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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Orient Electric Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:41 pm

Market Cap 4,797 Cr.
Current Price 225
High / Low297/189
Stock P/E77.5
Book Value 30.5
Dividend Yield0.67 %
ROCE14.2 %
ROE10.3 %
Face Value 1.00
PEG Ratio40.38

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Orient Electric Ltd

Competitors of Orient Electric Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hawkins Cookers Ltd 4,512 Cr. 8,5299,099/5,81040.0 6221.41 %44.5 %36.0 % 10.0
Harsha Engineers International Ltd 4,355 Cr. 478614/36031.4 1430.21 %13.4 %10.6 % 10.0
Gorani Industries Ltd 56.2 Cr. 105160/86.877.1 23.50.00 %12.2 %11.5 % 10.0
Eureka Forbes Ltd 10,906 Cr. 568644/39783.7 2220.00 %3.46 %2.45 % 10.0
V-Guard Industries Ltd 17,951 Cr. 414577/28369.1 42.70.34 %16.1 %13.8 % 1.00
Industry Average10,976.60 Cr1,724.5573.95189.380.41%14.59%11.60%6.09

All Competitor Stocks of Orient Electric Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales802422594678753622511739658706567752788
Expenses705400532612673583499684612662546703757
Operating Profit97226266813812554644214931
OPM %12%5%10%10%11%6%2%7%7%6%4%7%4%
Other Income41113569632245
Interest5555655666557
Depreciation11121212121313141414141515
Profit before tax847475165250443327233313
Tax %26%26%25%25%25%25%315%25%25%26%21%26%5%
Net Profit63535384919-0332520182413
EPS in Rs2.950.241.641.792.300.89-0.011.531.160.920.861.140.60

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2161,6001,8642,0622,0332,4482,5292,682
Expenses1931,4611,7211,8851,8132,2172,3782,522
Operating Profit24139143177220231151160
OPM %11%9%8%9%11%9%6%6%
Other Income1384662736
Interest324232621202223
Depreciation220234043475457
Profit before tax2098105114162170102116
Tax %41%35%34%31%26%25%26%
Net Profit126469791201277687
EPS in Rs3.023.273.715.645.973.564.08
Dividend Payout %0%33%31%31%35%34%42%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)433.33%7.81%14.49%51.90%5.83%-40.16%
Change in YoY Net Profit Growth (%)0.00%-425.52%6.68%37.41%-46.07%-45.99%

Orient Electric Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 6 years from 2017-2018 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:9%
3 Years:11%
TTM:11%
Compounded Profit Growth
10 Years:%
5 Years:-2%
3 Years:-19%
TTM:-23%
Stock Price CAGR
10 Years:%
5 Years:4%
3 Years:-15%
1 Year:3%
Return on Equity
10 Years:%
5 Years:19%
3 Years:16%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:56 pm

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital0.052121212121212121
Reserves192242285338434520563618629
Borrowings211186135155616897112102
Other Liabilities344359447446645579583700651
Total Liabilities7478088899601,1621,1871,2651,4511,403
Fixed Assets0106117190186212226236462
CWIP054101138622511
Investments00000003714
Other Assets747698768760965972953953916
Total Assets7478088899601,1621,1871,2651,4511,403

Reserves and Borrowings Chart

Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +599113212942711190118
Cash from Investing Activity +4-22-31-51-15178-110-171
Cash from Financing Activity +-40-62-100-103-144-80-66-46
Net Cash Flow2371-241331014-98

Free Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-187.00-47.008.0022.00159.00163.0054.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days60988776464585160
Inventory Days51673767464675759
Days Payable1,46297101861339391101
Cash Conversion Cycle-337655253-6331817
Working Capital Days1,0165849482302019
ROCE %29%29%29%35%34%19%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters38.52%38.52%38.52%38.52%38.42%38.42%38.41%38.30%38.30%38.30%38.30%38.30%
FIIs8.74%8.99%8.26%6.16%6.12%6.13%5.75%5.50%5.69%5.94%6.52%6.56%
DIIs23.78%24.94%26.30%29.08%27.02%26.66%27.60%27.87%29.98%29.23%27.19%27.73%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.05%
Public28.96%27.55%26.92%26.24%28.43%28.79%28.23%28.32%26.04%26.54%27.97%27.36%
No. of Shareholders67,18373,78880,20877,76288,89583,28780,01683,45587,59894,6751,02,70891,121

