Overall Fundamental outlook

Business Operations:

Sector: Industrials
Industry: Specialty Industrial Machinery

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. It 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. Elecon Engineering Company Limited was founded in 1951 and is based in Vallabh Vidyanagar, India.

Revenue projections:

Revenue projections for ELECON
Revenue projections for ELECON

ELECON's revenue projections indicate a decrease from last year's performance, which could lead to investor caution. A fall in revenue is likely to negatively impact the company's profitability, causing concern for shareholders who may view this as a signal of declining financial health.

Financial Ratios:

currentRatio 0.000000
forwardPE 18.850111
debtToEquity 11.490000
earningsGrowth -0.330000
revenueGrowth 0.043000
grossMargins 0.433710
operatingMargins 0.148510
trailingEps 21.490000
forwardEps 22.350000

With Elecon Engineering Company Limited's Forward PE in a favorable range, the stock appears reasonably priced compared to its earnings. This suggests that it's not overpriced and there is room for growth, providing an encouraging opportunity for investors seeking future value increases.
ELECON's low Debt-to-Equity ratio means it is not excessively reliant on debt financing. This low leverage suggests lower financial risk and stronger equity control, positioning the company in a more stable financial situation and reducing vulnerability to debt-related issues.
Elecon Engineering Company Limited's low earnings and revenue growth highlight potential profit shrinkage. This suggests that the company may struggle to maintain its financial performance, raising concerns about its future profitability.
With negative gross and operating margins, ELECON is facing losses at both the production and operational levels. This signals significant financial strain and may indicate that the company is struggling to manage costs effectively.
ELECON's forward EPS being higher than its trailing EPS signals anticipated growth in profitability for the current financial year. This suggests that ELECON is on track to improve its earnings, outpacing the previous year's performance and reflecting positive market expectations.

Price projections:

Price projections for ELECON
Price projections for ELECON

ELECON's price has consistently been situated near the lower end of expected values. This ongoing trend may reflect investor skepticism about the company's growth potential and overall performance.

Recommendation changes over time:

Recommendations trend for ELECON
Recommendations trend for ELECON


Analysts' recent buy bias toward Elecon Engineering Company Limited suggests the stock is gaining favor as a strong investment choice. This optimism could drive more investors to see Elecon Engineering Company Limited as a smart place to invest, further bolstering confidence in the company's long-term growth and potential returns.