Ace investor, Vijay Kedia, has increased his stake in Elecon Engineering Company, a small-cap stock that has given multibagger returns, according to the latest filings. As per the latest corporate shareholdings, the marquee investor publicly holds 16 stocks with a net worth of over ₹ 771.9 Crore.
Elecon Engineering Company is engaged in the design and manufacturing of material handling equipment and industrial gears. In addition, it provides construction and commissioning solutions for its products. Moreover, it has ventured into the manufacturing of custom-made gearboxes for steel mills, high-speed turbines, satellites for ISRO and also for naval aircraft carriers.
According to the recent shareholding data released on the exchanges, the veteran investor holds a 1.94 percent stake or 21,75,000 equity shares in the company as of September 2022. Earlier, he held 20,75,000 or a 1.85 percent stake in the company. Therefore he has increased his stake by 0.09 percent or has bought 1 lakh shares of the company.
Elecon Engineering’s share price is in the green and has been on a rise. In the past month, it has increased by 23.69 percent. In fact, it has increased by 148.29 percent in the past year. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.48 lakhs.
Similarly, its share price has increased by 397.02 percent in the last five years. Therefore, if investors would have invested ₹ 1 lakh five years ago, the value of their holdings would have been ₹ 4.97 lakhs.
Elecon Engineering is a small-cap company with a market capitalization of 4678 crores. It has a return on equity of 14.27 percent and an ideal debt-to-equity ratio of 0.05. Its shares are trading at a price-to-equity (PE) ratio of 25.33, which is significantly lower than the industry PE of 40.75, indicating that the stock might be undervalued. Its promoters hold a 59.29 percent stake in it.
The company posted an 82.33 percent increase in its net profit to ₹ 64.51 crore in September 2022 (Q2FY23), against ₹ 35.38 crore in the corresponding quarter last year. Further, its sales rose 23.75 percent to ₹ 388.59 crore in September 2022, against ₹ 314.02 crore in September 2021.
Written by Simran Bafna
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