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 2.93600
forwardPE 21.45102
debtToEquity 11.82400
earningsGrowth -0.95900
revenueGrowth -0.06500
grossMargins 0.43163
operatingMargins 0.18148
trailingEps 15.20000
forwardEps 24.50000

ELECON's current ratio of 2.936 means the company has enough liquidity to meet its short-term debt obligations. With sufficient cash reserves and current assets, ELECON can comfortably cover its liabilities, reflecting a strong financial outlook.
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 signals the company is not over-leveraged, meaning it has a conservative approach to debt. This reduces financial risk and indicates a stable financial foundation, providing flexibility and security, which can appeal to investors seeking lower-risk investments.
ELECON's low earnings and revenue growth suggest shrinking profits are likely. This could reflect broader financial struggles, signaling that the company might face difficulties in sustaining its profitability.
ELECON's negative gross and operating margins suggest that the company is struggling to cover its production and operating costs, leading to losses. This reflects a weakened financial state and potential difficulties in sustaining profitability.
ELECON's forward EPS surpassing its trailing EPS signals that the company is anticipated to be more profitable this year than last. This growth expectation highlights ELECON's potential for increased earnings and a stronger financial performance in the upcoming year.

Price projections:

Price projections for ELECON
Price projections for ELECON

The stock price of Elecon Engineering Company Limited has frequently been close to the lower end of analysts' projections. This trend indicates potential struggles for the company in achieving the growth anticipated by the market.

Insider Transactions:

Insider Transactions for ELECON
Insider Transactions for ELECON


ELECON experienced 1 sell transactions with market price of 389.8500061035156 per share.No sell transactions took place in the period under consideration.The recent trend of more purchases than sales at ELECON's current price could signal investor optimism. This pattern may point to a positive outlook for the stock, as it indicates growing confidence in its potential to perform well in the future.

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.