Orient Electric's share has delivered 109 per cent return to its shareholders in the last 12 months. The share stood at Rs 176.4 on July 27, 2020. It has zoomed to Rs 368 today, translating into gains of 353 per cent during the period. In comparison, Sensex rose 39 per cent in one year.
Rs 5 lakh invested in the share a year ago would have turned into Rs 10.43 lakh today.
The stock rose 4 per cent to hit an all-time high of Rs 368 on BSE today. With a market capitalisation of over Rs 7,600 crore, the share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.
According to MarketsMojo, the company has a strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.83 times. Also, it has strong long-term fundamental strength with an average Return on Capital Employed (ROCE) of 28.69%.
The technical trend has improved from Mildly Bullish on July 22, 2021, and the stock is technically in a Bullish range now and has generated 4 per cent return since then. Multiple factors for the stock are bullish like MACD, Bollinger Band, KST, DOW and OBV. Also, the company has high institutional holdings at 31.15% and the valuation seems to be very attractive.
The company reported a standalone profit of Rs 62.67 crore for the quarter ended March 2021. Profit in the year-ago period stood at Rs 35.78 crore. Revenue from operations grew 42 per cent to Rs 801.71 crore in the March-ended quarter against Rs 563.14 crore a year ago. The EPS has increased to Rs 2.95 in March 2021 from Rs 1.69 in March 2020.
"The mid-term outlook for the consumer electricals industry continues to be optimistic with increased adoption and shorter replacement cycles, driven by increased work-from-home and shift to energy-efficient products," the company said in an investor presentation.
The company further added that the near-term outlook for the business continues to be optimistic on account of improving lifestyles, increasing adoption of home appliances and premiumization driven by connected technologies. The increased adoption of e-commerce has increased access further improving the demand outlook.
"The business intends to maintain the growth momentum from digitization backed distribution expansion in general trade. Further, work on improving margin profile through a mix of localization, commodity substitution, and premiumization will continue to be emphasized to counter increasing commodity prices," the company said in its latest annual report.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today