Eimco Elecon (India) Ltd. (EIMCOELECO) AI Stock Analysis

• Market Cap: ₹9.06B
• Dividend Yield: 0.31%
• Average Volume (3M): 17.09K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 1.65
• Revenue Growth: -21.56%
• EPS Growth: -18.58%
• Country: IN
• Employees: 124
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 9.28
• Shares Outstanding: 5,768,385
• 10 Day Avg. Volume: 31,604
• 30 Day Avg. Volume: 17,089
• PEG Ratio: 0.81
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 3.38
• P/FCF Ratio: 30.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹1,805.00 ▲(16.81% Upside)

Eimco Elecon's strong financial performance is a key strength, supported by robust revenue growth and a solid balance sheet. However, technical indicators suggest bearish momentum, which is a significant risk. The valuation is moderate, providing a balanced view of the stock's potential.

Positive Factors

Financial Stability

A strong balance sheet with low financial leverage and high equity ratio indicates financial stability, reducing risk and enhancing the company's ability to invest in growth opportunities.

Operational Efficiency

High gross profit margins reflect efficient cost management and strong operational performance, which can lead to sustained profitability and competitive advantage in the market.

Cash Generation

Improvement in operating cash flow and a solid free cash flow to net income ratio suggest effective cash generation, providing the company with the flexibility to reinvest in its business or return value to shareholders.

Negative Factors

Revenue Growth Decline

A decline in revenue growth can signal challenges in market demand or competitive pressures, potentially impacting the company's ability to sustain its market position and profitability over time.

Cash Flow Variability

Variability in cash flows from investing activities can create uncertainty in cash management, potentially affecting the company's ability to fund strategic initiatives consistently.

Net Profit Margin Concerns

While other margins have improved, the need to enhance net profit margin suggests room for better cost control or pricing strategies, which could impact long-term profitability.

Eimco Elecon (India) Ltd. Business Overview & Revenue Model

Company Description

Eimco Elecon (India) Ltd. (EIMCOELECO) is a leading manufacturer and supplier of equipment for the mining and construction industries in India. Established in 1962, the company specializes in providing a wide range of products including underground mining equipment, surface mining equipment, and various other machinery for material handling and processing. EIMCOELECO serves sectors such as coal, metal, and mineral mining, along with construction, helping clients enhance productivity and efficiency through innovative engineering solutions.

How the Company Makes Money

Eimco Elecon generates revenue primarily through the sale of mining and construction equipment. Its key revenue streams include the production and sale of specialized machinery such as continuous miners, shuttle cars, and load-haul-dump vehicles. The company also earns income from after-sales services, which include maintenance, repairs, and spare parts supply, providing ongoing support to its clients. Significant partnerships with major mining firms and construction companies enhance its market presence and contribute to stable revenue generation. Additionally, EIMCOELECO may benefit from government contracts and initiatives aimed at boosting mining and infrastructure development in India.

Eimco Elecon (India) Ltd. Financial Statement Overview

Summary

Eimco Elecon exhibits strong financial performance with consistent revenue and profit growth, efficient cost management, and a solid balance sheet. The company's low leverage and high equity ratio underscore its financial health. However, cash flow stability could be improved due to variability in investing activities.

Income Statement

Eimco Elecon has demonstrated robust revenue growth from 2020 to 2025, with a notable increase in gross profit margin and net income. The company achieved a substantial gross profit margin of 53.8% in 2025, reflecting efficient cost management. The EBIT and EBITDA margins also improved significantly, indicating strong operational performance. However, net profit margin could be further enhanced.

Balance Sheet

The company's balance sheet is strong, with a minimal debt-to-equity ratio, highlighting low financial leverage and solid equity backing. Stockholders' equity has steadily increased, showcasing investor confidence and financial stability. The equity ratio is high, further indicating a prudent financial structure. However, an increase in total liabilities in 2025 should be monitored.

