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

With ELECON's revenue forecasted to drop below last year's level, investors are expected to take a cautious stance. Such declines typically affect a company's bottom line, reducing profitability and making investors hesitant to invest heavily in the company until financial performance improves.

Financial Ratios:

currentRatio 3.158000
forwardPE 29.028809
debtToEquity 9.067000
earningsGrowth 0.414000
revenueGrowth 0.413000
grossMargins 0.466830
operatingMargins 0.220760
trailingEps 18.480000
forwardEps 19.900000

The current ratio for ELECON is 3.158, indicating that the company can service its short-term debt using available cash and assets. This suggests ELECON has strong liquidity, with more than enough resources to meet its immediate financial commitments.
ELECON's Forward PE is at a healthy level, meaning the stock price is aligned favorably with earnings. This suggests that the stock isn't overpriced, providing room for growth and making it an appealing option for investors looking to capitalize on potential future gains.
Elecon Engineering Company Limited's positive earnings and revenue growth indicate that the company is well-positioned for business expansion. This growth suggests a strong financial trajectory, with Elecon Engineering Company Limited expected to continue increasing its profits and revenue in the coming periods.
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.
With a forward EPS greater than its trailing EPS, Elecon Engineering Company Limited is forecasted to be more profitable this year than last. This growth expectation reflects confidence in the company's earnings potential and suggests an improving financial trajectory for the year ahead.

Price projections:

Price projections for ELECON
Price projections for ELECON

The price of ELECON has surpassed the higher end of projections, showing strong upward momentum. However, with limited space for further increases, the stock may be due for a correction or stabilization in the near term.

Recommendation changes over time:

Recommendations trend for ELECON
Recommendations trend for ELECON


Elecon Engineering Company Limited has garnered a buy bias from analysts recently, suggesting the stock is a good investment opportunity. This may lead to increased investor interest, as Elecon Engineering Company Limited is seen as a reliable place to park money for those looking to benefit from potential market gains and company growth.