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

Investors may react cautiously to news that ELECON's revenues are forecasted to be lower than last year's. Such declines are likely to have a negative effect on the company's bottom line, which can lead to concerns about profitability and hinder investor confidence in the company's future performance.

Financial Ratios:

currentRatio 3.56700
forwardPE 19.05929
debtToEquity 11.49000
earningsGrowth 0.00000
revenueGrowth 0.13800
grossMargins 0.44710
operatingMargins 0.17359
trailingEps 23.03000
forwardEps 19.90000

ELECON's current ratio of 3.567 shows that the company has ample resources to service its short-term debt. This indicates a solid financial position, as ELECON can rely on its cash reserves and current assets to cover its immediate liabilities without strain.
ELECON'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 reflects limited reliance on debt, signaling the company is not over-leveraged. This lower financial risk suggests that Elecon Engineering Company Limited has a strong capital structure, which can help sustain long-term stability and attract cautious investors.
ELECON's forward EPS being lower than its trailing EPS suggests the company is expected to see reduced profitability in the current financial year compared to the previous one. This signals a potential decline in earnings, raising concerns about future financial performance.

Price projections:

Price projections for ELECON
Price projections for ELECON

ELECON's present price, in comparison to its projections, indicates no evident risks or opportunities. This balanced scenario suggests a steady environment, where investors might choose to wait for more definitive indicators before altering their strategies.

Recommendation changes over time:

Recommendations trend for ELECON
Recommendations trend for ELECON


Analysts have been favoring ELECON with a buy bias recently, signaling a promising investment opportunity. This optimistic outlook may attract more investors, positioning ELECON as a desirable option for those seeking to invest their money in a stable, profitable company with strong growth potential.