Elecon Engineering Company Ltd logo

Elecon Engineering Company Ltd

ELECON NSE

Elecon Engineering Company Ltd., incorporated in 1960. Company manufactures and sells power transmission and material handling equipment in India and internationally. In addition, it engages in the steel and non-ferrous foundry business. [1]

AI Verdict: HOLD Confidence: 5%

Elecon Engineering has delivered strong long-term wealth creation with 33% stock CAGR over 10 years and robust 5-year profit CAGR of 44%, but near-term headwinds are evident with TTM profit declining 15% and the stock correcting 15% over the past year. At a PE of 35.2x with slowing growth, the risk-reward is balanced at current levels.

Key Fundamentals

MicrocapIndustrial ProductsCapital Goods
Market Cap
₹11,899 Cr
Volatility
Moderate
P/E Ratio
34.33
EBITDA
₹604 Cr
Return on Equity
22.17%
Debt to Equity
0.11
Book Value
₹102.76
EPS
₹15.86
52W High
₹683
52W Low
₹352

Technical Indicators

Growth Rate

Revenue Growth
7.25% ↘
Net Income Growth
-17.80% ↗
Cash Flow Change
-26.14% ↘
ROE
-28.79% ↗
ROCE
-25.59% ↗
EBITDA Margin (Avg.)
-6.51% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

Elecon Engineering has delivered strong long-term wealth creation with 33% stock CAGR over 10 years and robust 5-year profit CAGR of 44%, but near-term headwinds are evident with TTM profit declining 15% and the stock correcting 15% over the past year. At a PE of 35.2x with slowing growth, the risk-reward is balanced at current levels.

Bull Case 7
  • Exceptional long-term wealth creation with 10-year stock CAGR of 33% and 5-year CAGR of 52%, significantly outperforming broader indices
  • Strong 5-year compounded profit growth of 44% demonstrates sustained earnings power and operational leverage
  • Unanimous analyst consensus with 100% buy ratings from all 3 covering analysts, indicating institutional confidence
  • Healthy 3-year ROE of 21% and 5-year ROE of 20% reflects efficient capital deployment and strong return generation
  • 5-year compounded sales growth of 18% shows consistent top-line expansion in the industrial capital goods space
  • Market cap of Rs 11,967 crore provides sufficient scale and liquidity while still leaving room for mid-cap re-rating upside
  • 10-year compounded profit growth of 29% demonstrates the company has navigated multiple business cycles successfully
Bear Case 8
  • TTM profit has declined 15% year-over-year, signaling a potential earnings deceleration or margin compression
  • Stock has corrected 15% over the past 1 year, indicating market is pricing in near-term growth concerns
  • PE ratio of 35.2x is expensive for an industrial company with TTM sales growth of only 6%, implying stretched valuations
  • Price-to-book ratio of 5.21x is elevated for a capital goods manufacturer, leaving limited margin of safety
  • TTM sales growth has decelerated sharply to 6% from 3-year CAGR of 16%, suggesting order book momentum may be weakening
  • Dividend yield of only 0.37% offers negligible income cushion during periods of capital depreciation
  • Last year ROE has declined to 16% from 3-year average of 21%, a 500 basis point deterioration indicating waning profitability
  • Limited analyst coverage with only 3 ratings increases information asymmetry risk for retail investors

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Positives 1
  • Mexico subsidiary incorporated Jun 12

    Step-down subsidiary Grupo Radicon SA de CV received Certificate of Incorporation in Mexico on June 11, 2026, signaling international expansion in gear/transmission markets.

Neutral 4
  • Independent Director reappointed Jun 22

    Pranav C. Amin appointed as Non-Executive & Independent Director for a second term of five years effective June 22, 2026.

  • Special window for share transfers Jun 9

    Elecon opened a special window for re-lodging physical share transfer requests until February 04, 2027, with credits in demat form and a one-year lock-in.

  • BRSR filed for FY26 Jun 2

    Elecon filed its Business Responsibility and Sustainability Report for FY26 with stock exchanges, detailing ESG initiatives and performance metrics.

  • No share encumbrance in FY26 May 28

    Elecon confirmed it holds 9,58,426 shares in EIMCO Elecon (India) Limited with no shares encumbered during FY26.

