Orient Electric - Long Term Focus, Premiumisation Are Future Growth Levers: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.The focus of the management remains on long term performance, with premiumisation as the key theme. Current strategic decisions are expected to bear fruit from H2 FY26 onwards.Ceiling fans line has been operationalised at the Hyderabad plant. It is expected to stabilize by the beginning of Q4 FY25. Kitchen Appliance demand is currently slow – did not pick up as expected. Lighting demand too did not pick up as expected (from August 2024), and therefore, the company had to offer additional schemes to push the product. Orient Electric Ltd. is trying to lay more emphasis on channel financing / vendor financing to grow its market. While its direct-to-market strategy is a step in the right direction, stiff competition and consequently, margin expansion in the near term, remains a challenge. We maintain Hold with a revised target price of Rs 280. This implies a PE of 38 times on Sept’26E EPS and it is at ~35% discount to the five-year historical average PE multiple on a one- year forward basis. The significant discount is on account of frequent senior management changes and consistent margin decline in the past couple of years..Click on the attachment to read the full report:.Happiest Minds - Digital Business To Shine In An Improved Macro: Nirmal Bang.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Orient Electric - Long Term Focus, Premiumisation Are Future Growth Levers: Nirmal Bang

While the brokerage believes that the company is on the right track in terms of correcting short term gaps for better long-term prospects, near term challenges continues.

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Orient Electric - Long Term Focus, Premiumisation Are Future Growth Levers: Nirmal Bang

While the brokerage believes that the company is on the right track in terms of correcting short term gaps for better long-term prospects, near term challenges continues.

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