ELECON - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | ELECON | Market Cap | 11,960 Cr. | Current Price | 533 ₹ | High / Low | 717 ₹ |
| Stock P/E | 33.7 | Book Value | 91.3 ₹ | Dividend Yield | 0.38 % | ROCE | 22.4 % |
| ROE | 19.2 % | Face Value | 1.00 ₹ | DMA 50 | 471 ₹ | DMA 200 | 486 ₹ |
| Chg in FII Hold | -0.96 % | Chg in DII Hold | 1.19 % | PAT Qtr | 97.0 Cr. | PAT Prev Qtr | 61.9 Cr. |
| RSI | 63.2 | MACD | 13.8 | Volume | 37,00,834 | Avg Vol 1Wk | 12,37,056 |
| Low price | 352 ₹ | High price | 717 ₹ | PEG Ratio | 1.45 | Debt to equity | 0.12 |
| 52w Index | 49.8 % | Qtr Profit Var | -22.7 % | EPS | 21.2 ₹ | Industry PE | 34.7 |
📊 Financials: ELECON shows solid fundamentals. Quarterly PAT rose to 97 Cr from 61.9 Cr, reflecting strong earnings growth. ROCE at 22.4% and ROE at 19.2% highlight efficient capital utilization and profitability. EPS stands at 21.2 ₹, supporting healthy earnings. Debt-to-equity is low at 0.12, indicating a strong balance sheet and manageable leverage.
💰 Valuation: The stock trades at a P/E of 33.7, slightly below the industry average of 34.7, suggesting fair valuation. Book value is 91.3 ₹, with current price at 533 ₹, implying a P/B ratio of ~5.8. PEG ratio of 1.45 indicates valuation is somewhat stretched relative to growth. Intrinsic value appears close to current levels, suggesting the stock is fairly priced.
⚙️ Business Model & Health: ELECON operates in industrial machinery and engineering, with strong presence in gear manufacturing and material handling equipment. Competitive advantage lies in diversified product offerings and established market presence. Overall health is strong, supported by profitability, low debt, and consistent growth.
📈 Entry Zone: RSI at 63.2 indicates mildly overbought levels. Support is near 470 ₹, resistance at 717 ₹. Entry around 480–500 ₹ offers a favorable long-term opportunity. Long-term holding is attractive given strong fundamentals and industry demand outlook.
Positive
- ⚙️ [Market Presence](ca://s?q=ELECON_market_presence): Established brand in industrial machinery and engineering.
- 📈 [Profitability](ca://s?q=ELECON_profitability): High ROCE (22.4%) and ROE (19.2%).
- 💸 [Low Debt](ca://s?q=ELECON_debt_levels): Debt-to-equity ratio of 0.12 ensures financial stability.
Limitation
- 📉 [Valuation](ca://s?q=ELECON_valuation): P/B ratio (~5.8) is relatively high.
- ⚠️ [Profit Variation](ca://s?q=ELECON_profit_variation): Quarterly profit variation (-22.7%) indicates earnings volatility.
- 📊 [FII Outflow](ca://s?q=ELECON_FII_outflow): Foreign investors reduced holdings by -0.96%.
Company Negative News
- 📉 [FII Reduction](ca://s?q=ELECON_FII_reduction): Decline in foreign institutional holdings.
- 📊 [Profit Volatility](ca://s?q=ELECON_profit_volatility): Quarterly profit variation shows inconsistency.
Company Positive News
- 📈 [DII Support](ca://s?q=ELECON_DII_support): Domestic institutions increased holdings by 1.19%.
- 💹 [Profit Growth](ca://s?q=ELECON_profit_growth): PAT rose to 97 Cr from 61.9 Cr.
Industry
- 🏭 [Industrial Growth](ca://s?q=Indian_industrial_growth): Sector expanding with infrastructure and manufacturing demand.
- 📊 [Industry PE](ca://s?q=Industrial_machinery_PE): Sector average P/E is 34.7, close to ELECON’s valuation.
Conclusion
✅ ELECON demonstrates strong fundamentals, profitability, and low debt, making it a fundamentally sound investment. While valuations are slightly stretched, growth prospects and industry demand justify the premium. Entry around 480–500 ₹ is favorable, and long-term holding is recommended given the company’s resilience and sector outlook.