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Orient Electric

NSEI:ORIENTELEC
Snowflake Description

High growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ORIENTELEC
NSEI
₹39B
Market Cap
  1. Home
  2. IN
  3. Consumer Durables
Company description

Orient Electric Limited manufactures/purchases and sells electrical consumer durables, and lighting and switchgear products in India. The last earnings update was 67 days ago. More info.


Add to Portfolio Compare Print
  • Orient Electric has significant price volatility in the past 3 months.
ORIENTELEC Share Price and Events
7 Day Returns
-5.7%
NSEI:ORIENTELEC
-1.3%
IN Consumer Durables
-3.9%
IN Market
1 Year Returns
18.2%
NSEI:ORIENTELEC
-14.3%
IN Consumer Durables
-32.2%
IN Market
ORIENTELEC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Orient Electric (ORIENTELEC) -5.7% -28.3% -4.7% 18.2% - -
IN Consumer Durables -1.3% -24.7% -19% -14.3% -8.7% 15.2%
IN Market -3.9% -26.8% -31.7% -32.2% -23.8% -14.9%
1 Year Return vs Industry and Market
  • ORIENTELEC outperformed the Consumer Durables industry which returned -14.3% over the past year.
  • ORIENTELEC outperformed the Market in India which returned -32.2% over the past year.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

ORIENTELEC Value

 Is Orient Electric undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Orient Electric to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Orient Electric.

NSEI:ORIENTELEC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.9%
Perpetual Growth Rate 10-Year IN Government Bond Rate 6.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:ORIENTELEC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 6.5%
Equity Risk Premium S&P Global 7.9%
Consumer Durables Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.719 (1 + (1- 35%) (3.34%))
0.822
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.82
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 6.48% + (0.822 * 7.85%)
12.94%

Discounted Cash Flow Calculation for NSEI:ORIENTELEC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Orient Electric is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NSEI:ORIENTELEC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 12.94%)
2020 690.25 Analyst x4 611.19
2021 969.67 Analyst x3 760.26
2022 1,498.00 Analyst x3 1,039.96
2023 1,668.14 Est @ 11.36% 1,025.43
2024 1,833.19 Est @ 9.89% 997.82
2025 1,995.80 Est @ 8.87% 961.89
2026 2,158.52 Est @ 8.15% 921.16
2027 2,323.67 Est @ 7.65% 878.06
2028 2,493.29 Est @ 7.3% 834.24
2029 2,669.16 Est @ 7.05% 790.79
Present value of next 10 years cash flows ₹8,820.00
NSEI:ORIENTELEC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹2,669.16 × (1 + 6.48%) ÷ (12.94% – 6.48%)
₹44,024.64
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹44,024.64 ÷ (1 + 12.94%)10
₹13,043.10
NSEI:ORIENTELEC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹8,820.00 + ₹13,043.10
₹21,863.10
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹21,863.10 / 212.19
₹103.04
NSEI:ORIENTELEC Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:ORIENTELEC represents 0.98753x of BSE:541301
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.98753x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 103.04 x 0.98753
₹101.75
Value per share (INR) From above. ₹101.75
Current discount Discount to share price of ₹182.05
= -1 x (₹182.05 - ₹101.75) / ₹101.75
-78.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Orient Electric is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Orient Electric's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Orient Electric's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:ORIENTELEC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in INR ₹3.83
BSE:541301 Share Price ** BSE (2020-04-03) in INR ₹184.35
India Consumer Durables Industry PE Ratio Median Figure of 39 Publicly-Listed Consumer Durables Companies 15.94x
India Market PE Ratio Median Figure of 2,614 Publicly-Listed Companies 9.41x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Orient Electric.

NSEI:ORIENTELEC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:541301 Share Price ÷ EPS (both in INR)

= 184.35 ÷ 3.83

48.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Orient Electric is overvalued based on earnings compared to the IN Consumer Durables industry average.
  • Orient Electric is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Orient Electric's expected growth come at a high price?
Raw Data
NSEI:ORIENTELEC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 48.09x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
30.6%per year
India Consumer Durables Industry PEG Ratio Median Figure of 8 Publicly-Listed Consumer Durables Companies 1.56x
India Market PEG Ratio Median Figure of 400 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

NSEI:ORIENTELEC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 48.09x ÷ 30.6%

1.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Orient Electric is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Orient Electric's assets?
Raw Data
NSEI:ORIENTELEC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in INR ₹14.93
BSE:541301 Share Price * BSE (2020-04-03) in INR ₹184.35
India Consumer Durables Industry PB Ratio Median Figure of 49 Publicly-Listed Consumer Durables Companies 1.29x
India Market PB Ratio Median Figure of 3,613 Publicly-Listed Companies 0.63x
NSEI:ORIENTELEC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:541301 Share Price ÷ Book Value per Share (both in INR)

