1. At a Glance
Orient Electric — the fan maker you probably forgot was publicly listed — is part of the CK Birla Group and operates in India’s consumer durables space. While its margins flicker like an old CFL bulb, it remains relevant thanks to decent return ratios, R&D focus, and loyal FIIs. But with P/E at 57+ and recent GST slaps, is it a cool stock or just hot air?
2. Introduction with Hook
Imagine buying a ceiling fan. It spins, it’s silent, and cools the room. Now imagine investing in a ceiling fan company — and the only thing spinning is your head from the valuation. Welcome to Orient Electric, where legacy meets market drama.
- Stock P/E: 57.7
- Market Cap: ₹4,820 Cr
- Q4 FY25 Net Profit: ₹31 Cr (up 144% YoY, but from a tiny base)
They’re in every Indian home, but are they in every savvy investor’s portfolio? The answer isn’t as breezy.
3. Business Model (WTF Do They Even Do?)
Orient Electric operates in four verticals:
- Fans – Market leader; the bread and butter
- Lighting – LED bulbs, CFLs, professional lighting
- Home Appliances – Heaters, coolers, kitchen appliances
- Switchgear – Not the sexiest, but a margin filler
Their reach? PAN-India with 1,25,000+ retail touchpoints. But their dependence on fans (over 60% of revenue) means if summers underperform or competition from Havells kicks in, they’re left sweating.
4. Financials Overview
Annual Revenue (FY25): ₹3,094 Cr
Net Profit (FY25): ₹83 Cr
Operating Margin: ~7%
ROCE: 17.9% | ROE: 12.5%
| FY | Revenue | Net Profit | OPM | ROE |
|---|---|---|---|---|
| FY22 | ₹2,448 Cr | ₹127 Cr | 9% | 15% |
| FY23 | ₹2,529 Cr | ₹76 Cr | 6% | 11% |
| FY24 | ₹2,812 Cr | ₹75 Cr | 5% | 11% |
| FY25 | ₹3,094 Cr | ₹83 Cr | 7% | 13% |
Margins improving, yes. But still a far cry from what you’d want at this valuation.
5. Valuation
Let’s do the math dance.
Current P/E: 57.66
Peer Median P/E: ~55
Net Profit (TTM): ₹83 Cr
EPS: ₹3.9
Scenario 1: Fair P/E = 35 → FV = ₹136
Scenario 2: Fair P/E = 45 (Growth hopes baked in) → FV = ₹175
Scenario 3: Market stays irrational = 60+ → FV = ₹235+
🧠 Fair Value Range: ₹135 – ₹175
Which means at ₹227, you’re paying a premium for branding, Birla backing, and fan nostalgia.
6. What’s Cooking – News, Triggers, Drama
- Resignations Galore: Multiple CXO and KMP exits in FY25
- GST Whiplash: ₹48 Cr in penalties between Jan–Feb 2025
- Upcoming Result (July 25): Market expecting QoQ growth
- New MD onboard: Management reset underway
- R&D investments up: Could boost new launches in premium fans, BLDC motors
Add some heat from summer demand, and you get a near-term kicker — if execution doesn’t stall.
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 21 |
| Reserves | 673 |
| Borrowings | 86 |
| Total Liabilities | 1,555 |
| Fixed Assets | 440 |
| CWIP | 5 |
| Investments | 14 |
| Other Assets | 1,096 |
Key Takeaways:
- Net Debt: Minimal
- Asset-light model (minimal CWIP)
- Reserves growing steadily
- Fixed assets doubled (₹236 Cr to ₹440 Cr) – plant upgrade or capacity bump?
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹190 Cr | -₹110 Cr | -₹66 Cr | ₹14 Cr |
| FY24 | ₹118 Cr | -₹171 Cr | -₹46 Cr | -₹98 Cr |
| FY25 | ₹88 Cr | -₹29 Cr | -₹72 Cr | -₹13 Cr |
Interpretation:
- Decent operating cash
- Heavy capex in FY24 (likely expansion)
- Cash position not alarming, but not free-flowing either
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 17.9% |
| ROE | 12.5% |
| OPM | 7% |
| EPS | ₹3.9 |
| Debt/Equity | < 0.2 |
| Inventory Days | 75 |
| Debtor Days | 60 |
| Cash Conversion Cycle | 31 days |
Verdict:
Ratios are okay-ish. You’re not buying an FMCG rocketship. You’re buying a stable, margin-challenged consumer durable play with hopes of revival.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | Net Profit |
|---|---|---|---|
| FY22 | ₹2,448 Cr | ₹231 Cr | ₹127 Cr |
| FY23 | ₹2,529 Cr | ₹151 Cr | ₹76 Cr |
| FY24 | ₹2,812 Cr | ₹145 Cr | ₹75 Cr |
| FY25 | ₹3,094 Cr | ₹204 Cr | ₹83 Cr |
EPS has recovered from FY23 lows, but EBITDA margin has seen a rollercoaster. Still way below peak levels.
