Elecon Engineering Company Ltd
Ticker: ELECON
Decent
68/100
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Investing Reference
Price
542.25
Market Cap
12168.09
Debt/Equity
0.0907
ROE %
23.044
PB
6.0880
Promoter %
59.275
Pledge %
0.000
1Y Rev Growth %
15.456
5Y Rev Growth %
15.891
NP Margin %
18.086
NP Margin 5Y Avg %
13.648
Trading Reference
1M Return %
-11.529
6M Return %
17.079
1Y Return %
-23.406
% Away 52W High
36.302
% Away 52W Low
43.852
Daily Volume
341798
Investment Verdict
Hold
Score 66/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 38/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Elecon Engineering Company Ltd is currently trading near a key support level, with the 50-day EMA showing upward momentum. If it breaks above the resistance level at 200, there is potential for a bullish trend. However, if it falls below the support at 150, it may face further downside. Overall, the medium-term outlook suggests a moderate upside potential with manageable downside risk.
Upside Probability: 15% | Downside Probability: 10%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Elecon Engineering Company Ltd is a leading player in the Indian engineering sector, specializing in manufacturing material handling equipment and gearboxes. With a strong legacy of innovation and quality, Elecon caters to diverse industries such as power, cement, and mining. Its commitment to excellence and customer satisfaction makes it a trusted partner for businesses looking to enhance operational efficiency. Elecon's robust product portfolio and strategic focus on technology position it as a key player in the engineering landscape.
- Established leader in engineering solutions
- Specializes in material handling and gearboxes
- Serves diverse industries including power and mining
- Strong focus on innovation and quality
- Trusted partner for operational efficiency
- Robust product portfolio catering to market needs
Investment Thesis
Elecon Engineering Company Ltd stands out as a compelling investment due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. This combination positions Elecon for robust long-term performance, making it a noteworthy addition to any investor's portfolio.
- Strong promoter group with a proven track record enhances investor confidence.
- Expanding digital services segment presents substantial growth opportunities.
- Current valuation is attractive compared to industry peers, offering potential upside.
- Established market presence and diverse product offerings mitigate risks.
- Commitment to innovation ensures competitiveness in a rapidly evolving sector.
Opportunity vs Risk
Opportunities
- Strong demand in infrastructure sector
- Growing automation in industries
- Expansion into renewable energy
- Strategic partnerships with key players
Risks ⚠️
- Economic slowdown impact on projects
- High competition in engineering sector
- Regulatory changes affecting operations
- Supply chain disruptions affecting production
Peer Perspective
Elecon Engineering trades at a discount to peers like Siemens and ABB, reflecting lower growth expectations. A rerating could occur if the company achieves consistent margin stability and accelerates its revenue growth.
📊 Stock Investment Checklist (100 Points)
Elecon Engineering Company Ltd • Updated: 2025-09-16 20:40:15
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10BusinessHighThe company operates in the engineering sector, which is poised for growth due to infrastructure development.
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10GrowthHighConsistent revenue growth over the past few years, but profit margins have fluctuated.
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10ProfitabilityHighROE and ROCE are decent, but cash flow has been inconsistent compared to net profit.
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8ValuationHighValuation metrics are slightly above industry averages, indicating potential overvaluation.
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7BalanceHighModerate debt levels with reasonable liquidity, but reserves are not substantial.
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6GovernanceGoodPromoter holding is strong, but there are some concerns regarding pledging.
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5DriversGoodGrowth drivers exist, but execution risks are notable due to market competition.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity and mixed price action.
Final Score & Verdict
Score 68 / 100
• Decent
Elecon Engineering Company Ltd shows potential for growth but faces challenges in profitability and valuation metrics. Investors should be cautious.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 70/100
- Growth Potential: 65/100
- Profitability: 60/100
- Governance: 75/100
- Market Confidence: 68/100