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

• Market Cap: ₹8.79B
• Dividend Yield: 0.33%
• Average Volume (3M): 17.09K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.53
• Revenue Growth: -21.56%
• EPS Growth: -18.58%
• Country: IN
• Employees: 124
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 21.70
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ₹1,981.00 ▲(21.71% Upside)
• Action: Upgraded Date: 01/09/26
• Date: Action: Upgraded 01/09/26

The score is primarily driven by strong financial performance (growth, rising margins, and low leverage). This is tempered by mixed technicals (short-term strength but below longer-term moving averages) and only average valuation support given a moderate P/E and very low dividend yield.

Positive Factors

Low Financial Leverage

A minimal debt-to-equity ratio and rising shareholders' equity provide durable financial flexibility. Low leverage supports bidding on capital-intensive mining projects, cushions cyclical revenue swings, and reduces refinancing risk, enabling steady capital allocation to growth and services over months.

High & Improving Margins

Sustained high gross margins and rising operating margins indicate durable cost control and favorable product mix in engineered equipment. These structural margins enhance reinvestment capacity for R&D and aftermarket services, helping preserve profitability through industry cycles.

Improving Cash Generation

Improving operating cash flow and positive free cash flow trends signal reliable internal funding for capex, spare-parts inventory and service expansion. Strong cash conversion reduces reliance on external financing and supports durable returns and investment in long-term contracts.

Negative Factors

Recent Revenue Decline

A recent near-term revenue decline implies demand softness or project timing lags. If persistent, lower top-line trends can strain fixed-cost absorption in engineered equipment, reduce backlog conversion, and pressure margins and investment plans over the medium term.

EPS Growth Weakness

Negative EPS growth suggests earnings pressure from margin compression, pricing, or one-off items. Slowing earnings growth reduces retained earnings for reinvestment, limits buffer against cyclical downturns, and may constrain long-term improvements in capacity or services.

Rising Total Liabilities to Monitor

An uptick in total liabilities could erode the cushion from low leverage if it continues. Rising liabilities raise financing and interest risks, potentially constraining capital allocation and increasing vulnerability if project cash flows weaken in a cyclical mining market.

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

Company Description

Eimco Elecon (India) Limited manufactures and sells equipment for mining and construction sector in India. It offers side dump loaders, load haul dumpers, coal haulers, roof bolters, shuttle cars, continuous miner package, universal drill machines, articulated wheel loaders, foundation equipment, low profile dump trucks, rocker shovel loaders, and underground transport systems, as well as piling rigs, air motors, and chair lift man riding systems. The company also exports its products to South East Asia and Africa. Eimco Elecon (India) Limited was incorporated in 1974 and is headquartered in Vallabh Vidyanagar, India.

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

Strong fundamentals supported by robust revenue growth, expanding profitability (notably high 2025 gross margin), and improved EBIT/EBITDA margins. Balance sheet is a key strength with low leverage and rising equity, while cash flow is improving but shows some variability in investing flows.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.11B	2.46B	2.28B	1.73B	844.44M	1.25B
Gross Profit	1.15B	1.33B	1.00B	743.49M	181.87M	567.92M
EBITDA	536.98M	744.84M	583.57M	332.02M	182.34M	220.17M
Net Income	408.97M	489.07M	404.12M	195.25M	86.78M	112.75M
Balance Sheet
Total Assets	5.00B	4.88B	4.50B	3.89B	3.65B	3.70B
Cash, Cash Equivalents and Short-Term Investments	205.35M	359.31M	145.26M	26.57M	724.75M	950.24M
Total Debt	16.89M	1.29M	4.08M	6.37M	3.97M	16.89M
Total Liabilities	507.07M	560.36M	641.95M	380.44M	326.20M	423.44M
Stockholders Equity	4.49B	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: 1627.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1627.65 is above the 20-day moving average (MA) of 1618.46, above the 50-day MA of 1616.70, and below the 200-day MA of 1969.35, indicating a bearish trend. The MACD of -26.14 indicates Positive momentum. The RSI at 38.63 is Neutral, neither overbought nor oversold. The STOCH value of 56.76 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
EIMCOELECO	74 Outperform	₹8.79B	18.42	―	0.33%	-21.56%	-18.58%
ELECON	73 Outperform	₹91.13B	37.50	―	0.41%	20.94%	45.63%
INDOTECH	68 Neutral	₹14.03B	16.63	―	―	34.48%	40.61%
PRECWIRE	68 Neutral	₹61.34B	28.77	―	0.48%	19.03%	36.25%
SHANTIGEAR	66 Neutral	₹34.08B	55.74	―	1.06%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GUJAPOLLO	47 Neutral	₹4.51B	204.12	―	0.48%	4.69%	-124.17%