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 a decline in revenue compared to last year, which could lead to investor caution. A drop in earnings is often viewed as a negative signal for profitability, making it more difficult for the company to maintain investor confidence in its financial health.

Financial Ratios:

currentRatio 2.936000
forwardPE 20.734694
debtToEquity 11.824000
earningsGrowth -0.959000
revenueGrowth -0.065000
grossMargins 0.449260
operatingMargins 0.175480
trailingEps 15.200000
forwardEps 24.500000

ELECON's current ratio being 2.936 shows it has more than enough assets to cover its short-term debts. The company's liquidity position is strong, with ample cash reserves available to meet its immediate financial obligations without strain.
Elecon Engineering Company Limited's Forward PE is in a favorable range, suggesting the stock is reasonably priced relative to its earnings. This indicates the stock is not overpriced, providing room for potential growth and making it an attractive option for investors looking for solid value and future upside.
ELECON'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 has a strong capital structure, which can help sustain long-term stability and attract cautious investors.
ELECON's low growth in both earnings and revenue indicates potential profit shrinkage. This downward trend could be a sign of weakening financial health, signaling challenges for the company's future profitability.
With negative gross and operating margins, ELECON is facing losses at both the production and operational levels. This signals significant financial strain and may indicate that the company is struggling to manage costs effectively.
ELECON's forward EPS being higher than its trailing EPS signals anticipated growth in profitability for the current financial year. This suggests that ELECON is on track to improve its earnings, outpacing the previous year's performance and reflecting positive market expectations.

Price projections:

Price projections for ELECON
Price projections for ELECON

Price projections for Elecon Engineering Company Limited have been gradually lowered, signaling reduced optimism among analysts. This downward adjustment suggests that the company may face challenges in meeting previous growth expectations.

Insider Transactions:

Insider Transactions for ELECON
Insider Transactions for ELECON


1 Elecon Engineering Company Limited transactions were recorded, when the market price was 389.8500061035156.There were no sell transactions recorded during the period under consideration.Investors have been purchasing ELECON more than selling it at current price levels, which may reflect optimism. This pattern suggests that the market expects favorable outcomes for the stock, leading to increased buying interest.

Recommendation changes over time:

Recommendations trend for ELECON
Recommendations trend for ELECON


The recent buy bias for ELECON from analysts signals strong confidence in the stock's potential. This positive sentiment could encourage investors to see ELECON as a smart place to invest their money, especially those looking for stable, long-term returns in a well-established company.