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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Elecon Engineering Company Ltd

About the Company - Elecon Engineering Company Ltd

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
Mr. Jai S DiwanjiDirector
Dr. Sonal V AmbaniDirector
Mr. Ashutosh Arvind PednekarDirector
Mr. Aayush A ShahDirector

Basic Stock Data of Elecon Engineering Company Ltd

Last Updated: May 23, 2024, 3:24 pm

Market Cap 12,836 Cr.
Current Price 1,142
High / Low1,245/518
Stock P/E36.1
Book Value 143
Dividend Yield0.18 %
ROCE31.6 %
ROE24.7 %
Face Value 2.00
PEG Ratio1.35

Elecon Engineering Company Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales296350294314271332328389389425414485474
Expenses240277235247219263263296300332314366353
Operating Profit56745967526965938993100119120
OPM %19%21%20%21%19%21%20%24%23%22%24%24%25%
Other Income212224454991411
Interest14141412574325231
Depreciation13131212121211121214121313
Profit before tax3147354437545483798494117117
Tax %21%33%22%20%15%14%21%22%20%19%23%24%23%
Net Profit25322735324642656368738990
EPS in Rs2.202.822.433.152.814.133.775.805.596.066.507.898.06

Last Updated: May 7, 2024, 11:33 pm

Elecon Engineering Company Ltd Quarterly Chart

Elecon Engineering Company Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,6131,5271,2931,3291,2801,2021,1801,2251,0881,0441,2121,5301,713
Expenses1,4001,3101,1361,1531,1051,0271,0551,0849478589601,1891,312
Operating Profit213216157176176175126140142186252341400
OPM %13%14%12%13%14%15%11%11%13%18%21%22%23%
Other Income11-19141729128699852237
Interest72908087839075747860381412
Depreciation49576272625353485352494951
Profit before tax10350293460446882081171300375
Tax %41%41%51%49%37%75%-33%21%-360%29%18%21%
Net Profit6129141737117709058140237292
EPS in Rs6.581.931.261.503.430.960.676.257.995.1412.5221.1726.04
Dividend Payout %28%52%79%73%32%52%30%3%0%8%11%9%

Elecon Engineering Company Ltd Profit & Loss Yearly Chart

Elecon Engineering Company Ltd Growth

Compounded Sales Growth
10 Years:4%
5 Years:10%
3 Years:23%
TTM:27%
Compounded Profit Growth
10 Years:39%
5 Years:55%
3 Years:83%
TTM:49%
Stock Price CAGR
10 Years:33%
5 Years:84%
3 Years:117%
1 Year:97%
Return on Equity
10 Years:11%
5 Years:17%
3 Years:21%
Last Year:25%

Last Updated: May 23, 2024, 3:24 pm

Elecon Engineering Company Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital19192222222222222222222222
Reserves4405165105146826876867468328971,0281,2571,392
Borrowings6656976335526295835905484203351515245
Other Liabilities796892892877870794857849855733513399421
Total Liabilities1,9202,1232,0581,9642,2032,0872,1562,1652,1291,9881,7151,7301,881
Fixed Assets531625595523898861834799799758739754755
CWIP421074821500100
Investments141314154949515453535477107
Other Assets1,3331,4751,4411,4221,2481,1751,2701,3071,2771,1769218991,018
Total Assets1,9202,1232,0581,9642,2032,0872,1562,1652,1291,9881,7151,7301,881

Elecon Engineering Company Ltd Reserves and Borrowings Chart

Elecon Engineering Company Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 216176160177121887087222248223310
Cash from Investing Activity -138-98-3007-7-5140-25-1915-167
Cash from Financing Activity -86-65-140-168-5-134-64-118-176-210-250-145
Net Cash Flow-813-991447-4492119-12-2

Elecon Engineering Company Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days17720024123620119120817720517712582
Inventory Days140178209187218203189206222188167142
Days Payable198244289278331326295259376319173109
Cash Conversion Cycle12013416114588691021245146119116
Working Capital Days1041531701591028411213412810510176
ROCE %16%14%9%10%10%10%6%10%7%11%17%25%

Elecon Engineering Company Ltd Financial Efficiency Indicators Chart

Elecon Engineering Company Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters59.20%59.20%59.21%59.21%59.26%59.26%59.29%59.29%59.29%59.29%59.29%59.29%
FIIs0.31%0.79%1.58%1.71%1.71%2.14%2.01%1.95%2.11%2.81%4.88%5.96%
DIIs2.28%2.28%2.23%1.84%1.85%1.84%1.50%1.79%1.76%2.02%2.92%2.64%
Government0.25%0.25%0.25%0.25%0.25%0.25%0.05%0.00%0.00%0.00%0.00%0.00%
Public37.97%37.49%36.73%36.99%36.93%36.51%37.15%36.96%36.84%35.88%32.90%32.11%
No. of Shareholders43,46850,85958,37360,40662,29258,68164,02263,34263,19265,22081,53987,816

