Be a PRO & get up to 50% off on select brands. Explore Now

Accumulate Orient Electric; target of Rs 290: Dolat Capital Market

Dolat Capital Market recommended accumulate rating on Orient Electric with a target price of Rs 290 in its research report dated January 29, 2021.

February 03, 2021 / 04:47 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Dolat Capital Market's research report on Orient Electric


Q3 revenues, EBITDA and PAT grew by 25%, 86% and 173% YoY at Rs6.2bn, Rs842mn and Rs519mn respectively driven by strong growth in ECD. Cash balance on books remained healthy at Rs1.7bn compared to Rs842mn in Q2FY21 with healthy working capital management. Orient continued to grow under ECD segment with a growth of 42% in Q3 and higher margins by 250bps at 14.9%, though lighting declined 8% due to slowdown in B2B. Better ECD mix and focus on cost rationalization helped company to continue growth trajectory. Priority remains to shift towards optimum mix with 75% of revenues from ECD business vs 65%a year back; WC days have fallen to 18 days’ vs 60 days in FY20.


Outlook


We like the premiumisation story of Orient and value it at 46x Sep22E, at an Accumulate rating with a TP of Rs290.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Feb 3, 2021 04:47 pm

stay updated

Get Daily News on your Browser
Sections