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Mirae Asset Focused Fund10,496,7382.5227.316,732,6922024-11-2055.91%
Nippon India Small Cap Fund9,974,2280.53215.996,732,6922024-11-2048.15%
Axis Small Cap Fund6,732,6920.81145.86,732,6922024-11-200%
Kotak Small Cap Fund - Regular Plan5,808,5270.94125.786,732,6922024-11-20-13.73%
ICICI Prudential Smallcap Fund4,750,5041.56102.876,732,6922024-11-20-29.44%
ICICI Prudential Multicap Fund4,270,4000.9792.486,732,6922024-11-20-36.57%
Nippon India Growth Fund3,810,3640.3982.516,732,6922024-11-20-43.41%
ICICI Prudential Housing Opportunities Fund2,122,3541.8645.966,732,6922024-11-20-68.48%
Aditya Birla Sun Life Small Cap Fund2,113,9820.9145.786,732,6922024-11-20-68.6%
Kotak Focused Equity Fund1,729,3091.337.456,732,6922024-11-20-74.31%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)3.533.575.975.643.71
Diluted EPS (Rs.)3.533.565.955.633.70
Cash EPS (Rs.)6.296.088.197.685.60
Book Value[Excl.RevalReserv]/Share (Rs.)29.9427.4725.5121.4716.94
Book Value[Incl.RevalReserv]/Share (Rs.)29.9427.4725.5121.4716.94
Dividend / Share (Rs.)1.501.502.002.001.15
Revenue From Operations / Share (Rs.)131.78118.85115.3895.7997.16
PBDIT / Share (Rs.)7.498.3511.1710.648.51
PBIT / Share (Rs.)4.735.838.968.616.62
PBT / Share (Rs.)4.514.798.007.635.38
Net Profit / Share (Rs.)3.533.565.975.643.70
PBDIT Margin (%)5.687.029.6811.108.75
PBIT Margin (%)3.584.907.768.986.80
PBT Margin (%)3.424.036.937.965.54
Net Profit Margin (%)2.672.995.175.893.81
Return on Networth / Equity (%)11.7812.9723.3926.2721.87
Return on Capital Employeed (%)13.7518.2130.8935.6132.65
Return On Assets (%)5.185.9910.6610.308.18
Total Debt / Equity (X)0.030.010.020.030.26
Asset Turnover Ratio (%)2.072.062.081.922.23
Current Ratio (X)1.281.491.561.371.32
Quick Ratio (X)0.841.000.990.990.78
Inventory Turnover Ratio (X)2.762.502.932.452.81
Dividend Payout Ratio (NP) (%)42.5156.0033.4922.1431.03
Dividend Payout Ratio (CP) (%)23.8232.8424.4116.2820.54
Earning Retention Ratio (%)57.4944.0066.5177.8668.97
Cash Earning Retention Ratio (%)76.1867.1675.5983.7279.46
Interest Coverage Ratio (X)6.878.0211.6910.896.91
Interest Coverage Ratio (Post Tax) (X)3.434.427.246.784.01
Enterprise Value (Cr.)4071.035598.936689.616358.204279.23
EV / Net Operating Revenue (X)1.452.212.733.132.08
EV / EBITDA (X)25.4731.5328.2128.1623.71
MarketCap / Net Operating Revenue (X)1.462.272.793.252.03
Retention Ratios (%)57.4843.9966.5077.8568.96
Price / BV (X)6.449.8412.6114.4911.66
Price / Net Operating Revenue (X)1.462.272.793.252.03
EarningsYield0.010.010.010.010.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Orient Electric Ltd as of November 21, 2024 is: 245.10

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Orient Electric Ltd is Undervalued by 8.93% compared to the current share price 225.00

Intrinsic Value of Orient Electric Ltd as of November 21, 2024 is: 249.80

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Orient Electric Ltd is Undervalued by 11.02% compared to the current share price 225.00

Last 5 Year EPS CAGR: 1.92%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 23.63%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 28.38, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -13.13, which is a positive sign.
  4. The company has higher reserves (424.56 cr) compared to borrowings (125.22 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (28.50 cr) and profit (110.88 cr) over the years.

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Orient Electric Ltd:
      1. Net Profit Margin: 2.67%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 13.75% (Industry Average ROCE: 14.59%)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ROE%: 11.78% (Industry Average ROE: 11.6%)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 3.43
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 0.84
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. Stock P/E: 77.5 (Industry average Stock P/E: 73.95)
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. Total Debt / Equity: 0.03
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company - Qualitative Analysis

    Orient Electric Ltd. is a Public Limited Listed company incorporated on 10/10/2016 and has its registered office in the State of Orissa, India. Company’s Corporate Identification Number(CIN) is L31100OR2016PLC025892 and registration number is 025892. Currently Company is involved in the business activities of Manufacture of electric lighting equipment. Company’s Total Operating Revenue is Rs. 2448.37 Cr. and Equity Capital is Rs. 21.22 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Domestic AppliancesUnit - VIII, Plot No. 7, Bhubaneshwar Orissa 751012investor@orientelectric.com
    http://www.orientelectric.com
    Management
    NamePosition Held
    Mr. Chandra Kant BirlaChairman
    Mr. Ravindra Singh NegiManaging Director & CEO
    Mr. TCA RanganathanIndependent Director
    Mr. K Pradeep ChandraIndependent Director
    Mrs. Alka Marezban BharuchaIndependent Director
    Mr. Raju LalIndependent Director

    FAQ

    What is the latest intrinsic value of Orient Electric Ltd?

    The latest intrinsic value of Orient Electric Ltd as on 21 November 2024 is ₹245.10, which is 8.93% higher than the current market price of ₹225.00.

    What is the Market Cap of Orient Electric Ltd?

    The Market Cap of Orient Electric Ltd is 4,797 Cr..

    What is the current Stock Price of Orient Electric Ltd as on 21 November 2024?

    The current stock price of Orient Electric Ltd as on 21 November 2024 is ₹225.

    What is the High / Low of Orient Electric Ltd stocks in FY 2024?

    In FY 2024, the High / Low of Orient Electric Ltd stocks is 297/189.

    What is the Stock P/E of Orient Electric Ltd?

    The Stock P/E of Orient Electric Ltd is 77.5.

    What is the Book Value of Orient Electric Ltd?

    The Book Value of Orient Electric Ltd is 30.5.

    What is the Dividend Yield of Orient Electric Ltd?

    The Dividend Yield of Orient Electric Ltd is 0.67 %.

    What is the ROCE of Orient Electric Ltd?

    The ROCE of Orient Electric Ltd is 14.2 %.

    What is the ROE of Orient Electric Ltd?

    The ROE of Orient Electric Ltd is 10.3 %.

    What is the Face Value of Orient Electric Ltd?

    The Face Value of Orient Electric Ltd is 1.00.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Orient Electric Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE