Overall Fundamental outlook

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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

Revenues for ELECON are forecasted to decline from last year's levels, prompting caution among investors. When revenues fall, it can have a significant negative impact on the company's bottom line, reducing profitability and making the stock less attractive to risk-averse investors.

Financial Ratios:

currentRatio 2.936000
forwardPE 21.434694
debtToEquity 11.824000
earningsGrowth -0.959000
revenueGrowth -0.065000
grossMargins 0.449260
operatingMargins 0.175480
trailingEps 15.220000
forwardEps 24.500000

ELECON's current ratio being 2.936 shows it has more than enough assets to cover its short-term debts. The company's liquidity position is strong, with ample cash reserves available to meet its immediate financial obligations without strain.
Elecon Engineering Company Limited's Forward PE is at a healthy level, meaning the stock price is aligned favorably with earnings. This suggests that the stock isn't overpriced, providing room for growth and making it an appealing option for investors looking to capitalize on potential future gains.
Elecon Engineering Company Limited's low Debt-to-Equity ratio reflects the company's conservative use of debt. This shows that it isn't over-leveraged, reducing financial risk and indicating a stable financial structure, which is a positive signal for investors concerned about excessive debt burdens.
ELECON's low earnings and revenue growth point to a potential decline in profits. This signals a downturn in financial performance, suggesting that the company might face challenges in maintaining its current level of profitability.
ELECON's negative gross and operating margins signal that the company is not profitable, struggling to cover costs associated with production and operations. This could be a red flag for its financial performance moving forward.
ELECON's forward EPS surpasses its trailing EPS, reflecting expectations of higher profitability in the current year. This suggests that ELECON is projected to generate stronger earnings, indicating an optimistic financial outlook compared to the prior year's results.

Price projections:

Price projections for ELECON
Price projections for ELECON

The price of ELECON has consistently remained close to the lower end of price projections. This trend may reflect uncertainty in the market regarding the company's ability to deliver on growth expectations.

Insider Transactions:

Insider Transactions for ELECON
Insider Transactions for ELECON


There were 1 transactions selling ELECON stock, with prevailing market price of 389.8500061035156.During the period under consideration, there were no sell transactions.The recent trend of more purchases than sales at ELECON's current price could signal investor optimism. This pattern may point to a positive outlook for the stock, as it indicates growing confidence in its potential to perform well in the future.

Recommendation changes over time:

Recommendations trend for ELECON
Recommendations trend for ELECON


Analysts are favoring ELECON with a buy bias, highlighting the stock's potential as a solid investment. This recommendation might drive more investors to consider ELECON as a secure and profitable option for their money, contributing to a broader positive sentiment in the market.