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Orient Electric
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Orient Electric Limited became a part of diversified Indian Conglomerate CK Birla Group in year 1954. The Company has established itself as a one-stop provider of fans, lighting, home appliances, switchgears and other electrical solutions. The Company was incorporated on 10th October 2016 and became a subsidiary of Orient Paper & Industries Ltd. (OPIL). A Scheme of Arrangement had been filed with National Company Law Tribunal to demerge the Consumer Electric Business of the Holding Company (OPIL) by transferring the same on a going concern basis to the Company w.e.f. 1st March 2017, which has subsequently been approved by the National Company Law Tribunal. Pursuant to Scheme of Arrangement, shares held by Demerged Company stands cancelled and post demerger, the Company ceased to be a subsidiary of OPIL.
The Company is engaged in manufacture/purchase and sale of Electrical Consumer Durables, Lighting & Switchgear products. Presently, it has manufacturing facilities at Faridabad, Noida and Kolkata.
In FY 2019-2020, the Company launched the new Inverter i-Series in fans and entered into façade lighting. It also launched energy-saving inverter air-coolers in March 2020. It launched 4 products in air cooler category such as, Ultimo, Knight Desert coolers, metal coolers and inverter air coolers. A new range of Glassline Water Heaters with connected features, was introduced in the year. Further, Gas water heaters were also launched. A new Breakfast series of Kitchen appliances, like Induction cooktop, toaster etc. was launched. It introduced EyeLuv lighting series in July 2019. Powered without battery, Wireless Bells which function on kinetic bell push were launched in September 2019. It introduced IoT-enabled smart plugs in December 2019 which allow for wireless control & operation of appliances/ devices through smartphones & voice-control devices. In FY 2021, Company launched Stella range of modular switches.
During FY 2022, Company redesigned its fans distribution framework in Odisha and Bihar to extract the full market potential of these territories. These alterations to OEL's distribution system were designed to gain market share within these regions. Apart from this, it expanded fan distribution network within South India to capture and reinforce under penetrated market. It acquired land in Hyderabad for a new greenfield project in FY 2022. It made notable investments in setting up R&D Centre at Faridabad; expanding Driver Plant & LED lighting facility at Noida; expanding LED Lighting facility; in the relayout of Faridabad Plant; making moulds for new products, and in various digital transformation initiatives of the Company. New launches of UV Sanitech, Emergency lighting, Supercoolers and expanded range of i-Series fans and Kitchen Appliances received significant traction and enthusiastic reception from channel partners and consumers.
During the year 2022-23, the Company launched Cloud 3 Cooling Fan powered by the revolutionary CloudchillTM Technology platform. It strengthened BLDC Fans range, introducing over 10 new models. It launched instant water heaters in 5.5 litres capacity. Thereafter, it launched new water heaters with polymer body. It introduced multiple products both in B2B and B2C segments, like smart LED lights and façade lighting solutions. In Switchgear, it augmented modular switches range and launched electrical house wires for growth potential. It completed projects such as, the Ganga Barrage, the Varanasi Cantonment Railway Station, and the Puducherry Smart City during FY23.
Orient Electric share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Orient Electric indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Orient Electric is valued compared to its competitors.
Orient Electric PE ratio helps investors understand what is the market value of each stock compared to Orient Electric 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Orient Electric evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Orient Electric generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Orient Electric in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Orient Electric shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Orient Electric compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Orient Electric over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Orient Electric helps investors get an insight into when they can enter or exit the stock. Key components of Orient Electric Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Orient Electric shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Orient Electric ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Orient Electric provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Orient Electric highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Orient Electric .
The balance sheet presents a snapshot of Orient Electric ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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