Elecon Engineering Co. Ltd. (ELECON) AI Stock Analysis

• Market Cap: ₹122.48B
• Dividend Yield: 0.35%
• Average Volume (3M): 42.39K
• Price to Earnings (P/E): 23.7
• Beta (1Y): 1.54
• Revenue Growth: 20.07%
• EPS Growth: 45.28%
• Country: IN
• Employees: 1,974
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Machinery
• EPS (TTM): 7.82
• Shares Outstanding: 224,399,930
• 10 Day Avg. Volume: 23,841
• 30 Day Avg. Volume: 42,388
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹655.00
• Price Target Upside: 15.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ₹655.00 ▲(15.43% Upside)

Elecon Engineering's strong financial performance is a key strength, indicating robust growth and financial stability. However, technical analysis shows bearish signals, and the valuation suggests fair market pricing. The absence of earnings call insights or corporate events leaves fundamental analysis as the primary driver of the stock score.

Elecon Engineering Co. Ltd. Business Overview & Revenue Model

Company Description

Elecon Engineering Co. Ltd. (ELECON) is a leading engineering company based in India, specializing in the manufacturing and supply of a wide range of industrial gears, material handling equipment, and transmission products. Serving diverse sectors such as power, steel, cement, sugar, and petrochemicals, Elecon Engineering is renowned for its innovative solutions and high-quality products that cater to the complex needs of its industrial clients.

How the Company Makes Money

Elecon Engineering Co. Ltd. generates revenue primarily through the sale of its industrial gears and material handling equipment. These products are critical components for various industrial operations, providing necessary solutions for power transmission and efficient material movement. The company offers customized solutions to meet specific client requirements, which adds value and increases its market competitiveness. Additionally, Elecon Engineering benefits from long-term contracts and partnerships with major industrial players, ensuring a steady revenue stream. The company's focus on research and development allows it to introduce advanced, high-performance products, further enhancing its revenue potential.

Elecon Engineering Co. Ltd. Financial Statement Overview

Summary

Elecon Engineering Co. Ltd. exhibits strong financial performance with significant revenue growth, robust profitability margins, a solid balance sheet with low leverage, and effective cash flow management. These factors highlight the company's solid financial health and growth prospects.

Income Statement

Elecon Engineering Co. Ltd. has demonstrated remarkable revenue growth over the years, with the latest annual growth rate being 16.8%. The company maintains strong profitability with a gross profit margin of 46.7% and a net profit margin of 18.6% for the last reported year. Moreover, the EBIT margin stands at 37.3%, showcasing efficient operational management. The consistent revenue growth and robust margins indicate a strong competitive position in the industry.

Balance Sheet

The balance sheet of Elecon Engineering reflects a solid financial structure with a low debt-to-equity ratio of 0.09, indicating conservative leverage. The company exhibits a healthy equity ratio of 73.2%, suggesting strong asset backing. The return on equity is robust at 20.8%, signifying effective utilization of shareholders' funds. The company's strong equity position and prudent leverage management contribute to its financial stability.

Cash Flow

Elecon Engineering's cash flow statement shows a healthy Free Cash Flow growth of 9.9% year-over-year. The operating cash flow to net income ratio is 1.04, indicating efficient cash generation relative to profits. Additionally, the free cash flow to net income ratio stands at 0.88, reflecting effective conversion of profits into cash. The positive cash flow metrics highlight strong cash management and operational efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	22.27B	22.27B	19.37B	15.30B	12.12B	10.36B
Gross Profit	9.20B	10.40B	8.83B	6.66B	5.32B	2.94B
EBITDA	5.83B	5.43B	5.19B	3.59B	2.56B	1.92B
Net Income	4.15B	4.15B	3.56B	2.38B	1.40B	576.31M
Balance Sheet
Total Assets	27.29B	27.29B	21.24B	17.32B	17.18B	19.93B
Cash, Cash Equivalents and Short-Term Investments	7.73B	7.73B	4.78B	2.29B	871.86M	1.41B
Total Debt	1.81B	1.81B	704.60M	515.76M	1.51B	3.35B
Total Liabilities	7.31B	7.31B	5.20B	4.53B	6.68B	10.73B
Stockholders Equity	19.99B	19.99B	16.04B	12.79B	10.50B	9.19B
Cash Flow
Free Cash Flow	0.00	3.66B	3.33B	2.63B	2.01B	2.44B
Operating Cash Flow	0.00	4.32B	3.65B	3.10B	2.50B	2.48B
Investing Cash Flow	0.00	-3.16B	-2.79B	-1.67B	-118.46M	-186.78M
Financing Cash Flow	0.00	-673.70M	-585.10M	-1.45B	-2.50B	-2.10B

Elecon Engineering Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 567.45
• 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:ELECON, the sentiment is Negative. The current price of 567.45 is below the 20-day moving average (MA) of 573.89, below the 50-day MA of 619.32, and below the 200-day MA of 567.59, indicating a bearish trend. The MACD of -19.26 indicates Negative momentum. The RSI at 42.96 is Neutral, neither overbought nor oversold. The STOCH value of 41.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ELECON.

Elecon Engineering Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELECON	68 Neutral	₹122.48B	23.68		0.35%	20.07%	45.28%
ELGIEQUIP	66 Neutral	₹164.22B	45.15		0.44%	9.09%	12.31%
INGERRAND	66 Neutral	₹113.73B	42.97		2.22%	11.03%	20.30%
CRAFTSMAN	64 Neutral	₹164.19B	77.82		0.07%	38.51%	-33.84%
Sector *	63 Neutral	$10.83B	16.63	7.96%	2.06%	2.20%	-16.67%
ISGEC	60 Neutral	₹76.86B	30.84		0.38%	3.30%	2.27%
KSB	59 Neutral	₹137.68B	53.61		0.50%	10.55%	17.96%

Elecon Engineering Co. Ltd. Corporate Events

Elecon Engineering Announces Earnings Call for Q1 FY26

Elecon Engineering Co. Ltd. has announced an upcoming earnings conference call scheduled for July 11, 2025, organized by Asian Markets Securities. The call will discuss the company’s financial performance for the quarter ending June 30, 2025, and will feature key company representatives. This event is significant as it provides insights into the company’s financial health and strategic direction, potentially impacting investor confidence and market positioning.