The shares of this small-cap stock traded flat despite the company received a new work order for the Manufacturing and Supply of Coal Mining Equipment worth Rs 53.61 crore.
With a market capitalization of Rs 1,868.96 crore, the shares of Eimco Elecon (India) Ltd were trading at Rs 3,240.00 per share, decreasing around 0.34 percent as compared to the previous closing price of Rs 3,251.00 apiece.
Reason for rise:-
According to the company filing, Eimco Elecon (India) Ltd received new orders worth Rs 53.61 Crores (excluding GST) from JMS Mining Private Limited for the Manufacturing and Supply of Coal Mining Equipment. Out of these orders, the order pertaining to the FY2025-26 worth Rs 23.18 Crore has been reduced.
Financial Analysis:-
Looking into the company’s financial performance, revenue magnified by 59 percent from Rs 59 crore in Q1FY24 to Rs 70 crore in Q1FY25, and during the same time frame, net profit magnified by 150 percent from Rs 6 crore and Rs 15 crore.
Remarkable return:-
The stock has given a multi-bagger return of 118.17 percent in just 6 months and 323.09 percent in a year. If an individual invested Rs 1 lakh a year ago, it would be worth now Rs 4.23 lakh.
Ratio analysis:-
Examining the company’s crucial ratio, return on equity inclined from 5.56 percent in FY22-23 to 9.98 percent in FY23-24, while during the same time frame return on capital employed also inclined from 7.17 percent to 12.51 percent. In contrast, the net profit margin (NPM) stands at 16.93 percent in fiscal year 23-24.
Shareholding pattern:-
In the company’s recent shareholding pattern, Foreign Institutional Investors own 74.06 percent while Retail shareholders own a 25.47 percent stake in the company, and Foreign Institutional Investors own a 0.1 percent stake.
Company profile:-
Elecon Engineering Company Limited designs and manufactures material handling equipment and industrial gear, and it also provides erection and commissioning services for its products. The Company’s operating segments are material handling and transmission equipment.
Written by:- Abhishek Singh
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