Is Eimco Elecon(I) overvalued or undervalued?

As of April 15, 2025, Eimco Elecon(I) is considered very expensive and overvalued with a PE ratio of 38.55, an EV to EBITDA ratio of 36.90, and a Price to Book Value of 3.85, despite outperforming the Sensex with a 1Y return of 32.79%.

As of 15 April 2025, the valuation grade for Eimco Elecon(I) has moved from expensive to very expensive, indicating a significant shift in its perceived valuation. The company is currently overvalued based on its key financial ratios, which include a PE ratio of 38.55, an EV to EBITDA ratio of 36.90, and a Price to Book Value of 3.85. These figures suggest that the stock is trading at a premium compared to its earnings and asset value.<BR><BR>In comparison to its peers, Eimco Elecon(I) has a lower PE ratio than Thermax (66.31) and BEML Ltd (62.34), but still maintains a high valuation relative to other companies in the industrial manufacturing sector. The PEG ratio of 1.83 further supports the notion of overvaluation, especially when compared to peers like ISGEC Heavy, which is rated attractive with a PEG of 3.24. Notably, Eimco Elecon(I) has outperformed the Sensex significantly over various time frames, including a 1Y return of 32.79% compared to the Sensex's 7.62%, reinforcing the narrative of its current overvaluation despite strong recent performance.

What does Eimco Elecon(I) do?

Eimco Elecon (India) Ltd is a small-cap company established in 1974, specializing in manufacturing equipment for underground and opencast mining. As of March 2025, it reported net sales of 64 Cr and a net profit of 15 Cr, with a market cap of Rs 1,499 Cr.

Overview:<BR>Eimco Elecon (India) Ltd is a small-cap company in the industrial manufacturing sector, specializing in the manufacture and marketing of equipment for underground and opencast mining.<BR><BR>History:<BR>Established in 1974, Eimco Elecon (India) Ltd was promoted as a joint venture between Elecon Engineering Company and Envirotech Corporation, a subsidiary of Baker Hughes. The latest quarterly results reported net sales and net profit for the period ending March 2025.<BR><BR>Financial Snapshot:<BR>- Net Sales: 64 Cr (Quarterly Results - Mar 2025)<BR>- Net Profit: 15 Cr (Quarterly Results - Mar 2025)<BR>- Market Cap: Rs 1,499 Cr (Small Cap)<BR><BR>Key Metrics:<BR>- P/E: 39.00<BR>- Industry P/E: 38<BR>- Dividend Yield: 0.19%<BR>- Debt Equity: -0.04<BR>- Return on Equity: 9.98%<BR>- Price to Book: 3.90<BR><BR>Contact Details:<BR>Address: Anand-Sojitra Road, Vallabh Vidyanagar Anand Gujarat : 388120<BR>Tel: 91-2692-230502/230602<BR>Email: investor@eimcoelecon.in<BR>Website: http://www.eimcoelecon.co.in

Who are in the management team of Eimco Elecon(I)?

As of March 2022, the management team of Eimco Elecon(I) includes Chairman P M Patel, Directors P C Amin, Nirmal Bhogilal, Manjuladevi Shroff, Reena P Bhagwati, Executive Directors Prayasvin Patel and Mukulnarayan Dwivedi, Company Secretary Rikenkumar Dalwadi, and Additional Independent Director Venkatraman Srinivasan. The team consists of a mix of executive and independent directors overseeing the company's governance and strategy.

As of March 2022, the management team of Eimco Elecon(I) includes the following members:<BR><BR>1. P M Patel - Chairman (Non-Executive)<BR>2. P C Amin - Director<BR>3. Nirmal Bhogilal - Independent Director<BR>4. Manjuladevi Shroff - Independent Director<BR>5. Reena P Bhagwati - Independent Director<BR>6. Prayasvin Patel - Executive Director<BR>7. Rikenkumar Dalwadi - Company Secretary & Compliance Officer<BR>8. Mukulnarayan Dwivedi - Executive Director<BR>9. Venkatraman Srinivasan - Additional Independent Director<BR><BR>This team comprises a mix of executive and independent directors, contributing to the governance and strategic direction of the company.

Has Eimco Elecon(I) declared dividend?

Eimco Elecon (India) Ltd has declared a 50% dividend, amounting to ₹5 per share, with an ex-date of June 14, 2024. The company has demonstrated strong total returns over various periods, with a 5-year total return of 868.19%.

Eimco Elecon (India) Ltd has declared a 50% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 50%<BR>- Amount per share: 5<BR>- Ex-date: Jun-14-2024<BR><BR>Dividend Yield: 0.19%.<BR><BR>Total Returns by Period:<BR>In the last 6 months, the price return was 0.15%, the dividend return was 0.20%, resulting in a total return of 0.35%.<BR><BR>Over the past year, the price return reached 36.05%, with a dividend return of 0.50%, leading to a total return of 36.55%.<BR><BR>In the 2-year period, the price return was an impressive 346.38%, while the dividend return contributed 1.68%, culminating in a total return of 348.06%.<BR><BR>For the 3-year period, the price return soared to 625.31%, with a dividend return of 4.13%, resulting in a total return of 629.44%.<BR><BR>In the last 4 years, the price return was 570.38%, and the dividend return was 6.12%, giving a total return of 576.5%.<BR><BR>Finally, over the 5-year period, the price return was 858.89%, with a dividend return of 9.30%, leading to a total return of 868.19%.<BR><BR>Overall, Eimco Elecon (India) Ltd has shown a strong performance in terms of total returns, significantly boosted by its declared dividends, indicating a positive trend for investors. The consistent growth in returns over multiple periods highlights the company's robust financial health.

Who are the peers of the Eimco Elecon(I)?

Eimco Elecon(I) peers include Kaynes Tech, Honeywell Auto, Jyoti CNC Auto., and others. Kaynes Tech leads with a 1-year return of 65.93%, while Eimco Elecon(I) has a return of 15.55%.

Peers: The peers of Eimco Elecon(I) are Kaynes Tech, Honeywell Auto, Jyoti CNC Auto., LMW, Jupiter Wagons, MIC Electronics, Gala Precis. Eng, Mamata Machinery, ICE Make Refrig., and Aimtron.<BR><BR>Quality Snapshot: Excellent management risk is observed at Honeywell Auto and Jyoti CNC Auto., while Average management risk is found at Kaynes Tech, LMW, Jupiter Wagons, MIC Electronics, Gala Precis. Eng, Mamata Machinery, and ICE Make Refrig., and the rest. Good growth is noted at Kaynes Tech, Jyoti CNC Auto., Eimco Elecon(I), Gala Precis. Eng, Mamata Machinery, ICE Make Refrig., and the rest, while Average growth is seen at Honeywell Auto, LMW, and Jupiter Wagons, and the rest. Excellent capital structure is present at Honeywell Auto, LMW, Eimco Elecon(I), Mamata Machinery, and ICE Make Refrig., while Good capital structure is found at Kaynes Tech, Jyoti CNC Auto., Gala Precis. Eng, and the rest.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Kaynes Tech at 65.93%, while the lowest is Honeywell Auto at -26.32%. Eimco Elecon(I) has a 1-year return of 15.55%, which is higher than Honeywell Auto but lower than Kaynes Tech. Additionally, the peers MIC Electronics, Jupiter Wagons, and LMW have negative six-month returns.

Who are the top shareholders of the Eimco Elecon(I)?

The top shareholders of Eimco Elecon(I) include Aakaaish Investments Private Limited with 24.91%, followed by 22 Foreign Institutional Investors holding 0.45%, and individual investors at 20.51%. There are no mutual funds invested, and the highest public shareholder is The Hongkong And Shanghai Banking, which holds 0%.

The top shareholders of Eimco Elecon(I) include a majority of promoters, with Aakaaish Investments Private Limited holding the largest share at 24.91%. Additionally, there are 22 Foreign Institutional Investors (FIIs) who collectively hold 0.45% of the shares. Individual investors account for 20.51% of the holdings. It's worth noting that there are no mutual funds currently invested in the company, and the highest public shareholder is The Hongkong And Shanghai Banking, which holds 0%.

How big is Eimco Elecon(I)?

As of 24th July, Eimco Elecon (India) Ltd has a market capitalization of 1,331.00 Cr, with Net Sales of 227.45 Cr and a Net Profit of 38.55 Cr reported in the latest four quarters.

As of 24th July, Eimco Elecon (India) Ltd has a market capitalization of 1,331.00 Cr, categorizing it as a Small Cap company.<BR><BR>In the latest four quarters, Eimco Elecon reported Net Sales of 227.45 Cr and a Net Profit of 38.55 Cr.<BR><BR>The latest annual period for the balance sheet is March 2024, with Shareholder's Funds amounting to 386.17 Cr and Total Assets valued at 450.37 Cr.

When is the next results date for Eimco Elecon(I)?

Eimco Elecon(I) is scheduled to declare its results on 09 October 2025.

Eimco Elecon(I) is scheduled to declare its results on 09 October 2025.

Are Eimco Elecon(I) latest results good or bad?

Eimco Elecon (India) reported disappointing results for Q3 2025, with net sales down 45.6% to Rs 33.24 crore and a 76.4% drop in Profit Before Tax to Rs 2.62 crore, indicating a challenging period for the company.

Eimco Elecon (India) has reported disappointing financial results for the quarter ending September 2025. The company experienced a significant decline in net sales, which fell by 45.6% to Rs 33.24 crore, marking the lowest sales figure in the last five quarters. <BR><BR>Profit Before Tax (PBT) also saw a dramatic drop, decreasing by 76.4% to Rs 2.62 crore, while Profit After Tax (PAT) fell by 56.0% to Rs 5.35 crore, again the lowest in five quarters. The operating profit was reported at Rs 5.23 crore, reflecting a decline of 57.51%, with an operating profit margin of 15.73%. <BR><BR>Additionally, a notable portion of the PBT, about 61.97%, came from non-operating income, indicating a reliance on income from non-business activities. Earnings per Share (EPS) decreased to Rs 9.27, which further highlights the decline in profitability for shareholders.<BR><BR>Overall, the results indicate a challenging period for Eimco Elecon, with significant declines across key financial metrics.

Should I buy, sell or hold Eimco Elecon(I)?

How has been the historical performance of Eimco Elecon(I)?

Eimco Elecon(I) has experienced significant growth from March 2022 to March 2024, with net sales increasing from 84.44 crore to 227.50 crore and profit after tax rising from 8.52 crore to 38.54 crore, reflecting strong operational efficiency and improved cash flow. Total assets and liabilities both grew to 450.37 crore, indicating a stable financial structure.

Answer:<BR>The historical performance of Eimco Elecon(I) shows significant growth in net sales and profitability over the years, particularly from March 2022 to March 2024.<BR><BR>Breakdown:<BR>Eimco Elecon(I) has demonstrated a strong upward trend in net sales, increasing from 84.44 crore in March 2022 to 227.50 crore in March 2024. This growth is accompanied by a rise in total operating income, which reached 227.50 crore in March 2024, up from 84.44 crore in March 2022. The company's operating profit (PBDIT) also saw a substantial increase, climbing from 18.39 crore in March 2022 to 56.47 crore in March 2024, reflecting improved operational efficiency. Profit before tax rose from 9.88 crore in March 2022 to 48.08 crore in March 2024, while profit after tax increased from 8.52 crore to 38.54 crore in the same period. The earnings per share (EPS) surged from 15.04 in March 2022 to 66.81 in March 2024, indicating enhanced shareholder value. On the balance sheet, total assets grew from 365.54 crore in March 2022 to 450.37 crore in March 2024, while total liabilities increased from 365.54 crore to 450.37 crore, maintaining a stable financial structure. The cash flow from operating activities improved significantly, reaching 11.00 crore in March 2024, compared to -9.00 crore in March 2022, showcasing a positive shift in cash generation capabilities. Overall, Eimco Elecon(I) has shown robust financial performance and growth over the past few years.

Is Eimco Elecon(I) technically bullish or bearish?

As of November 4, 2025, the technical trend is bearish with moderate strength, indicated by bearish MACD, Bollinger Bands, and moving averages, despite mild bullishness in OBV, and the stock has underperformed against the Sensex.

As of 4 November 2025, the technical trend has changed from mildly bearish to bearish. The current stance is bearish with moderate strength. Key indicators driving this include a bearish MACD on the weekly chart, bearish Bollinger Bands on both weekly and monthly time frames, and bearish moving averages on the daily chart. The KST is also bearish on the weekly chart. Although the OBV shows mild bullishness on the weekly, it is not enough to counter the overall bearish sentiment. The stock has underperformed significantly against the Sensex over multiple time frames, further supporting the bearish outlook.

Which are the latest news on Eimco Elecon(I)?

Why is Eimco Elecon(I) falling/rising?

As of 04-Dec, Eimco Elecon (India) Ltd's stock price is rising to 1,614.05 after a trend reversal, but it has a year-to-date decline of 21.27% and a one-year drop of 34.07%, indicating long-term underperformance despite short-term gains.

As of 04-Dec, Eimco Elecon (India) Ltd's stock price is rising, currently at 1,614.05, reflecting an increase of 29.0 (1.83%). This rise comes after a trend reversal, as the stock has gained following four consecutive days of decline. Additionally, the stock outperformed its sector by 2.19% today, indicating a positive shift in performance relative to its peers.<BR><BR>Despite this upward movement, it is important to note that the stock has been underperforming in the longer term, with a year-to-date decline of 21.27% and a one-year drop of 34.07%. The stock is also trading below its moving averages across various time frames, which suggests ongoing challenges. Furthermore, investor participation has decreased, with delivery volume falling by 27.1% compared to the five-day average.<BR><BR>Overall, while the stock is experiencing a short-term rise, the broader context shows significant volatility and underperformance over longer periods.