TL;DR: A quiet period for Elecon Engineering with no material negative developments. The Mexico subsidiary incorporation is a modest positive indicating continued international expansion. Governance and compliance disclosures remain routine. The news flow is largely procedural, suggesting stable operations with no emerging risks or catalysts in the near term.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
425
414
485
474
565
392
508
529
798
491
578
552
746
Expenses
332
314
366
353
429
300
396
386
602
360
452
443
588
Operating Profit
92.85
99.97
119
120
135
92.38
112
143
195
130
126
109
158
OPM %
21.87%
24.13%
24.49%
25.42%
23.97%
23.54%
22.1%
26.96%
24.49%
26.56%
21.73%
19.79%
21.19%
Other Income
9.44
9.39
14.34
11.23
15.51
16.89
13.56
16.66
21.07
108
18.32
18.85
-84.2
Interest
4.6
2.47
2.63
1.49
2.05
2.29
2.19
3.46
5.1
6.15
5.69
6.82
6.25
Depreciation
13.6
12.42
13.28
12.64
12.58
12.83
13.13
15.54
19.26
24.54
25.28
27.24
27.18
PBT
84.09
94.47
117
117
136
94.15
111
140
192
207
113
93.97
40.39
Tax %
19.21%
22.77%
24.41%
23.06%
23.92%
22.08%
20.64%
23.32%
23.72%
15.3%
22.36%
23.39%
85.14%
Net Profit
67.94
72.96
88.57
90.4
104
73.36
87.72
108
146
175
87.72
71.99
6
EPS in Rs
3.03
3.25
3.95
4.03
4.62
3.27
3.91
4.79
6.53
7.82
3.91
3.21
0.27
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
1,329
1,280
1,202
1,180
1,225
1,088
1,044
1,212
1,530
1,937
2,227
2,366
Expenses
1,153
1,105
1,027
1,055
1,084
947
858
960
1,189
1,463
1,679
1,843
Operating Profit
176
176
175
126
140
142
186
252
341
475
548
523
OPM %
13%
14%
15%
11%
11%
13%
18%
21%
22%
24%
25%
22%
Other Income
17
29
12
8
69
9
8
5
22
50
63
60
Interest
87
83
90
75
74
78
60
38
14
9
13
25
Depreciation
72
62
53
53
48
53
52
49
49
51
61
104
PBT
34
60
44
6
88
20
81
171
300
465
537
454
Tax %
49%
37%
75%
-33%
21%
-360%
29%
18%
21%
24%
23%
25%
Net Profit
17
37
11
7
70
90
58
140
238
356
415
341
EPS in Rs
0.75
1.72
0.48
0.33
3.12
4
2.57
6.26
10.58
15.85
18.5
15.2
Div. Payout %
73%
32%
52%
30%
3%
0%
8%
11%
9%
9%
11%
13%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
22
22
22
22
22
22
22
22
22
22
22
22
Reserves
514
682
687
686
746
832
897
1,028
1,257
1,582
1,976
2,283
Borrowings
552
629
583
590
548
483
335
151
52
70
181
273
Other Liabilities
877
870
794
857
849
792
733
513
399
449
550
655
Total Liabilities
1,964
2,203
2,087
2,156
2,165
2,129
1,988
1,715
1,730
2,123
2,729
3,234
Fixed Assets
523
898
861
834
799
799
758
739
754
769
914
930
CWIP
4
8
2
1
5
0
0
1
0
1
7
23
Investments
15
49
49
51
54
53
53
54
77
286
496
743
Other Assets
1,422
1,248
1,175
1,270
1,307
1,277
1,176
921
899
1,067
1,313
1,538
Total Assets
1,964
2,203
2,087
2,156
2,165
2,129
1,988
1,715
1,730
2,123
2,729
3,234
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
177
12
188
70
87
222
248
223
309
365
425
314
Investing
0
7
-7
-51
40
-25
-19
15
-166
-279
-309
-182
Financing
-168
-5
-134
-64
-118
-176
-210
-250
-145
-58
-67
-122
Net Cash Flow
9
14
47
-44
9
21
19
-12
-2
27
49
10
Free Cash Flow
177
16
180
52
103
209
245
209
263
339
361
218
CFO/OP
113
25
111
55
67
160
133
101
110
100
101
81
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
236
201
191
208
177
205
177
125
82
84
101
111
Inventory Days
187
218
203
189
206
248
188
167
142
97
86
98
Days Payable
278
331
326
295
259
420
319
173
100
80
100
94
Cash Conversion Cycle
145
88
69
102
124
33
46
119
125
102
87
115
Working Capital Days
66
-11
-27
1
50
38
54
71
75
67
63
74
ROCE %
10%
10%
10%
6%
10%
7%
11%
17%
25%
31%
28%
21%