= 184.35 ÷ 14.93

12.35x

* Primary Listing of Orient Electric.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Orient Electric is overvalued based on assets compared to the IN Consumer Durables industry average.
X
Value checks
We assess Orient Electric's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Durables industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Durables industry average (and greater than 0)? (1 check)
  5. Orient Electric has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ORIENTELEC Future Performance

 How is Orient Electric expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
30.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Orient Electric expected to grow at an attractive rate?
  • Orient Electric's earnings growth is expected to exceed the low risk savings rate of 6.5%.
Growth vs Market Checks
  • Orient Electric's earnings growth is expected to exceed the India market average.
  • Orient Electric's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:ORIENTELEC Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:ORIENTELEC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 30.6%
NSEI:ORIENTELEC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 13.8%
India Consumer Durables Industry Earnings Growth Rate Market Cap Weighted Average 23.3%
India Consumer Durables Industry Revenue Growth Rate Market Cap Weighted Average 13.4%
India Market Earnings Growth Rate Market Cap Weighted Average 19.2%
India Market Revenue Growth Rate Market Cap Weighted Average 8.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:ORIENTELEC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:ORIENTELEC Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 28,732 1,844 1,532 4
2021-03-31 24,944 1,617 1,147 5
2020-04-04
2020-03-31 21,933 1,214 850 5
NSEI:ORIENTELEC Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-12-31 21,364 815
2019-09-30 20,611 1,356 742
2019-06-30 19,995 761
2019-03-31 18,644 1,320 693
2018-12-31 18,497 777
2018-09-30 17,800 781
2018-06-30 17,306 758
2018-03-31 15,998 913 640
2017-03-31 25,473 7,044 1,419

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Orient Electric's earnings are expected to grow significantly at over 20% yearly.
  • Orient Electric's revenue is expected to grow by 13.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:ORIENTELEC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Orient Electric Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:ORIENTELEC Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 7.21 8.12 5.80 4.00
2021-03-31 5.41 6.47 4.20 5.00
2020-04-04
2020-03-31 4.00 4.70 3.00 5.00
NSEI:ORIENTELEC Past Financials Data
Date (Data in INR Millions) EPS *
2019-12-31 3.83
2019-09-30 3.50
2019-06-30 3.58
2019-03-31 3.27
2018-12-31 3.68
2018-09-30 3.67
2018-06-30 3.97
2018-03-31 3.02
2017-03-31 6.69

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Orient Electric is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Orient Electric's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Orient Electric has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ORIENTELEC Past Performance

  How has Orient Electric performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Orient Electric's growth in the last year to its industry (Consumer Durables).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if Orient Electric's year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Orient Electric's 1-year earnings growth to the 5-year average due to insufficient past data.
  • Orient Electric's earnings growth has not exceeded the IN Consumer Durables industry average in the past year (4.8% vs 15.6%).
Earnings and Revenue History
Orient Electric's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Orient Electric Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:ORIENTELEC Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 21,363.80 814.50 2,877.40
2019-09-30 20,611.30 741.70 2,810.20
2019-06-30 19,995.30 761.40 2,727.90
2019-03-31 18,644.00 693.10 2,657.70
2018-12-31 18,497.37 776.85 2,529.52
2018-09-30 17,800.32 780.91 2,453.46
2018-06-30 17,306.31 757.75 1,508.46
2018-03-31 15,997.70 640.30 2,314.40
2017-03-31 25,473.48 1,418.78 2,531.45

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Orient Electric has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Orient Electric used its assets more efficiently than the IN Consumer Durables industry average last year based on Return on Assets.
  • Unable to establish if Orient Electric improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Orient Electric's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Durables industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Orient Electric has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ORIENTELEC Health

 How is Orient Electric's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Orient Electric's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Orient Electric is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Orient Electric's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Orient Electric's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Orient Electric Company Filings, last reported 3 months ago.

NSEI:ORIENTELEC Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 3,193.00 1,306.30 194.90
2019-09-30 3,193.00 1,306.30 194.90
2019-06-30 3,065.80 1,349.40 315.10
2019-03-31 3,065.80 1,349.40 315.10
2018-12-31 2,688.60 1,398.47 294.65
2018-09-30 2,688.60 1,398.47 294.65
2018-06-30 2,632.48 1,641.37 308.26
2018-03-31 2,632.50 1,859.30 308.00
2017-03-31 2,129.62 2,105.28 233.72
  • Orient Electric's level of debt (40.9%) compared to net worth is high (greater than 40%).
  • Unable to establish if Orient Electric's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (103.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.6x coverage).
X
Financial health checks
We assess Orient Electric's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Orient Electric has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ORIENTELEC Dividends