11. Peer Comparison
| Company | CMP | P/E | ROCE | OPM | PAT (TTM) |
|---|---|---|---|---|---|
| Voltas | ₹1377 | 55.3 | 17.6% | 6.4% | ₹823 Cr |
| Blue Star | ₹1845 | 64.8 | 26.2% | 7.3% | ₹585 Cr |
| V-Guard | ₹405 | 57.0 | 19.5% | 9.2% | ₹310 Cr |
| Orient Elec | ₹227 | 57.7 | 17.9% | 6.6% | ₹83 Cr |
Insight:
You’re paying the same P/E for one-fifth the profit of a Voltas. That’s not premium pricing — that’s delusion tax.
12. Miscellaneous – Shareholding, Promoters
| Stakeholder | Jun 2025 |
|---|---|
| Promoters | 38.31% |
| FIIs | 6.87% |
| DIIs | 28.10% |
| Public | 26.64% |
Changes:
- Promoters static
- FIIs + DIIs holding strong = smart money not panicking
- Public float tightening = good for price momentum
Also worth noting: Shareholder count dropped from 1.02L to 81k — cleanup or exit?
13. EduInvesting Verdict™
Orient Electric is a classic example of a great brand stuck in a low-growth hamster wheel. It’s debt-light, dividend-giving, and margin-wounded — like a middle-class dad who never skips EMI but avoids adventure sports.
The company needs a breakout product, a margin uptick, or a cost-control miracle. Until then, it’s more of a valuation correction waiting to happen than a compounding story.
That said — if summer hits hard and management stops resigning like it’s musical chairs, things might just cool off the investor anxiety.
Metadata
– Written by EduInvesting Research | 18 July 2025
– Tags: Orient Electric Ltd: Fans, Fights, and Falling Margins — Can This CK Birla Baby Recharge Its Mojo?
1. At a Glance
Orient Electric — the fan maker you probably forgot was publicly listed — is part of the CK Birla Group and operates in India’s consumer durables space. While its margins flicker like an old CFL bulb, it remains relevant thanks to decent return ratios, R&D focus, and loyal FIIs. But with P/E at 57+ and recent GST slaps, is it a cool stock or just hot air?
2. Introduction with Hook
Imagine buying a ceiling fan. It spins, it’s silent, and cools the room. Now imagine investing in a ceiling fan company — and the only thing spinning is your head from the valuation. Welcome to Orient Electric, where legacy meets market drama.
- Stock P/E: 57.7
- Market Cap: ₹4,820 Cr
- Q4 FY25 Net Profit: ₹31 Cr (up 144% YoY, but from a tiny base)
They’re in every Indian home, but are they in every savvy investor’s portfolio? The answer isn’t as breezy.
3. Business Model (WTF Do They Even Do?)
Orient Electric operates in four verticals:
- Fans – Market leader; the bread and butter
- Lighting – LED bulbs, CFLs, professional lighting
- Home Appliances – Heaters, coolers, kitchen appliances
- Switchgear – Not the sexiest, but a margin filler
Their reach? PAN-India with 1,25,000+ retail touchpoints. But their dependence on fans (over 60% of revenue) means if summers underperform or competition from Havells kicks in, they’re left sweating.
4. Financials Overview
Annual Revenue (FY25): ₹3,094 Cr
Net Profit (FY25): ₹83 Cr
Operating Margin: ~7%
ROCE: 17.9% | ROE: 12.5%
| FY | Revenue | Net Profit | OPM | ROE |
|---|---|---|---|---|
| FY22 | ₹2,448 Cr | ₹127 Cr | 9% | 15% |
| FY23 | ₹2,529 Cr | ₹76 Cr | 6% | 11% |
| FY24 | ₹2,812 Cr | ₹75 Cr | 5% | 11% |
| FY25 | ₹3,094 Cr | ₹83 Cr | 7% | 13% |
Margins improving, yes. But still a far cry from what you’d want at this valuation.
5. Valuation
Let’s do the math dance.
