Shares of a company in ace investor Vijay Kedia’s portfolio have reached a record high of ₹ 935.00 apiece on the bourses and the company has crossed a market capitalisation of ₹ 10,000 crores. At 12:12 PM, its shares were trading at ₹ 929.95 apiece.
Elecon Engineering Company’s share price crossed the ₹ 10,000 crore mark on Friday. The company added nearly ₹ 6,000 crore worth of market capitalization this year.
So far this year, the share price of Elecon Engineering escalated by 159 per cent from ₹ 360.95 to ₹ 935.00 apiece, thereby delivering multibagger returns. If an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.59 lakhs today.
As per the company’s latest shareholding pattern, Vijay Kedia holds 20 lakh equity shares or a 1.78 per cent stake in the company. His holdings are worth ₹ 185.99 lakhs as per the company’s share price of ₹ 929.95 apiece.
Elecon Engineering Company designs and manufactures material handling equipment and incraft carriers through the acquisition of Benzlers- Radicon Group belonging to the David Brown Gear Systems.
Nuvama had recently initiated coverage on the company. After the company posted its results for the June quarter, the brokerage said that the management has maintained its consolidated revenue guidance of ₹ 2,000 crores for the financial year 2024, of which 40 per cent is likely to come from exports.
The company had posted a 72.44 per cent increase in its net profit to ₹ 72.96 crores in the June quarter of the current financial year, against ₹ 42.31 crores reported in the corresponding quarter of the previous financial year. Its revenue increased by 26.43 per cent to ₹ 414.34 crores from ₹ 327.72 crores, during the same period.
With a market capitalization of ₹ 10,094 crores, Elecon Engineering is a small-cap company. It has an ideal return on equity of 23.52 per cent and an ideal debt-to-equity ratio of 0.04. Its shares were trading at a price-to-earnings ratio (P/E) of 37.64, which is higher than the industry P/E of 32.16, indicating that the stock might be overvalued as compared to its peers.
The company’s promoters hold a 59.29 per cent stake in the company followed by retail investors with 36.74 per cent, foreign institutions with 2.81 per cent, mutual funds with 1.12 per cent and other domestic institutions with 0.04 per cent.
Written by Simran Bafna
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