Cash Flow

Operating cash flow has shown improvement, with a positive trend in free cash flow from 2023 to 2025. The free cash flow to net income ratio is solid, suggesting effective cash generation relative to earnings. However, fluctuations in investing cash flows indicate potential variability in cash management strategies.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.44B	2.46B	2.28B	1.73B	844.44M	1.25B
Gross Profit	1.27B	1.33B	1.00B	743.49M	181.87M	567.92M
EBITDA	699.75M	744.84M	583.57M	332.02M	182.34M	220.17M
Net Income	486.07M	489.07M	404.12M	195.25M	86.78M	112.75M
Balance Sheet
Total Assets	0.00	4.88B	4.50B	3.89B	3.65B	3.70B
Cash, Cash Equivalents and Short-Term Investments	359.31M	359.31M	145.26M	26.57M	724.75M	950.24M
Total Debt	0.00	1.29M	4.08M	6.37M	3.97M	16.89M
Total Liabilities	-4.32B	560.36M	641.95M	380.44M	326.20M	423.44M
Stockholders Equity	4.32B	4.32B	3.86B	3.51B	3.33B	3.27B
Cash Flow
Free Cash Flow	0.00	271.69M	68.93M	38.26M	-126.94M	-32.54M
Operating Cash Flow	0.00	332.78M	115.92M	66.64M	-110.14M	26.10M
Investing Cash Flow	0.00	-358.06M	-22.66M	-46.58M	79.69M	34.72M
Financing Cash Flow	0.00	-37.33M	-40.99M	-24.26M	-33.13M	-34.03M

Eimco Elecon (India) Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1545.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:EIMCOELECO, the sentiment is Negative. The current price of 1545.25 is below the 20-day moving average (MA) of 1580.27, below the 50-day MA of 1702.97, and below the 200-day MA of 1978.33, indicating a bearish trend. The MACD of -43.58 indicates Negative momentum. The RSI at 44.01 is Neutral, neither overbought nor oversold. The STOCH value of 45.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:EIMCOELECO.

Eimco Elecon (India) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDOTECH	74 Outperform	₹16.78B	19.95	―	―	34.48%	40.61%
PRECWIRE	68 Neutral	₹42.78B	38.33	―	0.48%	19.03%	36.25%
EIMCOELECO	64 Neutral	₹9.06B	21.80	―	0.31%	-21.56%	-18.58%
ELECON	64 Neutral	₹110.25B	21.36	―	0.41%	20.94%	45.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GUJAPOLLO	47 Neutral	₹5.00B	-167.74	―	0.48%	4.69%	-124.17%

Eimco Elecon (India) Ltd. Corporate Events

Eimco Elecon Publishes Unaudited Financial Results for September 2025

Eimco Elecon (India) Limited has announced the publication of its unaudited financial results for the quarter and half-year ending on September 30, 2025. The results were published in the Business Standard and Jai Hind newspapers, reflecting the company’s commitment to transparency and regulatory compliance. This announcement is likely to impact the company’s stakeholders by providing insights into its financial performance and operational efficiency, which could influence investor confidence and market positioning.

Eimco Elecon Approves Financial Results and Strategic Changes

Eimco Elecon (India) Ltd. announced the approval of its unaudited financial results for the quarter and half-year ending September 30, 2025, during a board meeting held on October 9, 2025. The board also approved changes to the company’s Memorandum of Association to align with the Companies Act, 2013, and reclassified Tamrock Great Britain Holdings Limited from ‘Promoter Group’ to ‘Public’. Additionally, the retirement of Mr. Mukulnarayan Dwivedi, the head of the Mining Equipment Business Vertical, was noted, and a postal ballot notice was approved to seek member approval for these changes.

Eimco Elecon Announces Strategic Updates and Leadership Change

Eimco Elecon (India) Ltd. announced several key decisions following its Board Meeting on October 9, 2025. The Board approved the unaudited financial results for the quarter and half-year ending September 30, 2025, and proposed updates to the company’s Memorandum of Association to align with the Companies Act, 2013. Additionally, the Board approved the reclassification of Tamrock Great Britain Holdings Limited from ‘Promoter Group’ to ‘Public,’ and acknowledged the retirement of Mr. Mukulnarayan Dwivedi, the head of the Mining Equipment Business Vertical. These changes reflect strategic adjustments aimed at enhancing corporate governance and operational efficiency.

Eimco Elecon Unveils New Logo Reflecting Brand Evolution

Eimco Elecon (India) Ltd. has announced a change in its company logo, effective from October 2, 2025. The new logo reflects the company’s brand evolution, symbolizing strength, determination, and innovation in heavy machinery. This change is part of a phased rollout, with both the new and existing logos being used concurrently during the transition period.