Elecon Engineering Co. Ltd. (IN:ELECON)
:ELECON
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Elecon Engineering Co. Ltd.
(ELECON)
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Rating:69Neutral
Price Target:
₹612.00
▲(18.24% Upside)
Action:Reiterated
Date:04/22/26
The score is primarily driven by solid underlying financial strength (strong margins and low leverage) but tempered by FY2026 deterioration in growth, earnings, and cash conversion. Technicals remain supportive with price above key moving averages and a positive MACD, though overbought signals increase near-term risk. Valuation is a mild headwind due to a ~25x P/E and a very low dividend yield.
Positive Factors
High and Stable Margins
Consistently high gross and operating margins indicate durable product-level profitability and pricing power in industrial gear and material‑handling segments. Strong margins support reinvestment, aftermarket development and buffer cyclical revenue swings, sustaining long‑term returns.
Negative Factors
FY2026 Revenue & Earnings Weakness
A clear slowdown in reported revenue growth and falling earnings in FY2026 signals weakening end‑market demand or margin pressure on core products. Reduced top‑line momentum can impair backlog conversion, limit operating leverage, and constrain medium‑term growth visibility.
Read all positive and negative factors
Positive Factors
Negative Factors
High and Stable Margins
Consistently high gross and operating margins indicate durable product-level profitability and pricing power in industrial gear and material‑handling segments. Strong margins support reinvestment, aftermarket development and buffer cyclical revenue swings, sustaining long‑term returns.
Read all positive factors
Elecon Engineering Co. Ltd. (ELECON) vs. iShares MSCI India ETF (INDA)
Market Cap
₹119.54B
Dividend Yield0.41%
Average Volume (3M)47.36K
Price to Earnings (P/E)33.2
Beta (1Y)1.72
Revenue Growth3.97%
EPS Growth-17.80%
CountryIN
Employees1,974
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)23.05
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)20.85
Revenue Forecast (FY)₹28.07B
Elecon Engineering Co. Ltd. Business Overview & Revenue Model
Company Description
Elecon Engineering Company Limited manufactures and sells power transmission and material handling equipment in India and internationally. The company operates in two segments, Material Handling Equipment and Transmission Equipment. It provides he...
How the Company Makes Money
ELECON makes money primarily by selling engineered products and related services to industrial customers. Key revenue streams include: (1) Sales of power transmission products—manufacture and sale of industrial gearboxes, geared motors, and relate...
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 | 23.95B | 23.66B | 22.27B | 19.37B | 15.30B | 12.12B |
| Gross Profit | 10.71B | 10.63B | 9.89B | 8.83B | 6.66B | 5.31B |
| EBITDA | 5.72B | 5.84B | 5.28B | 4.72B | 3.33B | 2.49B |
| Net Income | 5.17B | 3.41B | 4.15B | 3.56B | 2.38B | 1.40B |
Balance Sheet | ||||||
| Total Assets | 29.96B | 32.34B | 27.29B | 21.24B | 17.32B | 17.18B |
| Cash, Cash Equivalents and Short-Term Investments | 8.19B | 8.53B | 7.25B | 4.78B | 2.29B | 871.86M |
| Total Debt | 2.58B | 2.73B | 1.81B | 704.60M | 515.76M | 1.51B |
| Total Liabilities | 7.52B | 9.28B | 7.31B | 5.20B | 4.53B | 6.68B |
| Stockholders Equity | 22.44B | 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
Positive
517.60
Price Trends
456.23
Positive
442.52
Positive
494.01
Positive
Market Momentum
16.31
Positive
59.97
Neutral
81.83
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ELECON, the sentiment is Positive. The current price of 517.6 is above the 20-day moving average (MA) of 517.40, above the 50-day MA of 456.23, and above the 200-day MA of 494.01, indicating a bullish trend. The MACD of 16.31 indicates Positive momentum. The RSI at 59.97 is Neutral, neither overbought nor oversold. The STOCH value of 81.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ELECON.
Elecon Engineering Co. Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ₹182.94B | 41.99 | ― | 0.47% | 12.54% | 23.07% | |
69 Neutral | ₹119.54B | 33.22 | ― | 0.41% | 3.97% | -17.80% | |
66 Neutral | ₹140.22B | 53.07 | ― | 2.34% | 6.49% | -1.84% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ₹141.57B | 48.46 | ― | 0.51% | 4.54% | 1.65% | |
56 Neutral | ₹207.22B | 56.38 | ― | 0.07% | 41.80% | 91.43% | |
54 Neutral | ₹75.94B | 28.58 | ― | 0.59% | 6.14% | -4.01% |
* Industrials Sector Average
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Elecon Engineering Co. Ltd. Corporate Events
Elecon Engineering clears FY26 results, dividend and strengthens leadership bench
Apr 15, 2026
Elecon Engineering Company Limited’s board has approved audited standalone and consolidated financial results for the quarter and year ended 31 March 2026, alongside recommending a final dividend of Rs 1.50 per equity share for FY 2025-26, s...
Elecon Engineering Reshapes Leadership, Clears FY26 Results and Dividend
Apr 15, 2026
Elecon Engineering’s board has appointed Chintan Shah as Chief Financial Officer and key managerial personnel effective 15 April 2026, while also naming him an authorised official for determining the materiality of events for stock exchange ...
Elecon Engineering Reshapes Board, Confirms Dividend After FY26 Results
Apr 15, 2026
Elecon Engineering’s board has approved a series of leadership changes, appointing Chintan Shah as Chief Financial Officer and key managerial personnel with authority over regulatory disclosures, and naming Aayush Shah as Executive Director ...
Elecon Engineering revamps leadership, clears FY26 results and declares dividend
Apr 15, 2026
Elecon Engineering Company Limited has overhauled key aspects of its leadership and governance, appointing Chintan Shah as Chief Financial Officer and key managerial personnel with authority over materiality determinations, while also inducting Dr...
Elecon Engineering Posts FY26 Revenue Growth but Faces Margin Pressure and Goodwill Impairment
Apr 15, 2026
Elecon Engineering reported its audited consolidated financial results for the quarter and full year ended 31 March 2026, showing a mixed performance with modest revenue growth but pressure on profitability. Adjusted full-year revenue rose about 6...
Elecon Engineering Sets April 16 Earnings Call to Discuss FY26 Results
Apr 11, 2026
Elecon Engineering Company Limited has announced that Emkay Global Financial Services will host an earnings conference call with the company’s senior management on 16 April 2026 at 4:00 p.m. India time. The call will cover Elecon’s fin...
Elecon Engineering Receives SEBI Compliance Certificate on Dematerialisation Process
Apr 5, 2026
Elecon Engineering Company Limited has disclosed that it received a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 March 2026 from its registrar and share transf...
Elecon Reschedules Analyst and Investor Meet by One Day
Mar 10, 2026
Elecon Engineering Company Limited has notified the stock exchanges that its planned analyst and institutional investor meeting has been postponed by one day, from 12 March 2026 to 13 March 2026, due to unforeseen exigencies. The company stated th...
Elecon Engineering Schedules Analyst Plant Visit Under SEBI Disclosure Norms
Mar 10, 2026
Elecon Engineering Company Limited has announced that its officials will host a group plant visit for analysts and institutional investors on March 13, 2026, from 3:00 p.m. IST onwards, organized by Share India Securities Limited. The company emph...
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.