Orient Electric - Cooler Weather Expected To Moderate Fans Sales: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.We recently interacted with the management of Orient Electric Ltd.Despite primary sales of Fans picking up from November 2023 to mid-February 2024, unfavorable weather plus tepid consumer demand has led to slowdown in secondary sales. Channel partners have turned cautious and have reduced their inventory levels. They will replenish the same as and when necessary. Channel de-stocking continues in the lighting segment due to continuous value erosion. The B2C Lighting industry is expected to contract by at least 10% in FY24. Management expects stabilisation from H2 FY24. We maintain Buy with a revised target price of Rs 230, valuing it at 30 times March-26E earnings per share. The stock has seen a sharp correction lately and therefore entry at current market price offers a favorable risk-reward ratio. While DTM strategy is a step in the right direction, tepid B2C demand, any significant delay in the full commissioning of the Hyderabad plant and delay in on-boarding the new Managing Director and Chief Executive Officer remain key risks to the overall business strategy..Click on the attachment to read the full report:.Blinkit To Zepto's Quest For Profit Runs Into Flipkart, Irks Buyers.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Orient Electric - Cooler Weather Expected To Moderate Fans Sales: Nirmal Bang

While primary sales of fans were healthy from November 2023 till mid-Feb-24, secondary sales have been tepid

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