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

• Market Cap: ₹126.74B
• Dividend Yield: 0.37%
• Average Volume (3M): 47.36K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 1.67
• Revenue Growth: 20.94%
• EPS Growth: 45.63%
• Country: IN
• Employees: 1,974
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 3.91
• Shares Outstanding: 224,399,930
• 10 Day Avg. Volume: 66,917
• 30 Day Avg. Volume: 47,361
• PEG Ratio: 1.44
• Price to Book (P/B): 5.01
• Price to Sales (P/S): 4.49
• P/FCF Ratio: 27.32
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ₹615.00 ▲(14.38% Upside)

Elecon Engineering Co. Ltd. has a strong financial foundation with impressive revenue growth and profitability, supported by a solid balance sheet and effective cash flow management. However, technical indicators suggest a lack of strong momentum, and the stock's valuation is moderate with a low dividend yield. These factors collectively result in a balanced overall stock score.

Elecon Engineering Co. Ltd. Business Overview & Revenue Model

Company Description

Elecon Engineering Co. Ltd. (ELECON) is a leading Indian engineering company specializing in the manufacturing of industrial equipment and providing comprehensive engineering solutions. Founded in 1951, the company operates in various sectors, including material handling, power transmission, and industrial automation. ELECON's core products encompass gearboxes, conveyors, and other mechanical equipment that cater to a wide range of industries such as cement, mining, power, and steel.

How the Company Makes Money

ELECON generates revenue primarily through the sale of its industrial products, including gearboxes and bulk material handling systems. The company also earns income from providing engineering services, project management, and after-sales support to its clients. Key revenue streams include direct sales to industrial customers, long-term contracts for large-scale projects, and maintenance services. Additionally, ELECON has established partnerships with various firms to enhance its product offerings and expand its market reach, which contributes to its overall earnings. The company's diverse clientele across multiple sectors further stabilizes its revenue sources.

Elecon Engineering Co. Ltd. Financial Statement Overview

Summary

Elecon Engineering Co. Ltd. demonstrates strong financial performance with impressive revenue growth, robust profitability margins, a solid balance sheet with low leverage, and effective cash flow management. These factors indicate a strong competitive position and financial stability.

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	23.25B	22.27B	19.37B	15.30B	12.12B	10.44B
Gross Profit	10.51B	9.89B	8.83B	6.66B	5.31B	4.66B
EBITDA	5.59B	5.28B	4.72B	3.33B	2.49B	1.81B
Net Income	5.17B	4.15B	3.56B	2.38B	1.40B	576.31M
Balance Sheet
Total Assets	0.00	27.29B	21.24B	17.32B	17.18B	19.93B
Cash, Cash Equivalents and Short-Term Investments	7.25B	7.25B	4.78B	2.29B	871.86M	1.41B
Total Debt	0.00	1.81B	704.60M	515.76M	1.51B	3.35B
Total Liabilities	-19.99B	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: 537.70
• 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:ELECON, the sentiment is Negative. The current price of 537.7 is below the 20-day moving average (MA) of 555.52, below the 50-day MA of 572.64, and below the 200-day MA of 559.55, indicating a bearish trend. The MACD of -6.80 indicates Positive momentum. The RSI at 39.25 is Neutral, neither overbought nor oversold. The STOCH value of 20.80 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	70 Outperform	₹126.74B	24.51	―	0.37%	20.94%	45.63%
KSB	68 Neutral	₹134.54B	52.39	―	0.53%	10.55%	17.96%
ELGIEQUIP	66 Neutral	₹152.72B	41.99	―	0.46%	8.53%	11.95%
INGERRAND	66 Neutral	₹120.04B	45.36	―	2.13%	9.63%	14.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CRAFTSMAN	59 Neutral	₹162.91B	77.21	―	0.07%	38.51%	-33.84%
ISGEC	56 Neutral	₹64.82B	27.46	―	0.58%	-2.31%	-8.69%

Elecon Engineering Co. Ltd. Corporate Events

Elecon Engineering Announces Investor Meetings in Mumbai

Elecon Engineering Co. Ltd. has announced a schedule for meetings with analysts and institutional investors in Mumbai on September 4, 2025. These meetings, hosted by Elara Capital, aim to engage stakeholders using publicly available information, ensuring no sensitive data is disclosed. This initiative reflects the company’s commitment to transparency and investor relations, potentially strengthening its market position and stakeholder trust.