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 Engineering Company Limited is projected to experience a revenue decline compared to last year, a development that often leads to investor caution. The drop could negatively impact the company's bottom line, as lower revenues typically signal reduced profitability, prompting more conservative investment strategies.

Financial Ratios:

currentRatio 3.15800
forwardPE 26.78395
debtToEquity 9.06700
earningsGrowth 0.41300
revenueGrowth 0.41300
grossMargins 0.44403
operatingMargins 0.23226
trailingEps 18.51000
forwardEps 19.90000

Elecon Engineering Company Limited's current ratio, being 3.158, demonstrates that the company has the liquidity necessary to service its short-term debt. With strong cash reserves and current assets, Elecon Engineering Company Limited is well-equipped to meet its immediate financial obligations without any difficulties.
ELECON's Forward PE ratio suggests the stock price is reasonable in relation to earnings. It's not overpriced, providing room for future growth, making the stock a potentially valuable investment for those seeking long-term gains.
With positive growth in both earnings and revenue, Elecon Engineering Company Limited 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 suggest that the company is operating profitably. These strong margins indicate effective cost management and revenue generation, contributing to a solid financial foundation.
ELECON's forward EPS surpassing its trailing EPS signals projected growth in profitability, with the company expected to perform better this year. This forecast suggests that ELECON's earnings will improve compared to the previous financial year, highlighting optimism in its financial outlook.

Price projections:

Price projections for ELECON
Price projections for ELECON

ELECON's price has already surpassed the upper threshold of projections, indicating significant upward momentum. However, the constrained potential for further increases suggests that the stock may be reaching a point of stabilization.

Recommendation changes over time:

Recommendations trend for ELECON
Recommendations trend for ELECON


Elecon Engineering Company Limited has been receiving a buy bias from analysts, signaling strong confidence in the stock's future performance. This positive outlook might drive investors to view Elecon Engineering Company Limited as an attractive option for their portfolios, positioning the company as a stable and profitable investment choice.