Orient Electric Ltd (ORIENTELEC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Carysil

Orient Electric

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Bosch Home Comfo

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Symphony

Bajaj Electrical

Epack Durable

Why is Orient Electric Ltd ?

High Management Efficiency with a high ROE of 17.49%

Company has a Debt to Equity ratio (avg) of 0.09 times

Poor long term growth as Operating profit has grown by an annual rate -0.81% of over the last 5 years

Positive results in Mar 26

NET SALES(Q) Highest at Rs 948.25 cr
PBDIT(Q) Highest at Rs 77.38 cr.
OPERATING PROFIT TO NET SALES(Q) Highest at 8.16%

With ROCE of 16.2, it has a Expensive valuation with a 5.1 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -19.77%, its profits have risen by 44% ; the PEG ratio of the company is 1

High Institutional Holdings at 36.98%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -19.77% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Orient Electric should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Orient Electric for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Orient Electric

-19.77%

-0.49

40.36%

Sensex

-3.74%

-0.28

13.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.55%

EBIT Growth (5y)

-0.81%

EBIT to Interest (avg)

6.12

Debt to EBITDA (avg)

0.51

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

3.91

Tax Ratio

25.82%

Dividend Payout Ratio

42.53%

Pledged Shares

Institutional Holding

36.98%

ROCE (avg)

27.64%

ROE (avg)

17.49%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.66

EV to EBIT

29.50

EV to EBITDA

18.81

EV to Capital Employed

5.08

EV to Sales

1.27

PEG Ratio

0.98

Dividend Yield

0.80%

ROCE (Latest)

16.24%

ROE (Latest)

13.15%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company

ROCE(HY)

Highest at 18.98%

NET SALES(Q)

Highest at Rs 948.25 cr

PBDIT(Q)

Highest at Rs 77.38 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 8.16%

PBT LESS OI(Q)

Highest at Rs 52.43 cr.

PAT(Q)

Highest at Rs 41.40 cr.

EPS(Q)

Highest at Rs 1.89

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.37 times

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Here's what is working for Orient Electric

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 52.43 cr has Grown at 81.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 28.92 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 41.40 cr has Grown at 77.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 23.31 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 948.25 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 77.38 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 8.16%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 52.43 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 41.40 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 1.89

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Orient Electric

Debtors Turnover Ratio- Half Yearly

Lowest at 5.37 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio