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Check Before You Invest : Onida Electronics Ltd

BSE: 500279 NSE: ONIDA ISIN: INE831A01028
  |   Sector:  Consumer Durables   |   Industry:  Consumer Durables - Electronics

Snapshot

Q.1 Which industry/sub-sector does Onida Electronics Ltd belong to?
Onida Electronics Ltd belongs to the Consumer Durables sector, operating specifically within the Consumer Durables - Electronics segment.
Q.2 Is Onida Electronics Ltd a good quality company?
Onida Electronics Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Onida Electronics Ltd undervalued or overvalued?
Onida Electronics Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - -
Price to Book 5.8 2.62
Price to Sales 2.09 0.48
EV to EBITDA -37.14 20.56
Q.4 Is Onida Electronics Ltd a good buy now?
Onida Electronics Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Onida Electronics Ltd?
Onida Electronics Ltd revenue growth is -22.9% for FY-2025, which is below its 5-year CAGR of 4.32%, indicating slower growth.

Q.2 Gross Profit margin of Onida Electronics Ltd?
Onida Electronics Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.6% for FY-2025, which is above its 5-year median of 0.1%, indicating increasing margins.

Q.3 Operating Profit Margin of Onida Electronics Ltd?
Onida Electronics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.24% for FY-2025, which is above its 5-year median of 0.55% indicating increasing margins.

Q.4 Net Profit Margin of Onida Electronics Ltd?
Onida Electronics Ltd Net Profit Margin is -0.31% for FY-2025, is above its 5-year median of -1.12%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 0.6 0.1
Operating Profit Margin (%) 1.24 0.55
Net Profit Margin (%) -0.31 -1.12

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Onida Electronics Ltd?
Onida Electronics Ltd Return on Asset is -0.42%, which is above its 5-year historical median of -2.02%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Onida Electronics Ltd?
Onida Electronics Ltd Return on capital employed is 5.37% for FY-2025, which is above its 5-year historical median of -0.58%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Onida Electronics Ltd?
Onida Electronics Ltd Return on equity is -1.82% for FY-2025, which is above its 5-year historical median of -6.33%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Onida Electronics Ltd?
Onida Electronics Ltd Cash conversion cycle is 50 days, below its 5-year historical median of 58 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.36 1.74
ROE (%) -1.82 -6.33
ROCE (%) 5.37 -0.58
Cash Conversion Cycle 50 days 58 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Onida Electronics Ltd?
Onida Electronics Ltd Debt-to-Equity ratio is 0.81, which is above the industry average of 0.23, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Onida Electronics Ltd?
Onida Electronics Ltd Debt to cash flow from operations is 3.28, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Onida Electronics Ltd?

Q.1 Promoter shareholding and pledge status of Onida Electronics Ltd?
Promoters hold 40.51% of the Onida Electronics Ltd, with 28.42% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Onida Electronics Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Onida Electronics Ltd vs industry peers?
Onida Electronics Ltd revenue CAGR is 4.32%, compared to the industry median CAGR of 7.75%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -22.9 7.8
Gross Profit Growth (%) 0 21.4
Operating Profit Growth (%) 0 9.9
Net Profit Growth (%) 0 17.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.36 1.13
ROE (%) -1.82 4.38
ROCE (%) 5.37 10
Cash Conversion Cycle (days) 49.99 49

Valuation & price assessment

Q.1 Stock return of Onida Electronics Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 13.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
13.7% 14.9% 25% 114.7%
Q.2 Valuation ratios of Onida Electronics Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings - - 45.73
Price to Book 5.8 2.62 3.46
Price to Sales 2.09 0.48 1.15
EV to EBITDA -37.14 20.56 19.82

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