Orient Electric - Q1 FY22 Result Report - YES Securities

(Rating: ADD, TP: Rs374, Upside: 13.8%)

- Orient Electric (ORIENTEL) delivered revenue growth of 136% yoy, 7% lower than estimates. Electrical consumer durables and Lighting and switch gears have registered growth of 213% and 31% respectively. Increased commodity prices and business mix change have resulted in 132bps yoy gross margin contraction.

- ECD saw robust growth on back of strong performance of Fans which grew by more than 200% yoy followed by small appliances which clocked growth of more than 100%. Export gained significant traction delivering growth higher than Q1FY20.

- Working capital has increased as compared to Mar'21 levels on back of readiness for the season and preparedness to service pent-up demand. The company ramped up inventory intentionally and did not promote any special collection schemes, hence the receivables remained at marginally higher levels as market recoveries and rotation of business were affected during the Covid 2nd wave.

- We expect FY21-24E Revenue/EBITDA/PAT CAGR of 14%/15%/14%, roll forward our valuation multiple to FY24E and arrive at PT of Rs374 valuing it at 45x FY24 EPS and maintain our ADD rating.

Shares of Orient Electric Limited was last trading in BSE at Rs. 319.4 as compared to the previous close of Rs. 322.7. The total number of shares traded during the day was 69645 in over 3433 trades.

The stock hit an intraday high of Rs. 328.95 and intraday low of 317.3. The net turnover during the day was Rs. 22422380.

Source : Equity Bulls

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