Why is Elecon Engineering Company Ltd ?
1
Negative results in Dec 25
- PAT(Q) At Rs 71.99 cr has Fallen at -33.1%
- ROCE(HY) Lowest at 23.67%
- PBDIT(Q) Lowest at Rs 109.18 cr.
2
With ROE of 20, it has a Expensive valuation with a 3.9 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -23.75%, its profits have risen by 11.1% ; the PEG ratio of the company is 1.9
3
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 8.47% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -23.75% returns
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 Elecon Engg.Co for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Elecon Engg.Co
-23.8%
-0.52
45.34%
Sensex
7.88%
0.70
11.23%
Quality key factors
Factor
Value
Sales Growth (5y)
20.22%
EBIT Growth (5y)
40.37%
EBIT to Interest (avg)
23.52
Debt to EBITDA (avg)
0.50
Net Debt to Equity (avg)
-0.25
Sales to Capital Employed (avg)
1.05
Tax Ratio
20.54%
Dividend Payout Ratio
10.81%
Pledged Shares
0
Institutional Holding
12.62%
ROCE (avg)
25.86%
ROE (avg)
17.89%
Valuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
30
Price to Book Value
3.95
EV to EBIT
17.88
EV to EBITDA
14.81
EV to Capital Employed
4.93
EV to Sales
3.43
PEG Ratio
1.94
Dividend Yield
0.51%
ROCE (Latest)
30.26%
ROE (Latest)
20.01%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Movement
2What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 4.69 times
-13What is not working for the Company
PAT(Q)
At Rs 71.99 cr has Fallen at -33.1%
ROCE(HY)
Lowest at 23.67%
PBDIT(Q)
Lowest at Rs 109.18 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 19.79%
PBT LESS OI(Q)
Lowest at Rs 75.12 cr.
EPS(Q)
Lowest at Rs 3.21
Loading Valuation Snapshot...
Here's what is working for Elecon Engg.Co
Debtors Turnover Ratio- Half Yearly
Highest at 4.69 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Elecon Engg.Co
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 75.12 cr has Fallen at -39.71%
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 71.99 cr has Fallen at -33.1%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 109.18 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 19.79%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 75.12 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 3.21
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)