Current P/E: 57.66
Peer Median P/E: ~55
Net Profit (TTM): ₹83 Cr
EPS: ₹3.9
Scenario 1: Fair P/E = 35 → FV = ₹136
Scenario 2: Fair P/E = 45 (Growth hopes baked in) → FV = ₹175
Scenario 3: Market stays irrational = 60+ → FV = ₹235+
🧠 Fair Value Range: ₹135 – ₹175
Which means at ₹227, you’re paying a premium for branding, Birla backing, and fan nostalgia.
6. What’s Cooking – News, Triggers, Drama
- Resignations Galore: Multiple CXO and KMP exits in FY25
- GST Whiplash: ₹48 Cr in penalties between Jan–Feb 2025
- Upcoming Result (July 25): Market expecting QoQ growth
- New MD onboard: Management reset underway
- R&D investments up: Could boost new launches in premium fans, BLDC motors
Add some heat from summer demand, and you get a near-term kicker — if execution doesn’t stall.
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 21 |
| Reserves | 673 |
| Borrowings | 86 |
| Total Liabilities | 1,555 |
| Fixed Assets | 440 |
| CWIP | 5 |
| Investments | 14 |
| Other Assets | 1,096 |
Key Takeaways:
- Net Debt: Minimal
- Asset-light model (minimal CWIP)
- Reserves growing steadily
- Fixed assets doubled (₹236 Cr to ₹440 Cr) – plant upgrade or capacity bump?
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹190 Cr | -₹110 Cr | -₹66 Cr | ₹14 Cr |
| FY24 | ₹118 Cr | -₹171 Cr | -₹46 Cr | -₹98 Cr |
| FY25 | ₹88 Cr | -₹29 Cr | -₹72 Cr | -₹13 Cr |
Interpretation:
- Decent operating cash
- Heavy capex in FY24 (likely expansion)
- Cash position not alarming, but not free-flowing either
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 17.9% |
| ROE | 12.5% |
| OPM | 7% |
| EPS | ₹3.9 |
| Debt/Equity | < 0.2 |
| Inventory Days | 75 |
| Debtor Days | 60 |
| Cash Conversion Cycle | 31 days |
Verdict:
Ratios are okay-ish. You’re not buying an FMCG rocketship. You’re buying a stable, margin-challenged consumer durable play with hopes of revival.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | Net Profit |
|---|---|---|---|
| FY22 | ₹2,448 Cr | ₹231 Cr | ₹127 Cr |
| FY23 | ₹2,529 Cr | ₹151 Cr | ₹76 Cr |
| FY24 | ₹2,812 Cr | ₹145 Cr | ₹75 Cr |
| FY25 | ₹3,094 Cr | ₹204 Cr | ₹83 Cr |
EPS has recovered from FY23 lows, but EBITDA margin has seen a rollercoaster. Still way below peak levels.
11. Peer Comparison
| Company | CMP | P/E | ROCE | OPM | PAT (TTM) |
|---|---|---|---|---|---|
| Voltas | ₹1377 | 55.3 | 17.6% | 6.4% | ₹823 Cr |
| Blue Star | ₹1845 | 64.8 | 26.2% | 7.3% | ₹585 Cr |
| V-Guard | ₹405 | 57.0 | 19.5% | 9.2% | ₹310 Cr |
| Orient Elec | ₹227 | 57.7 | 17.9% | 6.6% | ₹83 Cr |
Insight:
You’re paying the same P/E for one-fifth the profit of a Voltas. That’s not premium pricing — that’s delusion tax.
12. Miscellaneous – Shareholding, Promoters
| Stakeholder | Jun 2025 |
|---|---|
| Promoters | 38.31% |
| FIIs | 6.87% |
| DIIs | 28.10% |
| Public | 26.64% |
Changes:
- Promoters static
- FIIs + DIIs holding strong = smart money not panicking
- Public float tightening = good for price momentum
Also worth noting: Shareholder count dropped from 1.02L to 81k — cleanup or exit?
13. EduInvesting Verdict™
Orient Electric is a classic example of a great brand stuck in a low-growth hamster wheel. It’s debt-light, dividend-giving, and margin-wounded — like a middle-class dad who never skips EMI but avoids adventure sports.
The company needs a breakout product, a margin uptick, or a cost-control miracle. Until then, it’s more of a valuation correction waiting to happen than a compounding story.
That said — if summer hits hard and management stops resigning like it’s musical chairs, things might just cool off the investor anxiety.
Metadata
– Written by EduInvesting Research | 18 July 2025
– Tags: Orient Electric, CK Birla, Consumer Durables, Midcap, Fan Stocks, P/E Bubble, India Consumer Theme