Shareholding Pattern

As of Mar 2026
Promoters 59.27%
Public 22.72%
FIIs 7.14%
DIIs 5.67%
Others 5.15%
Government 0.04%
Total 99.99%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
59.20%
59.20%
59.21%
59.21%
59.26%
59.26%
59.29%
59.29%
59.29%
59.29%
59.29%
59.29%
59.27%
59.27%
59.27%
59.27%
59.27%
59.27%
59.27%
59.27%
59.27%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
7.58%
9.10%
9.84%
9.73%
8.65%
9.62%
8.31%
8.10%
7.14%
DIIs
2.27%
2.27%
2.24%
1.84%
1.84%
1.57%
1.50%
1.79%
1.76%
1.16%
1.79%
1.76%
2.30%
2.55%
2.97%
3.67%
4.39%
3.79%
4.13%
4.48%
5.67%
Government
0.25%
0.25%
0.25%
0.25%
0.25%
0.25%
0.05%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.01%
0.03%
0.03%
0.04%
0.04%
0.04%
0.04%
Public
30.90%
31.69%
30.57%
30.79%
30.90%
30.18%
29.87%
29.16%
29.03%
28.39%
26.55%
26.15%
25.13%
23.94%
22.76%
22.06%
22.58%
22.21%
23.07%
22.92%
22.72%
Others
7.38%
6.59%
7.73%
7.91%
7.75%
8.73%
9.29%
9.76%
9.92%
11.16%
12.37%
12.79%
5.72%
5.13%
5.15%
5.24%
5.07%
5.07%
5.18%
5.18%
5.15%
No. of Shareholders
43,468
50,859
58,373
60,406
62,292
58,681
64,022
63,342
63,192
65,220
81,539
87,816
93,051
1,00,295
1,10,534
1,07,549
1,11,067
1,15,501
1,26,319
1,21,939
1,22,574

Documents

Frequently Asked Questions about Elecon Engineering Company Ltd

What does Elecon Engineering Company Ltd do?
Elecon Engineering Company Ltd., incorporated in 1960. Company manufactures and sells power transmission and material handling equipment in India and internationally. In addition, it engages in the steel and non-ferrous foundry business. [1]
Where is Elecon Engineering Company Ltd (ELECON) listed?
Elecon Engineering Company Ltd is listed on the Indian stock exchanges. It is listed on NSE: ELECON and BSE: 505700. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Elecon Engineering Company Ltd belong to?
Elecon Engineering Company Ltd operates in the Industrials sector within the Electrical Equipment industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Elecon Engineering Company Ltd?
Elecon Engineering Company Ltd has a market capitalisation of approximately ₹11898.81 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Elecon Engineering Company Ltd?
The Price-to-Earnings (PE) ratio of Elecon Engineering Company Ltd is 34.33. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Elecon Engineering Company Ltd?
Over the past 52 weeks, Elecon Engineering Company Ltd has traded between a low of ₹352 and a high of ₹683. This range helps investors understand the stock's price volatility and recent trading levels.
Does Elecon Engineering Company Ltd pay dividends?
Yes, Elecon Engineering Company Ltd has a dividend yield of 0.38%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Elecon Engineering Company Ltd?
Elecon Engineering Company Ltd has a Return on Equity (ROE) of 22.17%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Elecon Engineering Company Ltd on Tapetide?
On Tapetide, you can view Elecon Engineering Company Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Elecon Engineering Company Ltd., incorporated in 1960. Company manufactures and sells power transmission and material handling equipment in India and internationally. In addition, it engages in the steel and non-ferrous foundry business. [1]

Website elecon.com
CEO Mr. Prayasvin Bhanubhai Patel BE, MBA
Employees 2,162
Listed 2000-05-17
Face Value ₹ 1
Issued Size 22,43,99,930

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