Shares of this small-cap Vijay Kedia stock jumped 14 percent after the release of financial results pertaining to Q1FY23-24. In the last one-month period, the scrip has gained over 25 percent from Rs 567.95 to the current price level.
The stocks of Elecon Engineering Company Limited opened flat at Rs 635 in Tuesday’s session and stayed within the range for the initial couple of hours. Post 12:00 PM, the shares started to soar and witnessed a closing price of Rs 722 today indicating a gain of 14 percent compared to the previous closing levels of Rs 633.30.
The scrip witnessed an intra-day high of Rs 748.90 which was also marked as the company’s new 52-week high price.
Such sharp movements were observed in the stock prices after the company, through a regulatory filing with the Bombay Stock Exchange (BSE) dated 11th July 2023, released the financial results for the quarter ending June 2023, i.e., Q1FY23-24.
The main highlight is the movement in the after-tax profits reported by the company. On a sequential basis, the profit numbers went up from Rs 68 crores during the March quarter to Rs 73 crores during the June quarter.
Moreover, the profits also rose on a YoY basis and took a shift from Rs 42 crores during June 2022 to Rs 73 crores in June 2023 indicating an increase of 74 percent.
Historically, the company has been successful in maintaining healthy net profit margins of 15 percent along with RoE and RoCE numbers of 18 percent and 22 percent respectively.
Ace investor Mr. Vijay Kedia has invested in the company and, according to the data available for the June 2023 quarter, he holds 20,00,000 equity shares equating to a 1.78 percent stake in the company. Currently, the holding value of his investment stands at Rs 144.4 crores.
Elecon Engineering Company Limited is a company based in India that is engaged in the business of manufacturing industrial gears and material handling equipment. The company generates a majority of its revenue from the sales of transmission equipment. It conducts business operations within as well as outside India.
Written by Amit Madnani
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