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 revenues are expected to fall below last year's, and this forecast tends to raise concerns among investors. A revenue drop can negatively impact the company's profitability, making investors more cautious about their positions due to the risks of declining financial performance.

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

Elecon Engineering Company Limited's Forward PE is in a reasonable range, indicating the stock is priced well relative to its earnings. The stock isn't overpriced, which leaves room for future growth, making it an attractive option for investors seeking value and long-term gains.
ELECON's low Debt-to-Equity ratio shows that the company avoids excessive reliance on debt, reducing financial risk. This suggests a more secure financial position with less vulnerability to debt-related risks, making ELECON a stable and conservative investment.
ELECON's low earnings and revenue growth suggest that the company's profits may shrink. This trend could indicate underlying financial struggles and pose challenges for ELECON's future profitability.
ELECON's negative gross and operating margins suggest the company is not generating profit from either its production process or day-to-day operations. This could signal cost overruns or difficulties in maintaining revenue levels.
ELECON's forward EPS being higher than its trailing EPS suggests that the company is expected to generate stronger profits this year. This points to improving financial performance, with ELECON anticipated to deliver better earnings than it did in the prior year.

Price projections:

Price projections for ELECON
Price projections for ELECON

Elecon Engineering Company Limited's price has often been near the lower end of the projected range. This ongoing trend suggests that investor confidence might be waning, and the stock could face challenges in gaining upward momentum.

Recommendation changes over time:

Recommendations trend for ELECON
Recommendations trend for ELECON


Analysts' buy bias for Elecon Engineering Company Limited signals that the stock is considered a favorable investment. This outlook might prompt investors to allocate funds to Elecon Engineering Company Limited, seeing it as a solid and profitable choice to park their money and potentially benefit from the company's long-term growth.