Elecon Engineering Company Ltd (ELECON) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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LMW

Titagarh Rail

Elecon Engg.Co

Jyoti CNC Auto.

Jupiter Wagons

Tega Inds.

Praj Industries

Aequs

Why is Elecon Engineering Company Ltd ?

With a fall in Net Sales of -6.51%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
PBT LESS OI(Q) At Rs 124.59 cr has Fallen at -28.17%
INTEREST(9M) At Rs 18.76 cr has Grown at 27.53%
ROCE(HY) Lowest at 19.42%

With ROE of 12.5, it has a Very Expensive valuation with a 5.5 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 -9.65%, its profits have fallen by -30.6%

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 5.38% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.65% 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 Elecon Engg.Co for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Elecon Engg.Co

-9.65%

-0.22

43.89%

Sensex

-3.74%

-0.28

13.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.76%

EBIT Growth (5y)

25.70%

EBIT to Interest (avg)

25.97

Debt to EBITDA (avg)

0.37

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

1.06

Tax Ratio

24.93%

Dividend Payout Ratio

10.81%

Pledged Shares

Institutional Holding

12.85%

ROCE (avg)

27.02%

ROE (avg)

17.48%

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

5.48

EV to EBIT

28.88

EV to EBITDA

23.13

EV to Capital Employed

6.83

EV to Sales

5.11

PEG Ratio

Dividend Yield

0.36%

ROCE (Latest)

23.65%

ROE (Latest)

12.49%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

-24What is not working for the Company

PBT LESS OI(Q)

At Rs 124.59 cr has Fallen at -28.17%

INTEREST(9M)

At Rs 18.76 cr has Grown at 27.53%

ROCE(HY)

Lowest at 19.42%

DEBT-EQUITY RATIO(HY)

Highest at 0.12 times

PAT(Q)

Lowest at Rs 21.12 cr.

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 212.64 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.28 times

NET SALES(Q)

At Rs 745.61 cr has Grown at -6.51%

EPS(Q)

Lowest at Rs 0.27

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Here's what is not working for Elecon Engg.Co

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 124.59 cr has Fallen at -28.17%

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 21.12 cr has Fallen at -85.6%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

Lowest at Rs 21.12 cr. and Fallen

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.12 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest - Nine Monthly

At Rs 18.76 cr has Grown at 27.53%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Net Sales - Quarterly

At Rs 745.61 cr has Grown at -6.51%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.27

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 212.64 cr

in the last six half yearly periods

MOJO 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 periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio