Hello and welcome back to one more interesting article wherein We’ll discuss the Orient electric share which was analysed earlier and has achieved the target predicted by us in a span of 93 trading sessions.
Let’s check the parameters which helped Orient electric share to achieve its total target of 30% approximately in 93 trading sessions.
BUSINESS ANALYSIS FOR TARGET ACHIEVEMENT
Orient electric is the 3rd largest company in the fans segment and has been in the market for the past 60 years.
Orient electric is among the ‘Fortune India 500’ companies with a presence in over 40 countries.
Company has brought in two new fans namely Summer Breeze Pro and Rapid Air and also has some plans to refresh the existing fan named Twister.
Orient Electric eyes smaller towns and rural areas for growth in fans business and to increase its market share in the next 12 months.
The company has a well-organised distribution network reaching to 1,25,000 retail outlets and a great service network in more than 450 cities.
Orient electric has a market share of 20% in fans sector and manufactures 10 million units per annum in Kolkata and Faridabad plants.
Electrical consumer durables segment’s revenue was up at ₹ 454.50 Cr from ₹ 304.35 Cr. This vertical saw a growth of 38.2% which is a commendable achievement by the company.
Switchgear and lighting division saw a sales growth of 35.7% on year on year basis at ₹ 175 Cr.
With the new orders coming up the export market of the company also opened up while the business related to tender remained a bit sluggish.
Currently the revenue of Orient Electric is largely driven by fans, but the company is striving to expand its other products for improving the business.
Demand was definitely rising but electronic firms were battling with elevated commodity costs. These raw material costs were elevated in the April-June quarter which definitely impacted the gross margins in the September quarter of 2021.
FINANCIAL ANALYSIS FOR TARGET ACHIEVEMENT
Figures in Rs. Crores
|Quarterly Results||Mar 2019||Jun 2019||Sep 2019||Dec 2019||Mar 2020||Jun 2020||Sep 2020||Dec 2020||Mar 2021||Jun 2021||Sep 2021|
|Profit before tax||60||29||8||29||48||-35||43||69||84||7||47|
|EPS in Rs||1.82||0.89||0.23||0.9||1.69||-1.29||1.53||2.45||2.95||0.24||1.64|
For the quarter ended 30-09-2021, the company reported a sales of ₹ 594 Cr which is an increase of 27% from the sales registered in the year ago period.
Expense has increased from the previous quarter, but the company is utilizing it for sales growth which is evident from the sales results.
In the quarter ended 30-09-21, the net profit increased drastically from ₹ 5 Cr to ₹ 35 Cr.
Reserves have increased gradually and there is a great interest shown by the investors in Orient electric share.
In the quarter ended 30-09-21, the borrowings have gradually reduced from the year 2017.
Figures in Rs. Crores
|Balance Sheet||Mar 2017||Mar 2018||Mar 2019||Mar 2020||Mar 2021||Sep 2021|
SHARE HOLDING SYNOPSIS
|Share Holding||Mar 2019||Jun 2019||Sep 2019||Dec 2019||Mar 2020||Jun 2020||Sep 2020||Dec 2020||Mar 2021||Jun 2021||Sep 2021|
Promoters have maintained their position in this stock with an average % of 38.52.
DIIs have increased their stake in this company.
Now, let’s deep dive into the technicalities of Orient electric share.
CHART PATTERN ANALYSIS
During the earlier analysis we did highlight the formation of the cup and handle pattern.
Click here for previous analysis Orient electric share.
Orient electric did achieve its target of ₹ 400.50 and rallied till ₹ 408 showcasing a target achievement of 30%.
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