Centenial Surgical Suture Ltd.

Healthcare — Medical Instruments & Supplies · BSE

₹71.25₹0.00 (0.00%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Centenial Surgical Suture Ltd. — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Centenial Surgical Suture Ltd., a medical device company, engages in the manufacture and sale of surgical sutures and other medical devices in India and internationally.

IndustryMedical Instruments & Supplies

SectorHealthcare

Employees266

Annual revenue₹54 Cr

How does it make money?

Turns over ₹54 Cr a year. Of every ₹100 of sales, about ₹-4 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 266 employees supports ₹20.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹20.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, CIPLA LTD, DR. REDDY S LABORATORIES, APOLLO HOSPITALS ENTER. L. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 2.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +2% while net margin moved -343% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+2%

Margin effect-343%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 10.6 points over the period

Quality vs. Valuation

Company Quality

37/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

54/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

6.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 6.6% to 9.8% over 3 years.
Debt is being paid down
Total debt is down 29% over 3 years.
Cash generation is improving
Free cash flow is up 345% over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 2.9% to -7.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 5.8% to 2.6% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 0.4x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹2 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 0.6x to 0.4x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 6.6% to 9.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 29% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 0.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 2.9% to -7.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 8%✓ 9.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 0.4x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 0.7% CAGR
Latest reported year was 18.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹5 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 3 neutral · 5 weak

Market Cap

₹26 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.91x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-3.96

Loss-making

Negative earnings per share — the business is losing money

ROE

-7.7%

Weak

Weak capital efficiency

ROCE

2.6%

Weak

Low return on total capital employed

Debt/Equity

1.06x

Moderate

Moderate leverage

Revenue Growth (YoY)

18.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-50.6%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹5 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

8.2%

Average

Average margins

Net Margin

-2.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.90

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.20

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

92.9 / 91.8

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

8.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹53 Cr	₹51 Cr	₹54 Cr	₹54 Cr	+0.7%
EBITDA	₹3 Cr	₹4 Cr	₹6 Cr	₹5 Cr	+14.9%
EBITDA Margin	6.6%	7.0%	11.9%	9.8%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	-₹1 Cr	-₹2 Cr	—
EPS	₹2.43	₹3.11	₹-4.01	₹-6.04	—
ROE	2.9%	3.5%	-4.8%	-7.7%	—
ROCE	5.8%	4.7%	4.0%	2.6%	—
Total Debt	₹15 Cr	₹28 Cr	₹34 Cr	₹11 Cr	-10.6%
Free Cash Flow	₹1 Cr	-₹1 Cr	₹6 Cr	₹5 Cr	+64.5%

🟡 Revenue has been broadly flat over 3 years (0.7% a year).

🟢 EBITDA has grown at 14.9% a year over 3 years.

🟢 EBITDA Margin has risen from 6.6% to 9.8% over 3 years (+3.2 pts).

🔴 PAT (Net Profit) has turned negative, from ₹1 Cr to -₹2 Cr.

🔴 EPS has turned negative, from ₹2.43 to ₹-6.04.

🔴 ROE has fallen from 2.9% to -7.7% over 3 years (-10.6 pts).

🔴 ROCE has fallen from 5.8% to 2.6% over 3 years (-3.2 pts).

🟢 Total Debt has shrunk at 10.6% a year over 3 years.

🟢 Free Cash Flow has grown at 64.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹80 Cr

Total Liabilities

₹51 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹7 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.1%

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
CIPLA LTD	31.8x	9.8%
DR. REDDY S LABORATORIES	31.0x	8.8%
APOLLO HOSPITALS ENTER. L	54.3x	22.0%

Recent News

1 mixed5 general

Five Consecutive Losses Push Centenial Surgical Suture Ltd to a New 52-Week Low

MarketsMojo, 16 Oct

Centenial Surgical Suture Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Centenial Surgical Suture discloses AGM voting results and scrutinizer report

scanx.trade, 28 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Centenial Surgical Suture Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

GKB Stock Price and Chart — NSE:GKB

TradingView, 18 Aug

Centenial Surgical Suture Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 01 Sept

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