 What is Orient Electric's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.71%
Current annual income from Orient Electric dividends. Estimated to be 0.97% next year.
If you bought ₹2,000 of Orient Electric shares you are expected to receive ₹14 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Orient Electric's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.96%).
  • Orient Electric's dividend is below the markets top 25% of dividend payers in India (4.06%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:ORIENTELEC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
India Consumer Durables Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 0.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1419 Stocks 2%
India Minimum Threshold Dividend Yield 10th Percentile 0.4%
India Bottom 25% Dividend Yield 25th Percentile 1%
India Top 25% Dividend Yield 75th Percentile 4.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:ORIENTELEC Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 1.93 3.00
2021-03-31 1.63 3.00
2020-04-04
2020-03-31 1.27 3.00
NSEI:ORIENTELEC Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2020-01-28 1.300 0.584
2019-10-22 1.300 0.670
2019-06-17 1.000 0.631
2019-01-28 1.000 0.664
2018-08-01 1.000 0.704

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Orient Electric has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Orient Electric only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Orient Electric's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).
X
Income/ dividend checks
We assess Orient Electric's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Orient Electric afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Orient Electric has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ORIENTELEC Management

 What is the CEO of Orient Electric's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rakesh Khanna
COMPENSATION ₹30,700,000
AGE 57
TENURE AS CEO 2.3 years
CEO Bio

Mr. Rakesh Khanna has been an Executive Director, CEO and Managing Director of Orient Electric Limited since January 23, 2018. Mr. Khanna served as Process Owner for Sales Service and Marketing of Hitachi Home & Life Solutions (India) Ltd. until April 2007. Mr. Khanna has been associated with Hitachi since 1994. Mr. Khanna served as Senior Vice President for Sales, Service and Marketing in Hitachi Home & Life Solutions (India) Ltd. He has an extensive experience of around 22 years. He served as a Director of Hitachi Home & Life Solutions (India) Ltd. from May 15, 2005 to April 2007. He holds Bachelor of Engineering, Master of Management Studies, Bachelor of Law and Diploma in Computer Management.

CEO Compensation
  • Rakesh's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Rakesh's remuneration is about average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Orient Electric management team in years:

2.3
Average Tenure
52
Average Age
  • The tenure for the Orient Electric management team is about average.
Management Team

Rakesh Khanna

TITLE
MD, CEO & Executive Director
COMPENSATION
₹31M
AGE
57
TENURE
2.3 yrs

Saibal Sengupta

TITLE
Chief Financial Officer
COMPENSATION
₹17M
AGE
54
TENURE
2 yrs

Ravi Chopra

TITLE
Vice President of Human Resources
AGE
44

Arvind Singh

TITLE
VP & Head of Manufacturing – Fans
AGE
53

Puneet Dhawan

TITLE
SBU Head - Lighting BU
AGE
51

Atul Jain

TITLE
SBU Head of Fans & International Business
AGE
52

Pushp Baishakhia

TITLE
SBU Head of Appliances
AGE
45

Ashok Singh

TITLE
SBU Head of Switchgear & Wiring Accessories
AGE
55

Srihari Rao

TITLE
Senior Vice President of Innovation
AGE
47

Hitesh Jain

TITLE
Company Secretary
COMPENSATION
₹4M
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Orient Electric board of directors in years:

2.3
Average Tenure
63.5
Average Age
  • The average tenure for the Orient Electric board of directors is less than 3 years, this suggests a new board.
Board of Directors

Chandra Birla

TITLE
Chairman of the Board
COMPENSATION
₹4M
AGE
64
TENURE
2.3 yrs

Rakesh Khanna

TITLE
MD, CEO & Executive Director
COMPENSATION
₹31M
AGE
57
TENURE
2.3 yrs

Desh Khetrapal

TITLE
Vice Chairman
COMPENSATION
₹3M
AGE
64
TENURE
0.3 yrs

Tirumalai Cunnavakaum Ranganathan

TITLE
Independent Director
COMPENSATION
₹3M
AGE
66
TENURE
2.3 yrs

Alka Bharucha

TITLE
Independent Director
COMPENSATION
₹3M
AGE
62
TENURE
2.3 yrs

K. Chandra

TITLE
Independent Director
COMPENSATION
₹3M
AGE
63
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Orient Electric's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Orient Electric has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ORIENTELEC News

Simply Wall St News

What Type Of Shareholder Owns Orient Electric Limited's (NSE:ORIENTELEC)?

