India's Orient Electric Q1 profit rises on higher consumer durables demand

Orient Electric

02/08/2023 10:01

BENGALURU, Aug 2 (Reuters) - India's Orient Electric  ONTE.NS  reported a nearly 4% rise in first-quarter profit on Wednesday, as demand in its mainstay
consumer durables business, which includes fans and home appliances, increased.
    The New Delhi-based company said its profit for the April-June quarter rose to 196.9 million rupees ($2.38 million) from 189.5 million rupees a year ago.
    For further earnings highlights, click (Full Story)

KEY CONTEXT 
The June quarter is generally a peak demand period for companies with consumer durable businesses, which includes products like fans and air-conditioners. However,
analysts said unseasonal rains and inflationary pressures resulted in erratic demand for summer-centric products in the quarter, and that demand for cables and
wires was robust on the back of infrastructure spending.
    Peer Havells India  HVEL.NS  reported higher June-quarter profit on stronger demand for wires and cables, underscoring the rising infrastructure spending by the
federal government. 
    
    
    PEER COMPARISON
    
                                Valuation (next 12 months)   Estimates (next 12 months)                        Analysts' sentiment                     
                      RIC       PE            EV/EBITDA     Revenue growth  Profit growth   Mean rating*   # of analysts  Stock to price target**      Div yield (%)
 Orient Electric Ltd  ONTE.NS   36.77         18.90         14.13           51.03           Buy                       17             0.88                       0.65
 Havells India Ltd    HVEL.NS   52.08         34.69         15.00           29.57           Buy                       23             0.93                       0.57
 Crompton Greaves     CROP.NS   29.57         20.24         11.06           21.70           Buy                       36             0.87                       1.03
 Consumer                                                                                                                                              
 Electricals Ltd                                                                                                                                       
 Johnson              JCHA.BO   51.13         20.04         13.59           NULL            Buy                        4             0.90              NULL
 Controls-Hitachi                                                                                                                                      
 Air Conditioning                                                                                                                                      
 India Ltd                                                                                                                                             
 
    
    * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
    ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT



APRIL-JUNE STOCK PERFORMANCE
    

    -- All data from Refinitiv

    
    


($1 = 82.5750 Indian rupees)

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 (Reporting by Manvi Pant in Bengaluru; editing by Eileen Soreng)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))