Elecon Engineering Company Ltd Stock Analysis

BSE: 505700 | NSE: ELECON | Engineering - Industrial Equipments | Mid Cap

BSE Share Price 06-Dec-2022 18:01
441.65 -8.55 (-1.90%)

DeciZen - Make an Informed Decision on Elecon Engg.

Overall Rating

1. Quality

2. Valuation

Overvalued

3. Price Trend

Elecon Engg. Price Chart

P/E Ratio (SA) :
38.90
Market Cap :
5,051.2 Cr.
52-wk low :
129.3
52-wk high :
475.8
Bole Toh?

1. Is Elecon Engineering Company Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Elecon Engineering Company Ltd is a average quality company.

2. Is Elecon Engineering Company Ltd undervalued or overvalued?

The key valuation ratios of Elecon Engineering Company Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Elecon Engineering Company Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Elecon Engineering Company Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Elecon Engg.:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Elecon Engineering Company Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 5.6%6.8%6.2%7.2%6%4.4%4.7%10.4%6.8%11.9%-
Value Creation Index -0.6-0.5-0.6-0.5-0.6-0.7-0.7-0.3-0.5-0.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 595501503980923911955836796884993
YoY Gr. Rt. %--15.8%0.4%94.7%-5.7%-1.3%4.9%-12.5%-4.7%11.1%-
Adj EPS 2.82.52.42.22.10.51.16.53.28.911.6
YoY Gr. Rt. %--12.5%-3.3%-7.2%-4.1%-76.3%112%509.4%-50.6%177.7%-
BVPS (₹) 50.945.146.966.46565.16669.77380.986.6
Adj Net Profit 2626.725.82423.65.611.972.535.899.4130
Cash Flow from Ops. 20622.721812.819610671170220178-
Debt/CF from Ops. 1.211.41.144.32.44.76.72.110.6-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 4.5%-0.9%-2.5%11.1%
Adj EPS 13.7%33.2%102.9%177.7%
BVPS 5.34.5710.8
Share Price 24.7% 38.2% 140.8% 128.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 5.75.55.23.93.30.81.69.54.511.513.8
Op. Profit Mgn % 17.52021.21618.412.18.69.78.920.721.6
Net Profit Mgn % 4.45.35.12.52.60.61.28.74.511.213.1
Debt to Equity 0.50.50.50.80.60.70.60.50.30.10
Working Cap Days 499417389268368399408466449332176
Cash Conv. Cycle 133-172983132158150135859482

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 13.80%

Net Profit is growing at healthy rate in last 3 years 102.94%

Sales growth has been subdued in last 3 years -2.54%

Sales growth is not so good in last 4 quarters at 3.79%

Latest Financials - Elecon Engineering Company Ltd.

Standalone Consolidated
TTM EPS (₹) 11.6 16.5
TTM Sales (₹ Cr.) 993 1,317
BVPS (₹.) 86.6 100.9
Reserves (₹ Cr.) 949 1,110
P/BV 5.20 4.45
PE 38.90 27.28
From the Market
52 Week Low / High (₹) 129.30 / 475.75
All Time Low / High (₹) 0.47 / 475.75
Market Cap (₹ Cr.) 5,051
Equity (₹ Cr.) 22.4
Face Value (₹) 2
Industry PE 22.4

Management X-Ray of Elecon Engg. :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *40.3532.9032.9023.4911.2911.2911.2911.283.760.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Elecon Engg.

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Elecon Engineering Company Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Elecon Engg. on 06-Dec-2022 18:01 is : 441.6.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 06-Dec-2022 18:01 the market cap of Elecon Engg. stood at ₹ 5,051.2.
The latest PE ratio of Elecon Engg. as of 06-Dec-2022 18:01 is 38.90.
The latest PB ratio of Elecon Engg. as of 06-Dec-2022 18:01 is 5.20
The 52-week high of Elecon Engg. is ₹ 475.8 and the 52-week low is ₹ 129.3.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Elecon Engg. is ₹ 992.8 ( Cr.) .

About Elecon Engineering Company Ltd

Elecon Group was founded in the year 1951 in Goregaon, Mumbai by Late Shri Ishwarbhai B. Patel. Initially, the Company manufactured conveyor systems with a focus on Engineering, Procurement and Construction projects in India. Elecon Engineering Company Limited was incorporated as a Private Limited Company in January 1960. In May 1960, the Company relocated its base to the current location in Vallabh Vidyanagar, Gujarat. Later in June 1962, the Company was listed on the Bombay Stock Exchange Limited and in November 2006 on National Stock Exchange of India Limited.

