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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 505700 | NSE: ELECON

Elecon Engineering Company Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 11:04 pm

Market Cap 12,860 Cr.
Current Price 573
High / Low739/395
Stock P/E36.2
Book Value 78.2
Dividend Yield0.26 %
ROCE31.3 %
ROE24.5 %
Face Value 1.00
PEG Ratio1.14

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Elecon Engineering Company Ltd

Competitors of Elecon Engineering Company Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HLE Glascoat Ltd 2,483 Cr. 364582/35083.1 63.20.30 %13.1 %8.62 % 2.00
Harish Textile Engineers Ltd 30.4 Cr. 91.2102/42.7 27.80.00 %10.8 %2.98 % 10.0
Disa India Ltd 2,593 Cr. 17,83020,900/12,65255.6 1,7801.12 %25.9 %19.2 % 10.0
Cranex Ltd 83.4 Cr. 139190/47.044.4 19.50.00 %10.1 %14.9 % 10.0
Concord Control Systems Ltd 1,035 Cr. 1,7302,062/53868.6 91.10.00 %72.8 %60.3 % 10.0
Industry Average12,995.13 Cr1,920.8459.11259.200.27%20.32%16.23%5.59

All Competitor Stocks of Elecon Engineering Company Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales350294314271332328389389425414485474565
Expenses277235247219263263296300332314366353429
Operating Profit745967526965938993100119120135
OPM %21%20%21%19%21%20%24%23%22%24%24%25%24%
Other Income1222445499141116
Interest1414125743252312
Depreciation13121212121112121412131313
Profit before tax47354437545483798494117117136
Tax %33%22%20%15%14%21%22%20%19%23%24%23%24%
Net Profit322735324642656368738990104
EPS in Rs2.822.433.152.814.133.775.805.596.066.507.898.069.24

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,5271,2931,3291,2801,2021,1801,2251,0881,0441,2121,5301,937
Expenses1,3101,1361,1531,1051,0271,0551,0849478589601,1891,463
Operating Profit216157176176175126140142186252341475
OPM %14%12%13%14%15%11%11%13%18%21%22%24%
Other Income-19141729128699852250
Interest90808783907574786038149
Depreciation576272625353485352494951
Profit before tax50293460446882081171300465
Tax %41%51%49%37%75%-33%21%-360%29%18%21%24%
Net Profit29141737117709058140238356
EPS in Rs1.931.261.503.430.960.676.257.995.1412.5221.1731.69
Dividend Payout %52%79%73%32%52%30%3%0%8%11%9%9%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-51.72%21.43%117.65%-70.27%-36.36%900.00%28.57%-35.56%141.38%70.00%49.58%
Change in YoY Net Profit Growth (%)0.00%73.15%96.22%-187.92%33.91%936.36%-871.43%-64.13%176.93%-71.38%-20.42%

Elecon Engineering Company Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:4%
5 Years:10%
3 Years:23%
TTM:13%
Compounded Profit Growth
10 Years:38%
5 Years:55%
3 Years:83%
TTM:22%
Stock Price CAGR
10 Years:36%
5 Years:103%
3 Years:80%
1 Year:28%
Return on Equity
10 Years:11%
5 Years:17%
3 Years:20%
Last Year:24%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:35 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital19222222222222222222222222
Reserves5165105146826876867468328971,0281,2571,5821,732
Borrowings6976335526295835905484203351515270118
Other Liabilities892892877870794857849855733513399449475
Total Liabilities2,1232,0581,9642,2032,0872,1562,1652,1291,9881,7151,7302,1232,347
Fixed Assets625595523898861834799799758739754769806
CWIP107482150010117
Investments1314154949515453535477286393
Other Assets1,4751,4411,4221,2481,1751,2701,3071,2771,1769218991,0671,132
Total Assets2,1232,0581,9642,2032,0872,1562,1652,1291,9881,7151,7302,1232,347

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +176160177121887087222248223309365
Cash from Investing Activity +-98-3007-7-5140-25-1915-166-279
Cash from Financing Activity +-65-140-168-5-134-64-118-176-210-250-145-58
Net Cash Flow13-991447-4492119-12-227