The big shareholder groups in Orient Electric Limited (NSE:ORIENTELEC) have power over the company. … With a market capitalization of ₹33b, Orient Electric is a small cap stock, so it might not be well known by many institutional investors. … Insider Ownership Of Orient Electric The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Should We Be Delighted With Orient Electric Limited's (NSE:ORIENTELEC) ROE Of 25%?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Orient Electric: 25% = ₹761m ÷ ₹3.1b (Based on the trailing twelve months to June 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Orient Electric Have A Good Return On Equity? … Combining Orient Electric's Debt And Its 25% Return On Equity Although Orient Electric does use debt, its debt to equity ratio of 0.44 is still low.

Simply Wall St -

Interested In Orient Electric Limited (NSE:ORIENTELEC)’s Upcoming ₹0.50 Dividend? You Have 1 Days Left

Orient Electric's next dividend payment will be ₹0.50 per share, and in the last 12 months, the company paid a total of ₹1.00 per share. … That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. … It's positive to see that Orient Electric's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.

Simply Wall St -

Is Orient Electric Limited's (NSE:ORIENTELEC) High P/E Ratio A Problem For Investors?

The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Orient Electric: P/E of 48.88 = ₹159.65 ÷ ₹3.27 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good? … Orient Electric saw earnings per share improve by -8.2% last year. … The Bottom Line On Orient Electric's P/E Ratio Orient Electric has a P/E of 48.9.

Simply Wall St -

Is Orient Electric Limited (NSE:ORIENTELEC) A Great Dividend Stock?

Is Orient Electric Limited (NSE:ORIENTELEC) a good dividend stock? … This company has been paying a dividend for less than 2 years, which we think is too soon to consider it a reliable dividend stock. … While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than Orient Electric out there.

Simply Wall St -

Does Orient Electric's (NSE:ORIENTELEC) Share Price Gain of 33% Match Its Business Performance?

To wit, the Orient Electric Limited (NSE:ORIENTELEC) share price is 33% higher than it was a year ago, much better than the market return of around 0.8% (not including dividends) in the same period. … We'll need to follow Orient Electric for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long. … During the last year Orient Electric grew its earnings per share (EPS) by 8.4%.

Simply Wall St -

Can Orient Electric Limited's (NSE:ORIENTELEC) ROE Continue To Surpass The Industry Average?

Our data shows Orient Electric has a return on equity of 29% for the last year. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.29 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Do Institutions Own Shares In Orient Electric Limited (NSE:ORIENTELEC)?

Companies that used to be publicly owned tend to have lower insider ownership. … Orient Electric is not a large company by global standards. … We can zoom in on the different ownership groups, to learn more about ORIENTELEC

Simply Wall St -

Here's What Orient Electric Limited's (NSE:ORIENTELEC) P/E Is Telling Us

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at Orient Electric Limited's (NSE:ORIENTELEC) P/E ratio and reflect on what it tells us about the company's share price. … How Do I Calculate Orient Electric's Price To Earnings Ratio

Simply Wall St -

Orient Electric Limited (NSE:ORIENTELEC) Earns A Nice Return On Capital Employed

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … How Do You Calculate Return On Capital Employed?

Simply Wall St -

ORIENTELEC Company Info

Description

Orient Electric Limited manufactures/purchases and sells electrical consumer durables, and lighting and switchgear products in India. The company operates through two segments, Electrical Consumer Durables, and Lighting and Switchgear segments. It offers ceiling, portable, airflow, wall, pedestal, stand, table, exhaust, and multi-utility fans, as well as related components and accessories; and home appliances, such as air coolers, room and water heaters, dry and steam irons, hand blenders, mixer grinders, juicer mixer grinders, wet grinders, rice cookers, electric kettles, pop-up toasters, and other products. The company also provides lighting products comprising LED bulbs and luminaires, professional lighting products, CFLs, fluorescent tube lights, incandescent lamps, and conventional fittings; and switchgears, including miniature and residual current circuit breakers, distribution boards, and isolators, as well as wiring accessories. It also exports its products to approximately 40 international markets. The company sells its products through a network of dealers, retailers, and Orient Electric smart shops, as well as online. It also franchises smart shops. Orient Electric Limited was incorporated in 2016 and is based in New Delhi, India.

Details
Name: Orient Electric Limited
ORIENTELEC
Exchange: NSEI
Founded: 2016
₹39,116,397,293
212,185,502
Website: http://www.orientelectric.com
Address: Orient Electric Limited
240, Okhla Industrial Estate,
Phase III,
New Delhi,
Delhi, 110020,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 541301 Equity Shares Mumbai Stock Exchange IN INR 14. May 2018
NSEI ORIENTELEC Equity Shares National Stock Exchange of India IN INR 14. May 2018
Number of employees
Current staff
Staff numbers
861
Orient Electric employees.
Industry
Household Appliances
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/04 15:24
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/03
Last earnings filing: 2020/01/28
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.