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Orient Electric (OEL) | Will This Give Returns Like Havells India ? | Complete Fundamental Analysis


Orient Electric | Complete Fundamental Analysis | Stock Analysis | OEL Stock
Orient Electric

Introduction


Orient Electric Limited (OEL) BSE: 541301 is part of the diversified Indian conglomerate CK Birla Group. It is one of the leading consumer electrical brands in India selling fans, lighting, home appliances and switchgears. It was formerly a division of the Orient Paper & Industries (BSE: 502420), which itself is a subsidiary of the $1.8 billion CK Birla Group. The Scheme of Arrangement between Orient Paper & Industries Limited and Orient Electric Limited and their respective shareholders and creditors was sanctioned by National Company Law Tribunal, Kolkata Bench on 9 November 2017. The company got listed on the Bombay Stock Exchange (BSE) & National Stock Exchange (NSE) on 14 May 2018.


Orient Electric Limited has manufacturing facilities in Kolkata, Faridabad and Noida. Orient Electric exports fans from India to over 35 international markets.


Strengths

Weaknesses

Opportunities


There is a lot of scope for growth from the rural market with consumption expected to grow in these areas as penetration of brands increases. Demand for durables like refrigerators and consumer electronic goods are likely to witness an increased demand in the coming years, especially in the rural areas as the Government plans to invest significantly in rural electrification.


Growing awareness, easier access, and changing lifestyle have been the key growth drivers for the consumer market. The Government of India's policies and regulatory frameworks, such as relaxation of license rules and approval of 51% Foreign Direct Investment (FDI) in multi-brand and 100% in single-brand retail, are some of the major growth drivers for the consumer market. According to the Department for Promotion of Industry and Internal Trade (DPIIT), between April 2000 - March 2020, FDI inflow in the electronics sector stood at US$ 2.79 billion.


On November 11, 2020, Union Cabinet approved the Production-Linked Incentive (PLI) scheme in 10 key sectors (including electronics and white goods) to boost India’s manufacturing capabilities, exports and promote the ‘Atmanirbhar Bharat’ initiative.

Indian appliance and consumer electronics (ACE) market reached Rs. 76,400 crore (US$ 10.93 billion) in 2019. Appliances and consumer electronics industry is expected to double to reach Rs. 1.48 lakh crore (US$ 21.18 billion) by 2025.


Key Positions of Orient Electric Limited

Management

  • Promoters

CK Birla Group

  • Managing Director & CEO

Rakesh Khanna leads the position of MD & CEO of Orient Electric Limited.

  • Chairman and Vice Chairman

Chandra Kant Birla serves as Chairman and Desh Deepak Khetrapal as Vice Chairman of Orient Electric Limited.


Shareholding Pattern as on 31st December, 2020


Orient Electric Shareholding Pattern
Orient Electric Shareholding Pattern

Returns on Share


52 Week Higher Level: 345.00 INR


52 Week Lower Level: 151.95 INR


Peers


HUL, Dabur India, Godrej Consumer, Marico, etc.



Sources


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