The company is a trademark that reflects leadership and relentless innovations in the power transmission industry, and as an integrated solution provider for the entire value chain of material handling systems in India.

The company was established in Goregaon, Mumbai by Late Shri Ishwarbhai B. Patel. A company fundamentally driven by “excellence” around technical innovations had its early focus on engineering, procurement and construction projects. After relocating its base to Anand, Gujarat in 1960, Elecon continued to innovate in manufacturing Power Transmission Equipment and established a dedicated Gear Division in 1976.

Today, Seven decades later since its foundation, Elecon stands as an attestation to the formidable efforts and the visions of its founding fathers and their successors. Elecon reigns as the largest industrial gear manufacturing company in Asia, located in the Anand city of Gujarat. Since its inception, Elecon’s prime focus has remained on research & development, innovation and acquiring new-age technological advancements.

Business area of the company

The company is involved in the design and manufacturing of Material Handling Equipment and Industrial Gears and also involved in providing erection and commissioning solutions for its products.

Products

Power Transmission Products

  • Helical/Bevel Helical Gearboxes
  • Planetary Gearboxes
  • Worm Gearboxes
  • Couplings
  • High Speed Gearboxes
  • Wind Turbine Gearboxes
  • Marine Gearboxes
  • Loose Gears
  • Custom Buil Gearboxes

Material Handling Equipment Solutions

  • RMHS (Raw Material Handling System)
  • Specialized Conveyors
  • Feeders
  • Wagon Tippler & Associated Equipment
  • Crushers
  • Cable Reeling Drum
  • Idlers & Pulleys
  • Magnates/Weighers/Metal Detectors
  • Wagon & Truck Loaders
  • Scrapers / Reclaimers
  • Bagging & Weighing Machines
  • Stackers/ Reclaimers
  • Port Equipment

Foundry Division

Elecon’s Foundry Division (EFD) is ISO 9001-2008 certified and caters to machining and foundry needs of Elecon Engineering. After five decades expertise in the industry, EFD now provides casting and machining services to several other companies other than Elecon group with its ultra-modern amenities to fulfil high quality requirements. The Ferrous and Non-Ferrous Foundry is spread over ten acres of land, and has state of the art melting, moulding and heat treatment and quality assurance facilities.

History and milestones

  • 1960: Elecon was established to manufacture elevators and conveyors (Elecon) in Bombay, now Mumbai.
  • 1961: ELECON became a Public Limited Company
  • 1963: Installation of India's first CNC Machine at Elecon
  • 1967: First Stacker cum reclaimer machine was installed in year 1967 at santaldih TPS, WBSEB and worked well for 45 years
  • 1969: Collaboration with Alfred Wiseman for worm Gearboxes
  • 1974: India’s biggest MHE Order From Neyveli lignite
  • 1975: Collaboration with WGW (TGW) Thyssen Getriebe Works for Spiral Bevel & Helical Gearboxes
  • 1976: Foundation of ELECON-GEAR Division (New Setup for Gear Manufacturing)
  • 1985: First export order from EGAT, Thailand collaboration with Renk AG, Germany for High Speed Gearboxes and Bucket wheel & Slewing Planetary Gearboxes
  • 1992: Collaboration with Renk AG continues. Collaboration with SIME France for Hydrokinetic fluid Couplings
  • 1994: First Gear Company received ISO Certificate in India
  • 1998: Developed Lift Gear Box - TM 500 Model for M/S. Kinetic Transportation Products Ltd. (Indian counter part of Hyundai elevator Co., Korea)
  • 1999: Prestigious Order From Indian Navy - “CODOG” Gearbox
  • 2008: Collaboration with M/S. Haisung Industrial System Co. Ltd., South Korea
  • 2010: 1st International Acquisition by ELECON of UK based Benzlers & Radicon Group
  • 2011: Launched brand ambassador 'STACKY RECLAIMY' & 'ROLLY GEARRY' for ELECON MHE & Gear division
  • 2013: Commissioned an ultra-modern manufacturing facility, the Bhanubhai Memorial Centre of Excellence (BMCE)
  • 2015: Longest Pipe Conveyor installed successfully at Manikgarh Cement, India
  • 2016: ELECON received the biggest order from Indian Navy
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