Accumulate Orient Electric; target of Rs 270: Dolat Capital Market
Dolat Capital Market recommended accumulate rating on Orient Electric with a target price of Rs 270 in its research report dated January 14, 2021.
January 15, 2021 / 11:27 AM IST
Dolat Capital Market's research report on Orient Electric
OEL is a well-established player under the ECD and Lighting space, being the largest exporter and manufacturer of fans in India. OEL has more than 6 decades of experience, with an extensive network of more than 125,000 retailers across the country. The company has seen a strong growth over the past 3 years at CAGR ~12.6%, ECD business witnessed a CAGR of ~10.7% while lighting and switchgears business rapidly grew by ~18.3% CAGR due to lower base and now contributes to 27.7% of revenues. It has in house manufacturing capability, a strong brand name, control on supply chain and exclusive access to premium branded partnerships; it aims to exploit the growing opportune FMEG market banking on the growth in demand for fans and small appliances.
We are confident about the company’s growth story and assume a revenue CAGR of 8.5% FY20-23E and PAT CAGR of 25.8% FY20-23E.
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