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-481.00-476.00-376.00-453.00-408.00-464.00-408.00-278.00-149.00101.00289.00405.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days2002412362011912081772051771258284
Inventory Days17820918721820318920624818816714297
Days Payable24428927833132629525942031917310082
Cash Conversion Cycle1341611458869102124334611912599
Working Capital Days153170159102841121341241181017868
ROCE %14%9%10%10%10%6%10%8%11%17%25%31%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters59.21%59.21%59.26%59.26%59.29%59.29%59.29%59.29%59.29%59.29%59.28%59.28%
FIIs1.58%1.71%1.71%2.14%2.01%1.95%2.11%2.81%4.88%5.96%7.58%9.10%
DIIs2.23%1.84%1.85%1.84%1.50%1.79%1.76%2.02%2.92%2.64%2.29%2.55%
Government0.25%0.25%0.25%0.25%0.05%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public36.73%36.99%36.93%36.51%37.15%36.96%36.84%35.88%32.90%32.11%30.84%29.07%
No. of Shareholders58,37360,40662,29258,68164,02263,34263,19265,22081,53987,81693,0511,00,295

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Franklin India Smaller Companies Fund1,187,6901.03131.738,2092024-11-2014368.14%
HDFC Multi Cap Fund600,0000.4866.558,2092024-11-207209.05%
HDFC Capital Builder Value Fund - Regular Plan100,0000.1611.098,2092024-11-201118.18%
Nippon India Nifty Smallcap 250 Index Fund36,4980.314.058,2092024-11-20344.61%
Bandhan Infrastructure Fund30,4580.253.388,2092024-11-20271.03%
SBI Nifty Smallcap 250 Index Fund20,5570.312.288,2092024-11-20150.42%
Motilal Oswal Nifty Smallcap 250 Index Fund18,8510.32.098,2092024-11-20129.64%
HDFC Manufacturing Fund18,6170.022.068,2092024-11-20126.79%
Navi Aggressive Hybrid Fund12,0001.281.338,2092024-11-2046.18%
ICICI Prudential Nifty Smallcap 250 Index Fund8,2090.30.918,2092024-11-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)31.6921.1712.525.147.99
Diluted EPS (Rs.)31.6921.1712.525.147.99
Cash EPS (Rs.)35.6625.2516.729.6112.60
Book Value[Excl.RevalReserv]/Share (Rs.)142.96114.0093.6081.9376.13
Book Value[Incl.RevalReserv]/Share (Rs.)142.96114.0093.6081.9376.13
Revenue From Operations / Share (Rs.)172.68136.34107.2793.1197.01
PBDIT / Share (Rs.)46.2131.9922.7317.0513.21
PBIT / Share (Rs.)41.6827.6218.4012.418.46
PBT / Share (Rs.)40.9126.4315.077.081.60
Net Profit / Share (Rs.)31.1220.8812.394.977.85
NP After MI And SOA / Share (Rs.)31.6921.1712.525.147.99
PBDIT Margin (%)26.7623.4621.1818.3113.61
PBIT Margin (%)24.1320.2517.1513.328.72
PBT Margin (%)23.6819.3814.047.601.64
Net Profit Margin (%)18.0215.3111.555.338.09
NP After MI And SOA Margin (%)18.3515.5211.675.518.24
Return on Networth / Equity (%)22.1618.5613.376.2610.50
Return on Capital Employeed (%)27.1122.4617.5012.068.48
Return On Assets (%)16.7413.718.172.894.20
Long Term Debt / Equity (X)0.000.000.010.120.17
Total Debt / Equity (X)0.000.000.090.260.47
Asset Turnover Ratio (%)1.000.880.510.410.41
Current Ratio (X)3.052.521.641.351.22
Quick Ratio (X)2.471.731.161.050.91
Inventory Turnover Ratio (X)3.302.662.081.321.36
Dividend Payout Ratio (NP) (%)9.466.613.190.002.50
Dividend Payout Ratio (CP) (%)8.285.482.370.001.56
Earning Retention Ratio (%)90.5493.3996.810.0097.50
Cash Earning Retention Ratio (%)91.7294.5297.630.0098.44
Interest Coverage Ratio (X)60.0226.966.833.201.92
Interest Coverage Ratio (Post Tax) (X)41.4118.604.721.932.14
Enterprise Value (Cr.)10394.014074.551601.88816.88507.83
EV / Net Operating Revenue (X)5.362.661.330.780.46
EV / EBITDA (X)20.0511.356.284.273.43
MarketCap / Net Operating Revenue (X)5.502.801.340.680.19
Retention Ratios (%)90.5393.3896.800.0097.49
Price / BV (X)6.643.351.540.770.25
Price / Net Operating Revenue (X)5.502.801.340.680.19
EarningsYield0.030.050.080.080.41