Elecon Engineering Company Ltd Shareholding Pattern Chart

No. of Elecon Engineering Company Ltd Shareholders

Elecon Engineering Company Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Franklin India Smaller Companies Fund6334450.5553.46
LIC MF Flexi Cap Fund1825541.8315.41
Samco Active Momentum Fund811241.596.85
Bank of India Flexi Cap Fund640001.275.4
Motilal Oswal Nifty Microcap 250 Index Fund433950.793.66
Navi Equity Hybrid Fund160001.651.35
LIC MF Childrens Gift Fund34812.120.29
Groww Nifty Total Market Index Fund990.030.01

Elecon Engineering Company Ltd ROCE Trend

Elecon Engineering Company Ltd EPS Trend

Elecon Engineering Company Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)21.1712.525.147.996.25
Diluted EPS (Rs.)21.1712.525.147.996.25
Cash EPS (Rs.)25.2516.729.6112.6010.17
Book Value[Excl.RevalReserv]/Share (Rs.)114.0093.6081.9376.1368.45
Book Value[Incl.RevalReserv]/Share (Rs.)114.0093.6081.9376.1368.45
Revenue From Operations / Share (Rs.)136.34107.2793.1197.01109.01
PBDIT / Share (Rs.)31.9922.7317.0513.2118.29
PBIT / Share (Rs.)27.6218.4012.418.4614.03
PBT / Share (Rs.)26.4315.077.081.607.52
Net Profit / Share (Rs.)20.8812.394.977.855.90
NP After MI And SOA / Share (Rs.)21.1712.525.147.996.25
PBDIT Margin (%)23.4621.1818.3113.6116.78
PBIT Margin (%)20.2517.1513.328.7212.86
PBT Margin (%)19.3814.047.601.646.90
Net Profit Margin (%)15.3111.555.338.095.41
NP After MI And SOA Margin (%)15.5211.675.518.245.73
Return on Networth / Equity (%)18.5613.376.2610.509.12
Return on Capital Employeed (%)22.4617.5012.068.4813.69
Return On Assets (%)13.718.172.894.203.23
Long Term Debt / Equity (X)0.000.010.120.170.31
Total Debt / Equity (X)0.000.090.260.470.68
Asset Turnover Ratio (%)0.760.510.410.410.46
Current Ratio (X)2.521.641.351.221.24
Quick Ratio (X)1.731.161.050.910.92
Inventory Turnover Ratio (X)2.472.081.321.361.71
Dividend Payout Ratio (NP) (%)6.613.190.002.503.20
Dividend Payout Ratio (CP) (%)5.482.370.001.561.90
Earning Retention Ratio (%)93.3996.810.0097.5096.80
Cash Earning Retention Ratio (%)94.5297.630.0098.4498.10
Interest Coverage Ratio (X)26.966.833.201.922.81
Interest Coverage Ratio (Post Tax) (X)18.604.721.932.141.91
Enterprise Value (Cr.)4074.551601.88816.88507.831159.36
EV / Net Operating Revenue (X)2.661.330.780.460.94
EV / EBITDA (X)11.356.284.273.435.65
MarketCap / Net Operating Revenue (X)2.801.340.680.190.58
Retention Ratios (%)93.3896.800.0097.4996.79
Price / BV (X)3.351.540.770.250.92
Price / Net Operating Revenue (X)2.801.340.680.190.58
EarningsYield0.050.080.080.410.09

Elecon Engineering Company Ltd Profitability Ratios (%)

Elecon Engineering Company Ltd Liquidity Ratios

Elecon Engineering Company Ltd Liquidity Ratios (%)

Elecon Engineering Company Ltd Interest Coverage Ratios (%)

Elecon Engineering Company Ltd Valuation Ratios

Fair Value

Fair Value: ₹1,277.38

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.

Undervalued: 11.85% compared to the current price ₹1142

Intrinsic Value: ₹1,617.86

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 41.67% compared to the current price ₹1142

Last 5 Year EPS CAGR: 26.65%

*Investments are subject to market risks

Strength and Weakness of Elecon Engineering Company Ltd Stock

StrengthWeakness
  1. The company has higher reserves (783.62 cr) compared to borrowings (453.85 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (1.00 cr) and profit (104.69 cr) over the years.
  1. The stock has a low average ROCE of 12.08%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 119.00, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 106.25, which may not be favorable.

FAQ

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

The latest fair value of Elecon Engineering Company Ltd is ₹1277.38.

What is the Market Cap of Elecon Engineering Company Ltd?

The Market Cap of Elecon Engineering Company Ltd is 12,836 Cr..

What is the current Stock Price of Elecon Engineering Company Ltd as on 30 May 2024?

The current stock price of Elecon Engineering Company Ltd as on 30 May 2024 is ₹1,142.

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 1,245/518.

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

The Stock P/E of Elecon Engineering Company Ltd is 36.1.

What is the Book Value of Elecon Engineering Company Ltd?

The Book Value of Elecon Engineering Company Ltd is 143.

What is the Dividend Yield of Elecon Engineering Company Ltd?

The Dividend Yield of Elecon Engineering Company Ltd is 0.18 %.

What is the ROCE of Elecon Engineering Company Ltd?

The ROCE of Elecon Engineering Company Ltd is 31.6 %.

What is the ROE of Elecon Engineering Company Ltd?

The ROE of Elecon Engineering Company Ltd is 24.7 %.

What is the Face Value of Elecon Engineering Company Ltd?

The Face Value of Elecon Engineering Company Ltd is 2.00.

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