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

• Market Cap: ₹108.23B
• Dividend Yield: 0.41%
• Average Volume (3M): 47.36K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.80
• 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: 64 Neutral
• Price Target: ₹528.00 ▲(9.48% Upside)

Elecon Engineering Co. Ltd. has a strong financial foundation, which is the most significant factor contributing to its overall score. However, the technical analysis indicates bearish momentum, which negatively impacts the stock's attractiveness. The valuation is fair but not compelling due to the low dividend yield. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term competitive positioning.

Profitability Margins

High profitability margins reflect efficient cost management and pricing power, supporting sustainable financial health and competitive advantage.

Balance Sheet Health

A low debt-to-equity ratio indicates conservative leverage, providing financial stability and flexibility for future growth opportunities.

Negative Factors

Stock Momentum

Lack of strong stock momentum may reflect investor uncertainty, potentially impacting the company's ability to raise capital or attract new investors.

Dividend Yield

A low dividend yield may deter income-focused investors, potentially limiting the stock's attractiveness and affecting market perception.

Market Sentiment

Negative market sentiment indicators can signal potential investor caution, which might affect stock performance and capital inflow.

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 helical and bevel helical, planetary, worm, high speed, wind turbine, marine, and custom built gear boxes; customized gear boxes; loose gears; vertical roller mill drives; elign geared, elflex flexible, fluid, scoop controlled variable speed controlled fluid, and torsion shaft couplings; and elevator traction machines. The company also provides material handling equipment, such as raw material handling systems, stackers, scrapers/reclaimers, bagging and weighing machines, wagon and truck loaders, crushers, wagon tipplers and associated equipment, feeders, idlers and pulleys, magnates/weighers/detectors, port equipment, and cable reeling drums; and alternate energy products. In addition, it engages in the ferrous and non-ferrous foundry business. Further, the company offers gearbox repair and refurbish services; and material handling equipment support services. Elecon Engineering Company Limited serves cement, sugar, defense, steel, mining, power, plastic, material handling, chemical, palm oil, crane, paper, rubber, marine, and fertilizer industries, as well as windmills and ports. The company was founded in 1951 and is based in Vallabh Vidyanagar, India.

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 health.

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	59.47B	22.27B	19.37B	15.30B	12.12B	10.44B
Gross Profit	26.41B	9.89B	8.83B	6.66B	5.31B	4.66B
EBITDA	13.95B	5.28B	4.72B	3.33B	2.49B	1.81B
Net Income	12.10B	4.15B	3.56B	2.38B	1.40B	576.31M
Balance Sheet
Total Assets	29.96B	27.29B	21.24B	17.32B	17.18B	19.93B
Cash, Cash Equivalents and Short-Term Investments	8.19B	7.25B	4.78B	2.29B	871.86M	1.41B
Total Debt	2.58B	1.81B	704.60M	515.76M	1.51B	3.35B
Total Liabilities	7.52B	7.31B	5.20B	4.53B	6.68B	10.73B
Stockholders Equity	22.44B	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: 482.30
• 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 482.3 is below the 20-day moving average (MA) of 484.67, below the 50-day MA of 522.22, and below the 200-day MA of 558.69, indicating a bearish trend. The MACD of -13.76 indicates Negative momentum. The RSI at 40.99 is Neutral, neither overbought nor oversold. The STOCH value of 54.00 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
ELGIEQUIP	66 Neutral	₹149.09B	38.17	―	0.47%	9.46%	18.97%
INGERRAND	66 Neutral	₹107.78B	40.72	―	2.34%	5.68%	9.74%
ELECON	64 Neutral	₹108.23B	20.93	―	0.41%	20.94%	45.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CRAFTSMAN	59 Neutral	₹167.96B	69.94	―	0.07%	54.58%	-12.30%
KSB	59 Neutral	₹133.83B	50.96	―	0.52%	9.50%	14.52%
ISGEC	58 Neutral	₹59.99B	32.01	―	0.61%	-4.14%	-35.66%

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.