Orient Electric Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹200.10+₹2.96 (+1.50%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Orient Electric Limited manufactures, purchases, and sells lifestyle electrical products in India and internationally. It operates in two segments, Electrical Consumer Durables, and Lighting and Switchgear.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees1,204

Annual revenue₹3,277 Cr

How does it make money?

Turns over ₹3,277 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 1,204 employees supports ₹2.72 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.72 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.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 17.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE17.1%

What is the outlook?

14 analysts covering the stock expect revenue to grow about 10.9% and earnings to grow about 25.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.9%

Est. earnings growth+25.9%

Analysts14

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +32% while net margin moved -4% 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+32%

Margin effect-4%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✓ ROCE of 17.2% is comfortably above a typical cost of capital
• ROCE has been broadly stable
✗ EBITDA margin of 7.1% is thin — little cushion if costs rise
✗ Net margin of 3.4% is slim
• Revenue has compounded at 9.6% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

60/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

34.2x

3Y Median

58.9x

40 monthly readings · mean 57.1x · range 35.2x–81.7x

Sector Median

68.5x

median of 3 sector peers

🟢Current valuation is approximately 42% below its 3y median of 58.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 50% below the peer median of 68.5x.

vs. its own history

Cheap

58.9x median over 40 months · -42%

vs. sector peers

Cheap

68.5x median of 3 peers · -50%

vs. generic bands

Fair

15x–35x

EV/EBITDA

18.7x

PEG

4.22

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.13x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 watch

🟡Receivables growing faster than salesFinancial
Receivables up 74% against revenue up 32% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 42% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 50% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹76 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 74% against revenue up 32%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 5%✓ 7.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 9.6% CAGR
Latest reported year was 25.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹76 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 17.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹4,270 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

34.2x

Fair

Fairly valued against the generic band

P/B Ratio

5.30x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹5.85

Profitable

Profitable on a per-share basis

ROE

16.5%

Strong

Strong capital efficiency

ROCE

17.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.13x

Low

Conservative leverage

Revenue Growth (YoY)

25.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

122.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.75%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹84 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

23.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

7.6%

Average

Average asset productivity

Operating Margin

4.3%

Weak

Thin margins leave little room for error

Net Margin

3.4%

Average

Average bottom-line conversion

Current Ratio

1.51

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.32

Defensive

Steadier than the market

52W Range Position

75%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

167.4 / 175.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

83.8

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,489 Cr	₹2,772 Cr	₹3,051 Cr	₹3,277 Cr	+9.6%
EBITDA	₹174 Cr	₹155 Cr	₹211 Cr	₹232 Cr	+10.0%
EBITDA Margin	7.0%	5.6%	6.9%	7.1%	—
PAT (Net Profit)	₹76 Cr	₹75 Cr	₹83 Cr	₹96 Cr	+8.1%
EPS	₹3.56	₹3.53	₹3.9	₹4.49	+8.0%
ROE	13.0%	11.8%	12.0%	12.6%	—
ROCE	17.7%	15.7%	17.0%	17.2%	—
Total Debt	₹97 Cr	₹112 Cr	₹86 Cr	₹93 Cr	-1.4%
Free Cash Flow	₹76 Cr	-₹57 Cr	₹31 Cr	₹76 Cr	+0.0%

🟢 Revenue has grown at 9.6% a year over 3 years.

🟢 EBITDA has grown at 10.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.1% over 3 years.

🟢 PAT (Net Profit) has grown at 8.1% a year over 3 years.

🟢 EPS has grown at 8.0% a year over 3 years.

🟡 ROE has held roughly flat at 12.6% over 3 years.

🟡 ROCE has held roughly flat at 17.2% over 3 years.

🟡 Total Debt has been broadly flat over 3 years (-1.4% a year).

🟡 Free Cash Flow has been broadly flat over 3 years (0.0% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,667 Cr

Total Liabilities

₹907 Cr

Cash & Equivalents

₹32 Cr

Operating Cash Flow

₹110 Cr

Capex

-₹34 Cr

Shareholding (proxy)

Institutional Holding

33.7%

Insider Holding

46.2%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

10 Jul 2026

Analyst Consensus

Recommendations

14 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹257.29

+28.6% vs CMP

Target Range

₹225 – ₹295

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 positive3 mixed2 general

Orient Electric Limited Just Recorded A 41% EPS Beat: Here's What Analysts Are Forecasting Next

Simply Wall Street, 18 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Why Orient Electric Share Price Is Rising

Equitymaster, 16 Oct

31% rally in 2 weeks: Orient Electric share price surges post Q2 results - ICICI Sec sees 22% upside | Target price

Livemint, 16 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Orient Electric Share Price Gains After Strong Q2 Update

Univest, 15 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Orient Electric Q2 profit jumps two-fold to Rs 27 crore, revenue rises 25% YoY

The Economic Times, 15 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Buy Orient Electric; target of Rs 240: ICICI Securities

Moneycontrol.com, 16 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 5 tripwires holding · see Key things to watch ↑