Our 4th company in the Series of Best Stocks to Buy in India for Short term 2021 is Orient Electric Ltd
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Orient Electric is focused on providing lifestyle electrical solutions which include fans, lighting, home appliances and switchgears
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹7,001cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 58.47
Sector PE Ratio: -365.51
PE Ratio of this company is high but better than Sector’s PE. So it’s a Below Average PE than the peers of this company.
PB Ratio : 15.36
Sector PB Ratio : 5.23
PB Ratio of this company is high than Sector’s PB ratio. So it’s Average PB than the peers of this company.
Dividend Yield : 0.61%
Sector Dividend Yield : 0.60%
Dividend Yield of this company is high than Sector. Dividend of this company is Below Average than the peers of this company.
ROE (Return on equity) and ROCE (Return on capital equity) is Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
You can see the company growth clearly in the above table, in 2019 Net profit was 69.31 Cr. only and in 2020, It increased to 78.62 Cr. and in 2021, it is increased to 119.74 Cr.
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021 , Company have 706.70 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
Debt Level: Orient Electric Ltd debt to equity ratio (13.5%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if Orient Electric Ltd debt to equity ratio has reduced over the past 5 years.
Debt Coverage: Orient Electric Ltd debt is well covered by operating cash flow (695.8%).
Interest Coverage: Orient Electric Ltd interest payments on its debt are well covered by EBIT (24.7x coverage).
Share Holding Pattern
|Promotor Holding||Foreign Institution|
|Other Domestic Institutions||Retail & Others|
Above table showing there is no big change in Promotors holding which is 38.48% in June 2021. FIIs invested in June 2021 with 8.80% and retail investor is 36.47%.
Now We’ll check the return of the company, This company started from Rs. 136.65 at 16 may 2018. This company given 65.97% returns in last 1 year from 2020 to 3 Sep 2021.
Investment Checklist for Orient Electric Ltd.
- The company is currently profitable
- Earnings are forecast to grow by an average of 14.8% per year for the next 3 years
- Debt level is low and not considered a risk
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- Profit margins improved or orient electric became profitable
- They have sufficient analyst coverage
- No concerning events detected
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹23B)
- Market cap is meaningful (₹70B)
- Orient Electric does not have negative shareholders equity.
According to its historical performance we can predict stock target.
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
Hope you liked Our 4th company in the Series of Best stocks to buy in India for short term 2021. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss