Arihant Capital's research report on Orient Electric
Orient Electric Ltd (OEL) reported strong numbers, Q1FY23 revenue grew by 47.2% YoY (-17.5% QoQ) to INR 622cr vs our estimates of INR 626cr. EBITDA stood at INR 38cr (+70.8% YoY/-52.7% QoQ) vs our estimates of INR 63cr, EBITDA Margin improved by 85 bps to 6.1% vs 5.3% in Q1FY22. The raw material cost in terms of sales stood at 72.2% vs 72.7% in Q1FY22. The Employee cost in terms of sales stood at 7.5% vs 11.1% vs Q1FY22. The other expenses are sharply increased in terms of sales stood at 14.1% vs 11% in Q1FY22. PAT stood at INR 19cr (+283.9% YoY/-61.7% QoQ) vs our estimates of INR 35cr, PAT Margin improved by 187 bps to 3% vs 1.2% in Q1FY22.
At the CMP of INR 276 per share, the stock is trading at a P/E multiple of 36.2x/31.1x its FY23E/FY24E EPS of INR 7.6/8.9 respectively. We have a “ACCUMULATE” rating at a TP of INR 321 per share; valued at PE multiple 36.2x and its FY24E EPS; an upside of 16.3%.
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