per cent in the process. The counter has risen 34 per cent this year, compared to a 6 per cent advance in the benchmark Nifty 50. Centum Electronics has a total market capitalisation of ₹4,063.81 crore.  Track LIVE Stock Market Updates Here

Centum Electronics signs MoU with BEL 

The company signed an MoU with BEL to explore strategic collaboration in defence electronics, it said in an exchange filing on Wednesday. The partnership will focus on key areas such as electronic warfare systems, radar systems, and secure military communication systems. 

 

The MoU aims to leverage the complementary strengths of both companies in the design, development, and manufacturing of advanced defence electronics solutions for the Indian Armed Forces and allied markets.

 

Centum clarified that the agreement currently represents a strategic intent and does not have any immediate financial impact. The company said it will make further disclosures as and when specific business opportunities and material contracts arise from this collaboration.

 

Total order book at the end of Q4FY25 stood at ₹1,736.4 crore. Standalone order book surged to ₹1,329.7 crore (vs ₹1,117.8 crore in FY24), led by strong BTS order inflow. New EMS customers have advanced to the qualification and NPI stage, positioning the business for strong revenue growth in FY26, the company had said earlier. 

About Centum Electronics

Centum Electronics is in designing and manufacturing electronic systems and manufactures high-end electronic modules, subsystems and systems used in the aerospace, defence, and industrial electronics sectors.

 

The company has delivered mission-critical electronics on almost all satellite programs of ISRO, including the ambitious Chandrayaan and Mangalyaan projects and also delivered 300 to 500 components for almost every Indian space mission. The clientele base consists of reputed defence segment companies such as Space Application Centre, ISRO, DRDO, ABB, Thales, and RAFAEL, among others.