Elecon Engineering ended at 362.45 on July 29, 2022, and we Recommended Excellent Buy for LONG-TERM TARGET of 780 with a stop loss of 318 and Good Buy for SHORT-TERM TARGET of 418 with a stop loss of 292.
Open 372.00 Change Price % High 373.80 1 Day -9.00 -2.42 Low 361.00 1 Week 48.65 15.50 Close 362.45 1 Month 93.50 34.76 Volume 474256 1 Year 223.75 161.32 52 Week High 212.00 | 52 Week Low 22.00
The company is engaged to create a global presence in power transmission by innovating and developing products that add value to customers’ lives.
The firm is following modern day techniques by adapting to changes and confront problems through creative entrepreneurship, empowered teamwork, constant improvements among its product line, environmentally friendly practices, and profit optimization for its shareholders.
It is a key company in Indian manufacturing sector.
Elecon Engineering : A brief study
Elecon Engineering Company Limited is a global Indian corporation located in Anand, Gujarat. The company was found by Ishwar Bhai Patel in 1951, 71 years ago.
The firm excels in the production of industrial gear and materials handling heavy machinery.
The Company is among Asia’s top manufacturers of industrial gears as well as material handling equipment for major industries such as electrification of power grid, steel refinery, cement, ethanol, sugar, paper, mining, latex, rubber, and many more heavy and light consumer goods among its vast range of product line.
A rich heritage
Elecon Engineering boast of a rich history of 71 years in the manufacturing play.
- Ishwarbhai B. Patel founded Elecon Engineering in Goregaon, Mumbai, in 1951.
Originally, the company focused on engineering, procurement, and infrastructure improvements in India, and also built custom manufacturing conveyor systems.
On January 11, 1960, the corporation was incorporated as a Private Limited company.
- The company relocated to its current location in Vallabh Vidyanagar, Gujarat, in May 1960. (now part of Anand).
- The firm then went public on the Bombay Stock Exchange and the National Stock Exchange.
- The business founded its Gear Division in 1976, concentrating on power transmission equipment and industrial gears.Worm drives, helical gears, planetary gears, couplings, loose gears, custom constructed gearboxes, and spiral bevel gears are all designed and manufactured by the company.
- Its products are targeted at a variety of industries, including as steel rolling mills, wind turbines, marine technologies, and aerospace engineering.
- Elecon founded its Alternate Energy Division in 1995 to develop and produce wind turbines.
- Elecon Engineering received two prestigious orders from NTPC and Tecpro Systems in 2012.
A List Of Acquisitions and subsidiaries
Q1FY23 Result Update
In–line performance, outlook maintained
- Elecon Enginnering reported in-line performance in the first quarter of fiscal year 23 as the Material Handling Equipment (MHE) sector improved while margins were robust.
- As a result of the altered strategy, MHE has become profitable.
As a result, the company achieved net debt-free status ahead of schedule.
The management opinion on growth projections remains upbeat.
The FY23/24E projection of INR1,500/2,000cr stays unchanged.
Tactical BUY is reaffirmed, with estimates remaining unchanged.
Management commentary is upbeat, and the stock has the ability to outperform due to robust order inquiries.
Elecon has the potential to generate INR2,100cr in revenue by FY24E, putting our estimates at risk.
Elecon’s technical capabilities are further bolstered by a repeat Navy order.
The company has recently risen significantly, so a pullback is not unexpected; however, the core thesis remains intact and deserves involvement.
We maintain our Tactical BUY rating and raise our target price to INR417, pricing the company at 20x FY24e PE.
We reiterate our Tactical BUY recommendation and raise our target price to INR418/share.
Elecon Engineering is now trading at a PE ratio of 21x/16x FY23/24E.
Key Ratios and Highlights
Key Ratios (%)
|Return on Equity||10.42||8.18||15.25||14.12||6.29|
|Return on Capital||12.08||10.87||—||17.59||11.27|
|Debt to Equity (x)||—||—||0.02||0.10||0.31|
Share price projection and trading reports for Elecon Engineering Company Ltd.
On Investo Lingo, we have recommendations from 5 analysts covering Elecon Engineering Company Ltd.
- Karvy brokerage – 390
- Angel One – 420
- HDFC Brokerage – 395
- ICICI Securities – 450
- Motilal Oswal – 438
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