Orient Electric Upgraded to 'Hold' by MarketsMOJO, Strong Management Efficiency and Low Debt Ratio Cited

Orient Electric, a midcap company in the consumer durables - electronics industry, has recently been upgraded to a 'Hold' by MarketsMOJO on October 14, 2024. This decision was based on several factors, including the company's high management efficiency with a ROE of 18.80%, indicating strong performance.

Additionally, Orient Electric has a low Debt to EBITDA ratio of 0.30 times, showcasing its ability to service debt effectively. The stock is also currently in a mildly bullish range, with the technical trend improving from sideways on October 9, 2024. The RSI, a key technical factor, has been bullish since the same date.

Furthermore, the company has a high institutional holding of 34.97%, indicating that these investors have better resources and capabilities to analyze the company's fundamentals compared to retail investors. This stake has also increased by 1.25% over the previous quarter.

However, Orient Electric has shown poor long-term growth, with an annual rate of -9.90% in operating profit over the last 5 years. In the latest quarter, the company's PAT (9M) has grown at a rate of -33.04%. Additionally, with a ROE of 8.6, the stock is currently trading at a very expensive valuation with a price to book value of 7.9. This is a premium compared to its average historical valuations.

In the past year, while the stock has generated a return of 4.77%, its profits have fallen by -28%. This underperformance is also reflected in the stock's returns compared to the market (BSE 500), which has generated a return of 35.61% in the last year.

Overall, Orient Electric's stock has been upgraded to a 'Hold' based on its strong management efficiency and ability to service debt, but its poor long-term growth and expensive valuation should also be considered by investors.