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's projected revenue decline from last year is likely to make investors cautious. Lower revenues often hurt a company's bottom line, leading investors to be concerned about the company's ability to maintain profitability and deliver strong financial results in the future.

Financial Ratios:

currentRatio 3.567000
forwardPE 21.432808
debtToEquity 11.490000
earningsGrowth 0.000000
revenueGrowth 0.138000
grossMargins 0.447100
operatingMargins 0.173590
trailingEps 23.060000
forwardEps 19.900000

ELECON's current ratio of 3.567, indicating that the company can meet its short-term debt obligations with ease. This high liquidity level is a positive sign, as ELECON has enough cash and current assets to handle its immediate liabilities comfortably.
ELECON's Forward PE being in a good range suggests that its stock price is aligned well with earnings. The stock is not considered overpriced, offering room for future growth, which makes it an appealing investment opportunity with the potential for value appreciation.
ELECON's low Debt-to-Equity ratio shows the company avoids heavy reliance on debt. This balanced approach reduces financial risk, as it maintains a healthy equity position without excessive leverage, providing greater financial stability and flexibility.
ELECON's forward EPS is lower than its trailing EPS, signaling that the company is projected to experience reduced profitability this year. This suggests a downward trend in earnings, which could raise concerns among investors about ELECON's financial outlook.

Price projections:

Price projections for ELECON
Price projections for ELECON

Price projections for ELECON have been revised upward over time, signaling increasing optimism about the company's future. This steady increase reflects a positive outlook for ELECON's growth and market performance.

Recommendation changes over time:

Recommendations trend for ELECON
Recommendations trend for ELECON


A recent buy bias from analysts toward ELECON may inspire confidence in investors, who could view the stock as a promising investment. This positive sentiment suggests that ELECON might be an appealing option for those looking to grow their wealth through stock market investments.