Check Before You Invest : Elecon Engineering Company Ltd

Snapshot

Q.1 Which industry/sub-sector does Elecon Engineering Company Ltd belong to?

Elecon Engineering Company Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q.2 Is Elecon Engineering Company Ltd a good quality company?

Elecon Engineering Company Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Elecon Engineering Company Ltd undervalued or overvalued?

Elecon Engineering Company Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Elecon Engineering Company Ltd a good buy now?

Elecon Engineering Company Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Elecon Engineering Company Ltd?

Elecon Engineering Company Ltd revenue growth is 17% for FY-2025, which is below its 5-year CAGR of 17.49%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Elecon Engineering Company Ltd?

Elecon Engineering Company Ltd Return on capital employed is 31.04% for FY-2025, which is above its 5-year historical median of 24.75%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Elecon Engineering Company Ltd?

Elecon Engineering Company Ltd Return on Asset is 16.77%, which is above its 5-year historical median of 13.2%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Elecon Engineering Company Ltd?

Elecon Engineering Company Ltd Return on equity is 22.66% for FY-2025, which is above its 5-year historical median of 18.94%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Elecon Engineering Company Ltd?

Elecon Engineering Company Ltd Cash conversion cycle is 75 days, below its 5-year historical median of 84 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.92	0.84
ROE	22.66	18.94
ROCE	31.04	24.75
Cash Conversion Cycle	75 days	84 days

Q.6 Gross Profit margin of Elecon Engineering Company Ltd?

Elecon Engineering Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 27.1% for FY-2025, which is above its 5-year median of 23.9%, indicating increasing margins.

Q.7 Operating Profit Margin of Elecon Engineering Company Ltd?

Elecon Engineering Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 24.79% for FY-2025, which is above its 5-year median of 23.11% indicating increasing margins.

Q.8 Net Profit Margin of Elecon Engineering Company Ltd?

Elecon Engineering Company Ltd Net Profit Margin is 18.17% for FY-2025, is above with its 5-year median of 15.72%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	27.1	23.9
Operating Profit Margin	24.79	23.11
Net Profit Margin	18.17	15.72

Q.9 Debt to Equity ratio of Elecon Engineering Company Ltd?

Elecon Engineering Company Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.34, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Elecon Engineering Company Ltd?

Elecon Engineering Company Ltd Debt to cash flow from operations is 0.01, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Elecon Engineering Company Ltd?

Promoters hold 59.27% of the Elecon Engineering Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Elecon Engineering Company Ltd vs industry peers?

Elecon Engineering Company Ltd revenue CAGR is 17.49%, compared to the industry median CAGR of 12.01%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	17	12
Gross Profit Growth	13.4	NAN
Operating Profit Growth	12.1	NAN
Net Profit Growth	12.2	26.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.92	0.91
ROE	22.66	12.81
ROCE	31.04	15.04
Cash Conversion Cycle (days)	75.25	107

Valuation & price assessment

Q.1 Stock return of Elecon Engineering Company Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 32.3% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	32.3%	62.4%	32.2%	-11.5%

Q.3 Valuation ratios of Elecon Engineering Company Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	23.87	34.65	29.52
Price to Book	5.55	5.70	2.90
Price to Sales	5.64	5.29	2.94
EV to EBITDA	20.49	20.98	15.76

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