CARE Equity Research assigned fundamental grade of 4/5, indicating very good fundamentals for Elecon Engineering Company (EECL). The grade draws strength from the leadership position in the gears segment coupled with a healthy order book backed by the demand from the user industries.
EECL is a market leader in the domestic -gears segment with around 25% market share in the domestic transmission equipment segment. Being part of the Elecon group that largely focuses on the engineering sector adds to the operational strength to EECL in terms of sourcing some of the inputs like castings from the group company and outsourcing some portion of job-work to the group company.
