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Elecon Engineering Company Ltd. Stock Analysis

Small Cap
Evaluated by 1299 users | BSE: 505700 | NSE: ELECON |
Engineering - Industrial Equipments
Elecon Engineering Company, founded in 1951, is engaged in delivering power transmission solutions and material handling equipment. The company caters to the needs of various sectors like steel, fertilisers, cement, coal, lignite and iron ore mines, sugar, power stations and port mechanization...

Analysis of Financial Track Record

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.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 12.78%11.9%5.62%6.75%6.2%7.16%6.04%4.38%4.69%10.36%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,1981,332595501503980923911955836
Y-o-Y Gr. Rt.-11.2%-55.3%-15.8%0.4%94.7%-5.7%-1.3%4.9%-12.5%
Adjusted EPS (Rs.) 7.927.542.82.452.372.22.110.51.066.46
Y-o-Y Gr. Rt.--4.8%-62.9%-12.5%-3.3%-7.2%-4.1%-76.3%112%509.4%
Book Value per Share (Rs.) 42.4947.950.9345.1446.8566.416565.1365.9569.72
Adjusted Net Profit 73.5702626.725.82423.65.611.972.5
Net Op. Cash Flow (Rs. Cr.) 88.918220622.721812.819610671170
Debt to Cash Flow from Ops 5.962.961.2411.381.1444.252.354.696.682.07
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Elecon Engineering Company Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -3.9%10.7%-3.3%-12.5%
Adjusted EPS -2.2%22.2%45.2%509.4%
Book Value per Share 5.78.32.45.7
Share Price -11.3% -21% -30.2% -20.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 20.416.685.655.515.153.883.250.771.629.53
Operating Profit Margin (%) 15.7915.617.5219.9621.1716.0418.412.18.619.66
Net Profit Margin (%) 6.145.264.375.325.132.452.560.611.248.68
Debt to Equity 1.341.210.540.530.490.790.630.680.640.45
Working Capital Days 275285499417389268368399408466
Cash Conversion Cycle 137110133-172983132158150135
Entity Percentage Holding
Promoters 59.20%
Institutions 2.59%
Non-Institutions 37.97%
Pledged *46.2446.2146.2146.1746.1745.9845.9840.3540.3532.90
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Elecon Engineering Company Ltd.'s performance infers:

Elecon Engineering Company Ltd. earnings have grown by 22.2%, whereas share price has depreciated -21% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Elecon Engineering Company Ltd. share prices over the last 10 years. Here is what we found out:

Elecon Engineering Company Ltd. share price has depreciated -13.1% annually over the past ten years.

Elecon Engineering Company, founded in 1951, is engaged in delivering power transmission solutions and material handling equipment. The company caters to the needs of various sectors like steel, fertilisers, cement, coal, lignite and iron ore mines, sugar, power stations and port mechanization in India and abroad. It has emerged as the largest gear manufacturing company in Read More

Elecon Engineering Company, founded in 1951, is engaged in delivering power transmission solutions and material handling equipment. The company caters to the needs of various sectors like steel, fertilisers, cement, coal, lignite and iron ore mines, sugar, power stations and port mechanization in India and abroad. It has emerged as the largest gear manufacturing company in Asia.

Headquartered in India, company has offices located in countries namely Singapore, South Africa and Dubai. Elecon has formed EMTICI Engineering -- a marketing and servicing company for Elecon products in India. The company has network of 90 dealers and 30 resident engineers. The company’s material handling equipment plant is spread over on an area of 1,17,000 sq.mt, and is located at Vallabh Vidyanagar.

Divisions

Power Transmission solutions- This division of company design and manufactures worm gears, parallel shaft and right angle shaft, helical and spiral bevel helical gears, fluid, geared and flexible couplings and planetary gear boxes. These products are supplied to sectors such as sugar, cement, chemical, fertilizer, steel, plastic extrusion and rubber. The company has received ISO 9001:2000 certification for its quality management.

Material handling equipments- Under this, the  company manufactures products such as belt conveyors, stacker-cum-reclaimers, pusher cars, idlers and pulleys, barrel type blender reclaimers, ship loaders and unloaders, stacker, bridge type bucket wheel reclaimers, crawwler mounted bucket wheel excavators, wagon tipplers and side arm chargers, crushers and feeders. This division caters the need of various industries such as steel, fertilizer, cement, coal, lignite and iron are mines, power stations and port mechnisation in India and abroad.

Wind Power- Elecon manufactures wind turbines of 300 KW and 600 KW capacity at the unit located at Vallabh Vidynagar in Gujarat. The company has entered into technical collaboration with Turbowindof Belgium with an aim to manufacture quality wind turbines.

Milestones

  • 1951- The company was incorporated.
  • 1975-1985- The company collaborated with WGW (TGW) Thyssen Getribe Works for manufacturing of Sprial Bevel and Helical Gearboxes.
  • 1985-1992- The company collaborated with Renk AG, Germany for high speed gearboxes, bucket wheel and slewing planetary gearboxes, marine gearboxes and vertical roller mill gearboxes.
  • 1992- Elecon Emgineering formed a tie up with Renk AG, Germany on project to project basis. It also collaborated with SIME France for Hydrokinetic Fluid Couplings from for various sizes up to CDR / CDRP 870.
  • 1999-2002- It collaborated with PIV, Germany for Posired-II-Sprial Bevel and Heli-Bevel drives gearboxes.
  • 1998- It developed Lift Gear Box-TM 500 Model for Kinetic Transportation Products.
  • 1999- Elecon produced Lift Gear Box-G140 Model for Bharat Bijlee.
  • 2000- Elecon Engineering developed Lift Traction Machine-W140 Model for Schindler India.
  • 2003- The company developed Elevator Traction Machine Model - L127.
  • 2004- It developed Elevator Traction Machine Model - L163.
  • 2005- The company developed Elevator Traction Machine Model - L115.
  • 2007- The company collaborated with Renk AG, Germany for Vertical Roller Mill Gearboxes, KPAV type upto size 200 and output torque 1040 KNM.
  • 2008- The company collaborated with Haisung Industrial System Co., South Korea

Future Plans

Elecon Engineering Company will diversify in various businesses in order to widen its product portfolio.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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