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 is projected to see lower revenues than in the previous year, a trend that usually concerns investors. Declining revenues often harm a company's profitability, leading investors to exercise caution as they weigh the potential risks of continued financial downturns.

Financial Ratios:

currentRatio 3.158000
forwardPE 27.886833
debtToEquity 9.067000
earningsGrowth 0.414000
revenueGrowth 0.413000
grossMargins 0.466830
operatingMargins 0.220760
trailingEps 18.520000
forwardEps 19.900000

Elecon Engineering Company Limited's current ratio of 3.158 reflects its strong liquidity position. The company has enough cash reserves and current assets to service its short-term debt obligations, signaling that Elecon Engineering Company Limited is financially well-prepared to meet its liabilities without difficulty.
ELECON's Forward PE ratio is favorable, meaning the stock price aligns well with earnings and isn't overvalued. This allows room for growth, making it an attractive investment for those seeking potential upside while ensuring the stock is not overpriced.
With positive growth in both earnings and revenue, ELECON is expected to grow its business. These indicators highlight a strong financial outlook, with the company on track for continued expansion and increasing profitability.
ELECON's positive gross and operating margins reflect its ability to generate profits from operations. These margins demonstrate efficient cost control and profitability, indicating strong financial health for the company.
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

Elecon Engineering Company Limited's stock price has surpassed the higher limit of expectations, indicating a successful upward trend. Nonetheless, the limited potential for further rises may signal that the stock is facing saturation, which could lead to a more stable price environment.

Recommendation changes over time:

Recommendations trend for ELECON
Recommendations trend for ELECON


ELECON has garnered a buy bias from analysts recently, suggesting the stock is a good investment opportunity. This may lead to increased investor interest, as ELECON is seen as a reliable place to park money for those looking to benefit from potential market gains and company growth.