Orient Electric - Bright Prospects To Outweigh Near-Term Concern: Anand Rathi
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Anand Rathi Report
With its revenue/profit after tax up 42%/75% YoY and a 12.1% Ebitda margin, Orient Electric Ltd.’s shining performance continued in Q4, led by its business-to-consumer range (electrical consumer durables, C-lum).
Its Rs 2.42 billion net-cash will be used for capex (the South India plant to be commissioned in FY23) and working capital needs.
While near term uncertainty persists due to frequent lockdowns and raw material cost rises, management looks forward to a good recovery once markets open and to maintain higher Ebitda margins (10.8%/8.6% in FY21/FY20).
We see all our earlier key monitorables (portfolio/network and margin expansion, premiumisation, free cash flows) intact.
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