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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Orient Electric Ltd

About the Company - Orient Electric Ltd

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
Electric Equipment - GeneralUnit - VIII, Plot No. 7, Bhubaneshwar Orissa 751012investor@orientelectric.com
http://www.orientelectric.com
Management
NamePosition Held
Mr. Chandra Kant BirlaNon Executive Chairman
Mr. Desh Deepak KhetrapalNon Executive Vice Chairman
Mr. Rajan GuptaManaging Director & CEO
Ms. Alka Marezban BharuchaIndependent Director
Mr. K Pradeep ChandraIndependent Director
Mr. TCA RanganathanIndependent Director

Orient Electric Ltd. Share Price Update

Share PriceValue
Today₹210.15
Previous Day₹207.05

Basic Stock Data of Orient Electric Ltd

Market Cap 4,497 Cr.
Current Price 211
High / Low279/189
Stock P/E62.1
Book Value 28.8
Dividend Yield0.71 %
ROCE19.2 %
ROE13.5 %
Face Value 1.00

Data Source: screener.in

Competitors of Orient Electric Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
CG Power & Industrial Solutions Ltd 65,688 Cr. 430503/27776.4 14.60.35 %61.6 %66.0 % 2.00
V-Guard Industries Ltd 13,500 Cr. 311335/23868.2 37.90.42 %14.5 %12.0 % 1.00
Spectrum Electrical Industries Ltd 2,622 Cr. 1,7341,898/260205 64.60.06 %11.4 %9.60 % 10.0
Urja Global Ltd 1,219 Cr. 23.241.8/6.00494 3.300.00 %1.55 %0.89 % 1.00
Marine Electricals (India) Ltd 1,509 Cr. 116123/32.571.6 15.10.00 %16.0 %11.0 % 2.00
Industry Average16.4 Cr176.24183.0427.10.17%21.01%19.9%3.2

Orient Electric Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales434618802422594678753622511739658706567
Expenses376534705400532612673583499684612662546
Operating Profit58849722626681381255464421
OPM %13%14%12%5%10%10%11%6%2%7%7%6%4%
Other Income11411135696322
Interest4555556556665
Depreciation11111112121212131314141414
Profit before tax436984747516525044332723
Tax %25%25%26%26%25%25%25%25%315%25%25%26%21%
Net Profit325263535384919-033252018
EPS in Rs1.532.452.950.241.641.792.300.89-0.011.531.160.920.86

Orient Electric Ltd Quarterly Chart

Orient Electric Ltd Profit & Loss

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2161,6001,8642,0622,0332,4482,5292,669
Expenses1931,4611,7211,8851,8132,2172,3782,504
Operating Profit24139143177220231151166
OPM %11%9%8%9%11%9%6%6%
Other Income1384662740
Interest324232621202223
Depreciation220234043475456
Profit before tax2098105114162170102126
Tax %41%35%34%31%26%25%26%
Net Profit126469791201277695
EPS in Rs3.023.273.715.645.973.564.47
Dividend Payout %0%33%31%31%35%34%42%

Orient Electric Ltd Profit & Loss Yearly Chart

Orient Electric Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:10%
3 Years:7%
TTM:2%
Compounded Profit Growth
10 Years:%
5 Years:3%
3 Years:-1%
TTM:-28%
Stock Price CAGR
10 Years:%
5 Years:9%
3 Years:-9%
1 Year:-26%
Return on Equity
10 Years:%
5 Years:23%
3 Years:22%
Last Year:13%

Orient Electric Ltd Balance Sheet

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital021212121212121
Reserves192242285338434520563594
Borrowings211186135155616897124
Other Liabilities344359447446645579583490
Total Liabilities7478088899601,1621,1871,2651,229
Fixed Assets0106117190186212226240
CWIP0541011386151
Investments00000000
Other Assets747698768760965972953838
Total Assets7478088899601,1621,1871,2651,229

Orient Electric Ltd Reserves and Borrowings Chart

Orient Electric Ltd Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 599113212942711190
Cash from Investing Activity 4-22-31-51-15178-110
Cash from Financing Activity -40-62-100-103-144-80-66
Net Cash Flow2371-241331014

Orient Electric Ltd Financial Efficiency Indicators

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days609887764645851
Inventory Days516737674646757
Days Payable1,46297101861339391
Cash Conversion Cycle-337655253-63318
Working Capital Days1,01658494823022
ROCE %29%29%29%35%34%19%

Orient Electric Ltd Financial Efficiency Indicators Chart

Orient Electric Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters38.52%38.52%38.48%38.52%38.52%38.52%38.52%38.42%38.42%38.41%38.30%38.30%
FIIs7.53%9.23%8.80%8.74%8.99%8.26%6.16%6.12%6.13%5.75%5.50%5.69%
DIIs23.02%22.57%22.35%23.78%24.94%26.30%29.08%27.02%26.66%27.60%27.87%29.98%
Public30.93%29.68%30.37%28.96%27.55%26.92%26.24%28.43%28.79%28.23%28.32%26.04%
No. of Shareholders34,48746,20760,03567,18373,78880,20877,76288,89583,28780,01683,45587,598

