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Elecon Engineering Co. Ltd.
(ELECON)
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Rating:59Neutral
Price Target:
₹455.00
▲(7.40% Upside)
Action:Reiterated
Date:08/06/26
The score is primarily supported by strong underlying profitability and a conservatively leveraged balance sheet, but is held back by FY2026 deterioration in cash conversion and earnings momentum. Technically, the stock is in a weak downtrend (below key moving averages with negative MACD), and valuation is less attractive due to a high P/E and low dividend yield.
Positive Factors
Strong margins
Sustained high gross and operating margins indicate durable product-level economics and pricing power in engineered goods. That margin base supports reinvestment, funds aftermarket service expansion and cushions cyclical revenue swings, sustaining long-term profitability and cash generation.
Negative Factors
Weakened cash conversion
Deteriorating cash conversion signals higher working-capital absorption or one-off cash drains, reducing available internal liquidity for capex, dividends or debt reduction. Persistently weaker FCF undermines earnings quality and constrains strategic flexibility in coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong margins
Sustained high gross and operating margins indicate durable product-level economics and pricing power in engineered goods. That margin base supports reinvestment, funds aftermarket service expansion and cushions cyclical revenue swings, sustaining long-term profitability and cash generation.
Read all positive factors
Elecon Engineering Co. Ltd. (ELECON) vs. iShares MSCI India ETF (INDA)
Market Cap
₹97.05B
Dividend Yield0.46%
Average Volume (3M)47.36K
Price to Earnings (P/E)41.1
Beta (1Y)1.74
Revenue Growth3.08%
EPS Growth-54.36%
CountryIN
Employees2,452
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)10.53
Shares Outstanding224,399,930
10 Day Avg. Volume66,917
30 Day Avg. Volume47,361
Financial Highlights & Ratios
PEG Ratio-1.41
Price to Book (P/B)3.71
Price to Sales (P/S)3.62
P/FCF Ratio43.96
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹635.00Price Target Upside49.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)16.7
Revenue Forecast (FY)₹25.57B
Elecon Engineering Co. Ltd. Business Overview & Revenue Model
Company Description
Elecon Engineering Company Limited specializes in the production and global distribution of power transmission and material handling machinery. Its business activities are categorized into two primary divisions: Material Handling Equipment and Tra...
How the Company Makes Money
ELECON makes money primarily by selling engineered industrial products and executing industrial equipment projects, along with associated aftermarket services. Key revenue streams typically include: (1) Sale of industrial power transmission produc...
Elecon Engineering Co. Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
64
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.96B | 23.66B | 22.27B | 19.37B | 15.30B | 12.12B |
| Gross Profit | 8.65B | 10.63B | 9.89B | 8.83B | 6.66B | 5.31B |
| EBITDA | 4.36B | 5.84B | 5.28B | 4.72B | 3.33B | 2.49B |
| Net Income | 2.36B | 3.41B | 4.15B | 3.56B | 2.38B | 1.40B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 32.34B | 27.29B | 21.24B | 17.32B | 17.18B |
| Cash, Cash Equivalents and Short-Term Investments | 8.40B | 8.53B | 7.25B | 4.78B | 2.29B | 871.86M |
| Total Debt | 0.00 | 2.73B | 1.81B | 704.60M | 515.76M | 1.51B |
| Total Liabilities | -23.06B | 9.28B | 7.31B | 5.20B | 4.53B | 6.68B |
| Stockholders Equity | 23.06B | 23.06B | 19.99B | 16.04B | 12.79B | 10.50B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.95B | 3.66B | 3.33B | 2.63B | 2.01B |
| Operating Cash Flow | 0.00 | 3.14B | 4.32B | 3.65B | 3.10B | 2.50B |
| Investing Cash Flow | 0.00 | -2.20B | -3.16B | -2.79B | -1.67B | -118.46M |
| Financing Cash Flow | 0.00 | -1.22B | -673.70M | -585.10M | -1.45B | -2.50B |
Elecon Engineering Co. Ltd. Technical Analysis
Negative
423.65
Price Trends
486.95
Negative
476.99
Negative
470.11
Negative
Market Momentum
-12.33
Negative
40.18
Neutral
51.37
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 423.65 is below the 20-day moving average (MA) of 433.37, below the 50-day MA of 486.95, and below the 200-day MA of 470.11, indicating a bearish trend. The MACD of -12.33 indicates Negative momentum. The RSI at 40.18 is Neutral, neither overbought nor oversold. The STOCH value of 51.37 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ₹188.29B | 55.94 | ― | 0.75% | 17.70% | -1.58% | |
66 Neutral | ₹30.40B | 47.83 | ― | 1.06% | -16.88% | -34.25% | |
59 Neutral | ₹97.05B | 41.06 | ― | 0.47% | 3.08% | -54.36% | |
57 Neutral | ₹305.58B | 55.90 | ― | 0.50% | 22.66% | 15.61% | |
56 Neutral | ₹42.68B | 19.63 | ― | 0.56% | -14.32% | -2.79% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹155.97B | 87.47 | ― | 0.32% | 12.78% | -40.29% |
* General Sector Average
IN:ELECON
Elecon Engineering Co. Ltd.
432.50
-128.18
-22.86%
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IN:TEXRAIL
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104.90
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IN:TRITURBINE
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13.58%
Elecon Engineering Co. Ltd. Corporate Events
Elecon Engineering Sets June 25, 2026 Virtual AGM, Releases FY26 Annual Report
Jun 2, 2026
Elecon Engineering Company Limited has scheduled its 66th Annual General Meeting for 25 June 2026 at 3:00 p.m. IST, to be held via video conferencing and other audio-visual means in line with guidelines from the Ministry of Corporate Affairs and t...
Elecon Engineering Files FY 2025-26 Business Responsibility and Sustainability Report
Jun 2, 2026
Elecon Engineering Company Limited has submitted its Business Responsibility and Sustainability Report for the financial year 2025-26 to the BSE and NSE, in compliance with SEBI’s disclosure regulations. The report, prepared on a standalone ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.