Eimco Elecon (India) Ltd (EIMCOELECO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Axtel Industries

Indef Manufactur

Gala Precis. Eng

Macpower CNC

Forbes Precision

Eimco Elecon(I)

Kabra Extrusion

Lloyds Engg. PP

Airfloa Rail

Ganesh Green

OBSC Perfection

Why is Eimco Elecon (India) Ltd ?

Poor Management Efficiency with a low ROE of 4.92%

The company has been able to generate a Return on Equity (avg) of 4.92% signifying low profitability per unit of shareholders funds

With a fall in Net Sales of -50.81%, the company declared Very Negative results in Sep 25

PBT LESS OI(Q) At Rs 2.62 cr has Fallen at -76.4% (vs previous 4Q average)
PAT(Q) At Rs 5.35 cr has Fallen at -56.0% (vs previous 4Q average)
NET SALES(Q) Lowest at Rs 33.24 cr

With ROE of 10, it has a Very Expensive valuation with a 2.4 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -34.15%, its profits have fallen by -18.6%

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -24.68% over the previous quarter and currently hold 48.96% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.12% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -34.15% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Eimco Elecon(I) for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Eimco Elecon(I)

-34.18%

-0.54

63.12%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.17%

EBIT Growth (5y)

90.42%

EBIT to Interest (avg)

10.76

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

0.46

Tax Ratio

19.85%

Dividend Payout Ratio

7.14%

Pledged Shares

Institutional Holding

0.83%

ROCE (avg)

5.67%

ROE (avg)

4.92%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.41

EV to EBIT

28.27

EV to EBITDA

22.98

EV to Capital Employed

2.46

EV to Sales

4.03

PEG Ratio

Dividend Yield

0.31%

ROCE (Latest)

8.72%

ROE (Latest)

9.98%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-21What is not working for the Company

PBT LESS OI(Q)

At Rs 2.62 cr has Fallen at -76.4% (vs previous 4Q average

PAT(Q)

At Rs 5.35 cr has Fallen at -56.0% (vs previous 4Q average

NET SALES(Q)

Lowest at Rs 33.24 cr

PBDIT(Q)

Lowest at Rs 5.23 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 15.73%

NON-OPERATING INCOME(Q)

is 61.97 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs 9.27

Loading Valuation Snapshot...

Here's what is not working for Eimco Elecon(I)

Net Sales - Quarterly

At Rs 33.24 cr has Fallen at -45.6% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 61.08 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2.62 cr has Fallen at -76.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 11.13 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 5.35 cr has Fallen at -56.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 12.15 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

Lowest at Rs 33.24 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 5.23 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 15.73%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 2.62 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 61.97 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Earnings per Share (EPS) - Quarterly

Lowest at Rs 9.27

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)