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Orient Electric Ltd

NSE: ORIENTELEC BSE: 541301

185.11

(-4.83%)

Tue, 03 Mar 2026, 07:40 pm

Orient Electric Analysis

dividend

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Pros

  • Dividends paid are well covered by earnings (3.2x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (3.9x coverage).
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Cons

  • Dividend payments have increased, but Orient Electric only paid a dividend in the past 2 years.
  • Orient Electric has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Orient Electric's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Orient Electric's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Orient Electric's earnings are expected to grow significantly at over 20% yearly.
  • Orient Electric's earnings growth is expected to exceed the India market average.
  • Orient Electric's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Orient Electric's net income is expected to increase by more than 50% in 2 years time.
  • Orient Electric is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
  • Performance (ROE) is expected to be above the current IN Consumer Durables industry average.
  • An improvement in Orient Electric's performance (ROE) is expected over the next 3 years.
  • Orient Electric's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Orient Electric is expected to increase but not above the 50% threshold in 2 years time.
  • Orient Electric's earnings are expected to decrease over the next year.
  • Orient Electric's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Orient Electric's revenue is expected to grow by 8% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Orient Electric is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Orient Electric is profitable, therefore cash runway is not a concern.
  • Orient Electric is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (136.5%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 7.4x debt.
  • Orient Electric's cash and other short term assets cover its long term commitments.
  • Interest payments on debt are well covered by earnings (EBIT is 5.2x coverage).
  • Orient Electric's level of debt (26.4%) compared to net worth is satisfactory (less than 40%).
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • Rakesh's remuneration is about average for companies of similar size in India.
  • Rakesh's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The tenure for the Orient Electric management team is about average.
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Cons

  • The average tenure for the Orient Electric board of directors is less than 3 years, this suggests a new board.

misc

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Pros

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    Cons

    • Orient Electric has significant price volatility in the past 3 months.

    past

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    Pros

    • Orient Electric used its assets more efficiently than the IN Consumer Durables industry average last year based on Return on Assets.
    • Orient Electric has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
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    Cons

    • Orient Electric's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Orient Electric's earnings growth has not exceeded the IN Consumer Durables industry average in the past year (13.3% vs 14.3%).

    value

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    Pros

    • ORIENTELEC outperformed the Consumer Durables industry which returned 5.6% over the past year.
    • ORIENTELEC outperformed the Market in India which returned -14.5% over the past year.
    • NSEI:ORIENTELEC is up 6.1% along with the Consumer Durables industry (6.7%) over the past month.
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    Cons

    • Orient Electric's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Orient Electric's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Orient Electric is overvalued based on assets compared to the IN Consumer Durables industry average.
    • Orient Electric is poor value based on expected growth next year.
    • 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.
    • NSEI:ORIENTELEC is up 6.1% underperforming the market in India which returned 8% over the past month.

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