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 is projected to decrease from last year, a development that could lead investors to adopt a more cautious approach. A revenue decline can negatively affect profitability, signaling challenges for the company and making it less attractive for those seeking solid financial performance.

Financial Ratios:

currentRatio 0.000000
forwardPE 16.778522
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 being in a reasonable range suggests the stock is fairly priced based on its earnings. The stock isn't overpriced, leaving room for growth, making it an attractive investment for those seeking opportunities for future value appreciation.
Elecon Engineering Company Limited's low Debt-to-Equity ratio indicates that the company isn't over-leveraged, suggesting it maintains a healthy balance between debt and equity. This lowers financial risk and points to a stable financial foundation, reassuring investors of the company's financial health.
ELECON's low earnings and revenue growth suggest that the company may see declining profits. This indicates potential financial challenges ahead, and could lead to a more cautious outlook from investors.
ELECON's negative gross and operating margins indicate that the company is operating at a loss. This reflects an inability to cover production costs and operational expenses, which could undermine its financial stability.
ELECON's forward EPS exceeding its trailing EPS implies that the company is projected to be more profitable this year. This suggests an improvement in financial performance, with analysts expecting ELECON to generate stronger earnings compared to the previous financial year.

Price projections:

Price projections for ELECON
Price projections for ELECON

Price projections for ELECON have been gradually reduced, reflecting growing uncertainty about the company's future performance. The downward revisions indicate analysts are lowering their expectations for ELECON's market trajectory.

Recommendation changes over time:

Recommendations trend for ELECON
Recommendations trend for ELECON


A recent buy bias from analysts toward ELECON may inspire confidence in investors, who could view the stock as a promising investment. This positive sentiment suggests that ELECON might be an appealing option for those looking to grow their wealth through stock market investments.