(Reuters) – India’s Orient Electric, which makes a wide variety of home appliances, reported a near 12% rise in third-quarter profit on Wednesday, helped by strong demand during a period that included the festive season.
Shares of the company rose 4% after the results.
The company’s profit rose to 271.7 million rupees ($3.14 million) in the quarter ended Dec. 31, from 243.3 million rupees a year ago.
Its revenue from operations grew nearly 9% to 8.17 billion rupees during the quarter.
Total expenses increased 8% during the quarter.
For further earnings highlights, click [Full story]
KEY CONTEXT
Analysts have said the demand for home appliances held up in the October to December quarter, which includes many key festivals.
However, consumer electrical goods makers have been grappling with fluctuations in commodity prices and heightened competition, which have squeezed their margins.
Polycab missed profit estimates for the quarter as their wires business was impacted by commodity price fluctuations.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBI Price/ Revenue Profit Mean # of Stock to Div
TDA Sales growth (%) growth (%) rating* analysts price yield
target** (%)
Orient Electric 35.56 18.29 1.41 13.91 49.19 Buy 14 0.81 0.66
Havells India 53.07 36.12 4.07 14.91 23.07 Buy 24 0.82 0.66
Crompton Greaves 31.21 21.30 2.39 12.35 25.93 Buy 32 0.70 0.89
Consumer Electricals
Polycab India 37.73 25.95 4.00 18.02 18.98 Buy 26 0.76 0.53
* 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
OCTOBER-DECEMBER STOCK PERFORMANCE
— All data from LSEG
— $1 = 86.4740 Indian rupees
(Reporting by Ashna Teresa Britto; Editing by Savio D’Souza and Mrigank Dhaniwala)
