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INVESTMENT INSIGHTS

Check Before You Invest : Elecon Engineering Company Ltd

BSE: 505700 NSE: ELECON ISIN: INE205B01031
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

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 quality company, based on a 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 neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 17.5% , indicating slower growth.
Q.2 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.3 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.4 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 Historic Median
Gross Profit Margin 27.1 23.9
Operating Profit Margin 24.79 23.11
Net Profit Margin 18.17 15.72
Q.5 Return on Asset of Elecon Engineering Company Ltd?
Elecon Engineering Company Ltd Return on Asset is 16.77(x), which is above its 5 year historical median of 13.2(x), indicating improved asset utilization efficiency.
Q.6 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 historical median of 18.94%, indicating the business is making better use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Elecon Engineering Company Ltd?
Elecon Engineering Company Ltd Cash conversion cycle is 75 , below its historical median of 84 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.92 0.84
ROE 22.66 18.94
ROCE 31.04 24.75
Cash Conversion Cycle 75 84
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 0.17 , 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, indicating the business is able to service its debt comfortably.

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 1.47% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,871.1 101.1
Gross Profit 507 9.6
Operating Profit 464 9
Net Profit 340 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.92 0.89
ROE 22.66 11.68
ROCE 31.04 14.29
Cash Conversion Cycle 75.25 101

Valuation & price assessment

Q.1 Stock return of Elecon Engineering Company Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 29.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 29.3% 66.6% 22.5% -5.1%
Q.3 Valuation ratios of Elecon Engineering Company Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 18.64 7.14 46.24
Price to Book 4.74 0.49 2.79
Price to Sales 4.54 0.53 2.66
EV to EBITDA 16.04 8.61 15.72

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