Orient Electric (ORIENTELEC)

FairStock Score: 29/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let me assess Orient Electric the way I would assess any purchase: what kind of business am I buying, and what am I paying? The business side is not bad. Debt is low, with D/E at 0.17, and the company earns a ROCE of 17.89% and an ROE of 13.35%. Sales have grown by 10.97% and profit by 16.38%, and the Piotroski score of 7/9 suggests sound financial mechanics. But valuation is where this deal fails. At ₹187.60, the P/E is 42.72, nearly 43 times earnings. Book value is only ₹31.86, so I am paying 5.89 times book for a business whose latest quarter delivered only ₹26 Cr net profit on ₹906 Cr sales—a margin of about 2.9%. That is thin, and the growth, while positive, gives me no cushion: the PEG ratio of 3.12 means I am overpaying for each unit of future growth. Dividend yield of 0.81% is negligible, and the FairStock Score of 18/100 rightly flags risk. Promoter holding of 38.31% is not compelling either. A high multiple requires perfect execution; appliances is competitive and margin-fragile. The margin of safety is absent. Benjamin Graham taught me to buy with a cushion, and this price offers none. I can admire the balance sheet and the double-digit profit growth, but I cannot pay 43 times earnings for it. I would keep this on my watchlist and wait for a better price, or for proof that margins and returns can rise significantly. No matter how good the business, price still matters.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer