ScoreWhy is Elecon Engineering Company Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of 14.75% and Operating profit at 14.91% over the last 5 years
2
The company has declared negative results for the last 3 consecutive quarters
- PBT LESS OI(Q) At Rs 71.25 cr has Fallen at -28.91%
- PAT(Q) At Rs 70.35 cr has Fallen at -34.4%
- OPERATING CF(Y) Lowest at Rs 314.22 Cr
3
With ROE of 12.5, it has a Expensive valuation with a 4.1 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -27.47%, its profits have fallen by -44.1%
4
Below par performance in long term as well as near term
- Along with generating -27.47% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow 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 Elecon Engg.Co for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Elecon Engg.Co
-27.47%
-0.61
45.12%
Sensex
-4.53%
-0.33
13.54%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
14.75%
EBIT Growth (5y)
14.91%
EBIT to Interest (avg)
25.77
Debt to EBITDA (avg)
0.37
Net Debt to Equity (avg)
-0.23
Sales to Capital Employed (avg)
1.06
Tax Ratio
30.67%
Dividend Payout Ratio
13.16%
Pledged Shares
0
Institutional Holding
14.22%
ROCE (avg)
27.02%
ROE (avg)
17.48%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
38
Industry P/E
37
Price to Book Value
4.14
EV to EBIT
22.94
EV to EBITDA
17.94
EV to Capital Employed
5.08
EV to Sales
3.76
PEG Ratio
NA
Dividend Yield
0.47%
ROCE (Latest)
23.65%
ROE (Latest)
12.49%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
DPR(Y)
Highest at 13.16%
-30What is not working for the Company
PBT LESS OI(Q)
At Rs 71.25 cr has Fallen at -28.91%
PAT(Q)
At Rs 70.35 cr has Fallen at -34.4%
OPERATING CF(Y)
Lowest at Rs 314.22 Cr
ROCE(HY)
Lowest at 19.42%
DEBT-EQUITY RATIO(HY)
Highest at 0.12 times
OPERATING PROFIT TO INTEREST (Q)
Lowest at 13.45 times
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 212.64 cr
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.28 times
INTEREST(Q)
Highest at Rs 8.11 cr
PBDIT(Q)
Lowest at Rs 109.12 cr.
Loading Valuation Snapshot...
Here's what is working for Elecon Engg.Co
Dividend Payout Ratio (DPR) - Annually
Highest at 13.16%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Elecon Engg.Co
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 71.25 cr has Fallen at -28.91%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 70.35 cr has Fallen at -34.4%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Quarterly
At Rs 8.11 cr has Grown at 29.76%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 13.45 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debt-Equity Ratio - Half Yearly
Highest at 0.12 times and Grown
each half year in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Operating Cash Flow - Annually
Lowest at Rs 314.22 Cr
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (Rs Cr)
Interest - Quarterly
Highest at Rs 8.11 cr
in the last five quarters and Increased by 29.76 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 109.12 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 71.25 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 212.64 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Lowest at 3.28 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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