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Elecon Engineering Company Ltd as of November 21, 2024 is: 695.36

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Elecon Engineering Company Ltd is Undervalued by 21.35% compared to the current share price 573.00

Intrinsic Value of Elecon Engineering Company Ltd as of November 21, 2024 is: 915.98

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Elecon Engineering Company Ltd is Undervalued by 59.86% compared to the current share price 573.00

Last 5 Year EPS CAGR: 31.73%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (897.62 cr) compared to borrowings (413.69 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (1.00 cr) and profit (112.33 cr) over the years.
  1. The stock has a low average ROCE of 13.42%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 116.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 103.75, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Elecon Engineering Company Ltd:
    1. Net Profit Margin: 18.02%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 27.11% (Industry Average ROCE: 20.32%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 22.16% (Industry Average ROE: 16.23%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 41.41
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.47
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 36.2 (Industry average Stock P/E: 59.11)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Elecon Engineering Company Ltd. is a Public Limited Listed company incorporated on 11/01/1960 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L29100GJ1960PLC001082 and registration number is 001082. Currently company belongs to the Industry of Engineering - Heavy. Company’s Total Operating Revenue is Rs. 884.42 Cr. and Equity Capital is Rs. 22.44 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - HeavyAnand-Sojitra Road, Vallab Vidyanagar Gujarat 388120investor.relations@elecon.com
http://www.elecon.com
Management
NamePosition Held
Mr. Prayasvin B PatelChairman & Managing Director
Mr. Prashant C AminDirector
Mr. Pradip M PatelDirector
Mr. Pranav C AminDirector
Dr. Sonal V AmbaniDirector
Mr. Ashutosh Arvind PednekarDirector
Mr. Aayush A ShahDirector
Mr. Nirmal P BhogilalDirector

FAQ

What is the latest intrinsic value of Elecon Engineering Company Ltd?

The latest intrinsic value of Elecon Engineering Company Ltd as on 21 November 2024 is ₹695.36, which is 21.35% higher than the current market price of ₹573.00.

What is the Market Cap of Elecon Engineering Company Ltd?

The Market Cap of Elecon Engineering Company Ltd is 12,860 Cr..

What is the current Stock Price of Elecon Engineering Company Ltd as on 21 November 2024?

The current stock price of Elecon Engineering Company Ltd as on 21 November 2024 is ₹573.

What is the High / Low of Elecon Engineering Company Ltd stocks in FY 2024?

In FY 2024, the High / Low of Elecon Engineering Company Ltd stocks is 739/395.

What is the Stock P/E of Elecon Engineering Company Ltd?

The Stock P/E of Elecon Engineering Company Ltd is 36.2.

What is the Book Value of Elecon Engineering Company Ltd?

The Book Value of Elecon Engineering Company Ltd is 78.2.

What is the Dividend Yield of Elecon Engineering Company Ltd?

The Dividend Yield of Elecon Engineering Company Ltd is 0.26 %.

What is the ROCE of Elecon Engineering Company Ltd?

The ROCE of Elecon Engineering Company Ltd is 31.3 %.

What is the ROE of Elecon Engineering Company Ltd?

The ROE of Elecon Engineering Company Ltd is 24.5 %.

What is the Face Value of Elecon Engineering Company Ltd?

The Face Value of Elecon Engineering Company Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Elecon Engineering Company Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE