Mehabe score: 5 G Factor: 3 Piotski Score: 8 The stock has a rating SELL. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 8.
Description
Orient Electric is one of the leading consumer electrical brands in India with a diverse portfolio of fans, lighting, home appliances and switch-gears. The company takes pride in its R&D capabilities, spirit of continuous innovation and commitment to manufacturing cutting-edge lifestyle electrical products that meet the needs and expectations of modern consumers. Site:ORIENTELEC Main Symbol:ORIENTELEC
Stock trades at 368.0, below its 50dma 368.31. However it is trading above its 200dma 332.79. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 368.31.
The 52 week high is at 408.20 and the 52week low is at 228.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
– has a good return on equity (ROE) track record: 3 Years ROE 26.25%
– has been maintaining a healthy dividend payout of 32.37%
Weakness
– Stock is trading at 16.07 times its book value
Competition
– The industry trades at a mean P/E of 48.4x. IFB Industries trades at the industry’s max P/E of 87.64x. ORIENTELEC trades at a P/E of 50.6x
– Industry’s mean G-Factor is 2.6 while the mean Piotski score is 9.0. ORIENTELEC has a G-Factor of 3 and Piotski scoreof 8.
– Average 1 month return for industry is 2.3%. The max 1- month return was given by Symphony: a return of 7.1 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 678.0 cr compared to Rs 618.0 cr for period ended Dec 2020, a rise of 9.7% .
vis-vis 84.0 for period ended Dec 2020 .
Operating Margins contracted -385.8 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 66.0 cr for period ended Dec 2021 and operating profit margin at 9.7 % for same period.
The EPS for quarter ended Dec 2021 is Rs 1.79 compared to Rs 1.64 for previous quarter ended Sep 2021 and Rs 2.45 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2497.0 cr for period ended TTM vis-vis sales of Rs 2033.0 cr for the period ended Mar 2021, a healthy growth of 18.6%. The 3 year sales cagr stood at 10.2%.
Operating margins shrank to 10.0% for period ended TTM vis-vis 11.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 141.0 cr for period ended TTM vis-vis sales of Rs 120.0 cr for the period ended Mar 2021, rising 14.9%.
Company recorded a healthy Net Profit CAGR of 26.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 427.0 cr for period ended Mar 2021 vis-vis Rs 129.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 59% on a 1 Year basis vis-vis a return of 34% over the last 3 Years. – The compounded sales growth on a TTM bassis is 46% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is 157% vis-vis a compounded profit growth of 22% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 8.99% vis-vis 8.74% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 27.55% vis-vis 28.96% for Sep 2021
Conclusion
– has reduced debt.
– is expected to give good quarter
– has a good return on equity (ROE) track record: 3 Years ROE 26.25%
– has been maintaining a healthy dividend payout of 32.37% – Stock is trading at 16.07 times its book value
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 368.31 and is trading at 368.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
