4 ORIENTELEC share price target reports by brokerages below. See what is analyst's view on ORIENTELEC share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
EBIT margin of the ECD segment declined 90bps YoY to 9.3% owing to minor impact from the disposal of slow moving stocks of appliances and consumer promotional schemes. EBIT margin of the L&S segment grew 70bps YoY to 7.2% despite price erosion in LED lamps. Adjusted tax rate at 34% (vs. our assumption of 26%) as the company is still evaluating shift to new income taxes regime led to 29% YoY decline in PAT to Rs49mn (adjusted for one-time provision, PAT was up 18% YoY). We maintain Buy rating on the stock with a revised target price of Rs209 (Rs197 earlier) based on 35x September 2021 EPS.
Orient Electric is a strong financial franchise with FY19-FY22E CAGR of 15% revenue, 23% EBITDA (aided by 150bps margin expansion) and 26% PAT (aided by tax cuts). It operates at healthy return ratios (RoCE/RoE of 29%/24% in FY19), fixed asset turn (7.8x) and cash flows. We assign Buy rating to Orient Electric with a 33x P/E on September 2021 EPS with a target price of Rs197. We have assigned 18% P/E discount to Havells India and 10% P/E discount to V-Guard Industries owing to the lower margin profile of Orient Electric even though it offers the highest earnings growth. At our assigned P/E of 33x, Orient Electric is valued at a PEG ratio of 1.3x.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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