Orient Electric Ltd Shareholding Pattern Chart

No. of Orient Electric Ltd Shareholders

Orient Electric Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Mirae Asset Focused Fund104967382.5227.31
Nippon India Small Cap Fund99742280.53215.99
Axis Small Cap Fund67326920.81145.8
Kotak Small Cap Fund - Regular Plan58085270.94125.78
ICICI Prudential Smallcap Fund47505041.56102.87
ICICI Prudential Multicap Fund42704000.9792.48
Nippon India Growth Fund38103640.3982.51
ICICI Prudential Housing Opportunities Fund21223541.8645.96
Aditya Birla Sun Life Small Cap Fund21139820.9145.78
Kotak Focused Equity Fund17293091.337.45

Orient Electric Ltd ROCE Trend

Orient Electric Ltd EPS Trend

Orient Electric Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)3.575.975.643.713.27
Diluted EPS (Rs.)3.565.955.633.703.27
Cash EPS (Rs.)6.088.197.685.604.35
Book Value[Excl.RevalReserv]/Share (Rs.)27.4725.5121.4716.9414.45
Book Value[Incl.RevalReserv]/Share (Rs.)27.4725.5121.4716.9414.45
Dividend / Share (Rs.)1.502.002.001.151.00
Revenue From Operations / Share (Rs.)118.85115.3895.7997.1687.86
PBDIT / Share (Rs.)8.3511.1710.648.517.11
PBIT / Share (Rs.)5.838.968.616.626.02
PBT / Share (Rs.)4.798.007.635.384.94
Net Profit / Share (Rs.)3.565.975.643.703.27
PBDIT Margin (%)7.029.6811.108.758.08
PBIT Margin (%)4.907.768.986.806.85
PBT Margin (%)4.036.937.965.545.62
Net Profit Margin (%)2.995.175.893.813.71
Return on Networth / Equity (%)12.9723.3926.2721.8722.60
Return on Capital Employeed (%)18.2130.8935.6132.6537.07
Return On Assets (%)5.9910.6610.308.187.79
Long Term Debt / Equity (X)0.000.000.000.000.08
Total Debt / Equity (X)0.010.020.030.260.40
Asset Turnover Ratio (%)2.062.081.922.232.19
Current Ratio (X)1.491.561.371.321.33
Quick Ratio (X)1.000.990.990.780.84
Inventory Turnover Ratio (X)2.502.932.452.813.17
Dividend Payout Ratio (NP) (%)56.0033.4922.1431.0330.61
Dividend Payout Ratio (CP) (%)32.8424.4116.2820.5422.97
Earning Retention Ratio (%)44.0066.5177.8668.9769.39
Cash Earning Retention Ratio (%)67.1675.5983.7279.4677.03
Interest Coverage Ratio (X)8.0211.6910.896.916.60
Interest Coverage Ratio (Post Tax) (X)4.427.246.784.014.03
Enterprise Value (Cr.)5598.936689.616358.204279.233331.59
EV / Net Operating Revenue (X)2.212.733.132.081.79
EV / EBITDA (X)31.5328.2128.1623.7122.09
MarketCap / Net Operating Revenue (X)2.272.793.252.031.74
Retention Ratios (%)43.9966.5077.8568.9669.38
Price / BV (X)9.8412.6114.4911.6610.56
Price / Net Operating Revenue (X)2.272.793.252.031.74
EarningsYield0.010.010.010.010.02

Orient Electric Ltd Profitability Ratios (%)

Orient Electric Ltd Liquidity Ratios

Orient Electric Ltd Liquidity Ratios (%)

Orient Electric Ltd Interest Coverage Ratios (%)

Orient Electric Ltd Valuation Ratios

Fair Value / Intrinsic Value of Orient Electric Ltd

Fair Value: ₹243.16

The stock is undervalued by 15.24% compared to the current price ₹211

*Investments are subject to market risks

Strength and Weakness of Orient Electric Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 25.00%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 30.00, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -17.43, which is a positive sign.
  4. The company has higher reserves (396.00 cr) compared to borrowings (129.63 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (28.50 cr) and profit (112.13 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 9.16 and average Dividend Yield of 7.06%.

Should I Buy Orient Electric Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Orient Electric Ltd:
    1. Net Profit Margin: 2.99%
      • 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: 18.21% (Industry Average ROCE: 24.28%)
      • 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. Interest Coverage Ratio (Post Tax): 4.42
      • 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.
    4. Quick Ratio: 1.00
      • 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.
    5. ✗ Stock P/E: 60.7 (Industry average Stock P/E: 54.88)
      • 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.
    6. ✓ Total Debt / Equity: 0.01
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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