⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ELECON - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | ELECON | Market Cap | 8,933 Cr. | Current Price | 398 ₹ | High / Low | 717 ₹ |
| Stock P/E | 24.0 | Book Value | 85.8 ₹ | Dividend Yield | 0.50 % | ROCE | 29.1 % |
| ROE | 22.6 % | Face Value | 1.00 ₹ | DMA 50 | 425 ₹ | DMA 200 | 497 ₹ |
| Chg in FII Hold | -0.22 % | Chg in DII Hold | 0.35 % | PAT Qtr | 61.9 Cr. | PAT Prev Qtr | 78.9 Cr. |
| RSI | 45.0 | MACD | -11.7 | Volume | 6,49,296 | Avg Vol 1Wk | 6,29,210 |
| Low price | 348 ₹ | High price | 717 ₹ | PEG Ratio | 0.47 | Debt to equity | 0.12 |
| 52w Index | 13.6 % | Qtr Profit Var | -32.7 % | EPS | 22.5 ₹ | Industry PE | 33.0 |
📊 Core Financials
- Revenue growth: Stable but recent PAT declined to 61.9 Cr. from 78.9 Cr.
- Profit margins: EPS at 22.5 ₹, ROE 22.6%, ROCE 29.1% — strong efficiency
- Debt ratios: Low debt-to-equity at 0.12, healthy balance sheet
- Cash flows: Positive profitability supports cash generation
- Return metrics: ROE and ROCE above industry averages
💹 Valuation Indicators
- P/E Ratio: 24.0, below industry PE of 33.0, suggesting undervaluation
- P/B Ratio: ~4.64 (398 ₹ / 85.8 ₹), moderate
- PEG Ratio: 0.47, attractive and indicates undervaluation relative to growth
- Intrinsic Value: Current price appears fair to undervalued given strong returns
🏢 Business Model & Competitive Advantage
- Operates in industrial gear and transmission systems sector
- Strong competitive advantage through engineering expertise and diversified product base
- Industry demand supported by infrastructure and manufacturing growth
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 370–400 ₹ range
- Long-Term Holding: Recommended, strong fundamentals and undervaluation support sustained growth
✅ Positive
- High ROE (22.6%) and ROCE (29.1%) show strong capital efficiency
- Low debt-to-equity ratio (0.12) ensures financial stability
- P/E below industry average, PEG ratio at 0.47 highlights undervaluation
⚠️ Limitation
- Quarterly profit declined (-32.7%) showing earnings volatility
- Stock trading below 50 DMA (425 ₹) and 200 DMA (497 ₹), indicating weak momentum
📰 Company Negative News
- PAT dropped to 61.9 Cr. from 78.9 Cr.
- FII holding decreased (-0.22%)
🌟 Company Positive News
- DII holding increased (+0.35%)
- Dividend yield at 0.50% provides shareholder returns
🏭 Industry
- Industry PE at 33.0, ELECON trades at a discount, suggesting undervaluation
- Sector benefits from infrastructure expansion and industrial growth
🔎 Conclusion
- ELECON shows strong fundamentals with high returns and low debt
- Valuation is attractive compared to industry peers, though short-term earnings volatility is a concern
- Recommended for long-term holding, with entry near 370–400 ₹ offering good risk-reward potential