Onida Electronics Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹28.50−₹0.30 (−1.04%)

DalalBaazaar Score

30 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Onida Electronics Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Onida Electronics Limited engages in manufacturing and trading of electronics and consumer durables in India.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees317

Annual revenue₹656 Cr

How does it make money?

Turns over ₹656 Cr a year. Of every ₹100 of sales, about ₹-11 reaches shareholders as profit, with ₹-6 left at the operating level before interest, tax and depreciation. Each of its 317 employees supports ₹2.07 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin-6.5%

Net margin-11.4%

Revenue / employee₹2.07 Cr

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

VOLTAS LTDP/E 75.8x · ROE 7.0%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

What is its competitive advantage?Little sign of one

Returns on capital of -21.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE-21.3%

ROE-31.4%

Peer median ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -41% while net margin moved +911% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-41%

Margin effect+911%

DalalBaazaar Score

30/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 16.0% a year
✗ Profit fell 3147.4% in the latest year

Quality vs. Valuation

Company Quality

28/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

29/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

4.44x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well0

Nothing stands out as clearly improving on the years of data available.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 0.4% to -6.5% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from -6.5% to -31.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from -1.6% to -21.3% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 53% against revenue growth of -41% — customers are taking longer to pay.

Red Flags

7 items require attention · 4 high · 3 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -4.3x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹75 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.9 points, from 0.4% to -6.5%.
🔴Receivables growing faster than salesFinancial
Receivables up 53% against revenue up -41% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 0.8x to -4.3x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹126 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 48% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 0.4% to -6.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 53% against revenue up -41%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from -6.5% to -31.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above -8%✓ -6.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹126 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -4.3x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -21.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 3 neutral · 6 weak

Market Cap

₹1,053 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

4.44x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-2.08

Loss-making

Negative earnings per share — the business is losing money

ROE

-31.4%

Weak

Weak capital efficiency

ROCE

-21.3%

Weak

Low return on total capital employed

Debt/Equity

0.33x

Low

Conservative leverage

Revenue Growth (YoY)

29.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-3147.4%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹126 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹28.5

Operating Margin

-7.2%

Weak

Thin margins leave little room for error

Net Margin

-10.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.78

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.56

Defensive

Steadier than the market

52W Range Position

25%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

31.3 / 33.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

17.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,107 Cr	₹967 Cr	₹742 Cr	₹656 Cr	-16.0%
EBITDA	₹5 Cr	-₹44 Cr	₹17 Cr	-₹43 Cr	—
EBITDA Margin	0.4%	-4.5%	2.3%	-6.5%	—
PAT (Net Profit)	-₹12 Cr	-₹62 Cr	-₹2 Cr	-₹75 Cr	—
EPS	₹-0.5	₹-2.5	₹-0.09	₹-2.45	—
ROE	-6.5%	-48.4%	-1.8%	-31.4%	—
ROCE	-1.6%	-31.9%	7.2%	-21.3%	—
Total Debt	₹82 Cr	₹104 Cr	₹102 Cr	₹78 Cr	-1.7%
Free Cash Flow	-₹9 Cr	-₹7 Cr	₹22 Cr	-₹126 Cr	—

🔴 Revenue has shrunk at 16.0% a year over 3 years.

🔴 EBITDA has turned negative, from ₹5 Cr to -₹43 Cr.

🔴 EBITDA Margin has fallen from 0.4% to -6.5% over 3 years (-6.9 pts).

🔴 ROE has fallen from -6.5% to -31.4% over 3 years (-24.9 pts).

🔴 ROCE has fallen from -1.6% to -21.3% over 3 years (-19.7 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.7% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹524 Cr

Total Liabilities

₹286 Cr

Total Debt

₹78 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

-₹107 Cr

Capex

-₹18 Cr

Shareholding (proxy)

Institutional Holding

25.9%

Insider Holding

42.2%

Corporate Actions

Ex-Dividend Date

09 Jun 2011

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

1 positive1 mixed4 general

ONIDA Stock Price and Chart — NSE:ONIDA

TradingView, 02 Aug

Onida Electronics appoints Gunjan Srivastava as Managing Director

scanx.trade, 03 Jul

MIRC Electronics Limited's (NSE:MIRCELECTR) 27% Price Boost Is Out Of Tune With Revenues

Simply Wall Street, 10 Jan

Onida Electronics Ltd Upgraded to Sell on Technical Improvements Despite Weak Fundamentals

MarketsMojo, 06 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

MIRC Electronics Share Price Forecast: 3 Year Outlook to 2030

Univest, 21 Jul

Half Yearly Results, Half yearly Earnings for MIRC Electronic

The Economic Times, 17 JunResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🔴Business QualityWeak4.7/20

🟡Financial HealthAdequate10.9/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak2.5/15

🔴ValuationDemanding5.1/15

🔴RiskHigh4/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -8%-6.5%
✗Free cash flow remains positive-₹126 Cr
✗Interest cover stays above 3x-4.3x
✗ROCE stays above 8%-21.3%