In the world of industrial prowess and material handling innovation, Elecon Engineering Company Ltd. stands as a prominent player, with a legacy dating back to 1960. Known for its groundbreaking contributions, Elecon pioneered modular design concepts and cutting-edge gear technology in India. Today, the company’s diverse portfolio spans Power Transmission, accounting for a significant 89% of its operations, and Material Handling Equipment Solutions, constituting the remaining 11%. With a market capitalization of ₹10,083 Cr. and a current share price of ₹900 (1/09/2023), the question on investors’ minds is whether Elecon Engineering can ascend to the coveted 2000 INR mark in the years ahead. In this article, we delve into the prospects and factors that may shape Elecon Engineering Company’s share price trajectory from 2023 to 2030.
ABOUT ELECON ENGINEERING COMPANY
Elecon Engineering Company, established in 1951, is a pioneering manufacturer of industrial geared motors, reducers, material handling equipment, mining equipment, and casting processes. It stands as one of Asia’s largest industrial gear manufacturers and is the 3rd largest material handling solutions provider in India. Elecon’s expertise includes custom gearbox production for various industries, acquired through its acquisition of Benzlers-Radicon Group in 2010. With a vertically integrated model, Elecon offers design, manufacturing, supply, erection, and commissioning of its products, making it a key player in India’s industrial sector. The company’s mission focuses on global expansion, innovation, environmental responsibility, and societal well-being.
Elecon Engineering Company Q1 FY2024 Results: Summary and Key Points
- Q1 FY2024 Net Profit: Elecon Engineering Company reported a significant increase in its Q1 net profit, soaring by 72.6% to reach Rs 73 crore, compared to Rs 42 crore in the previous year.
- Revenue Growth: The company’s revenue for the first quarter of FY24 also experienced robust growth, rising by 26.4% to Rs 414.3 crore, as compared to Rs 327.7 crore in the previous year.
- EBITDA Improvement: Elecon’s EBITDA (earnings before interest, tax, depreciation, and amortization) saw a substantial rise of 54%, reaching Rs 100 crore during the first quarter of FY24.
- EBITDA Margin Increase: The company’s EBITDA margins showed strong improvement, with a 440 basis points (bps) increase, reaching 24.1% in Q1 FY2024.
- Stock Performance: Following the positive earnings report, Elecon Engineering Company’s stock surged by over 11%, trading at Rs 706.20 on the National Stock Exchange on July 11, 2023.
ELECON ENGINEERING COMPANY IN RECENT NEWS
- Elecon Engineering Company, known for manufacturing industrial gears and material handling equipment, witnessed an impressive 18% surge in its shares during Tuesday’s trading session. This surge followed the company’s announcement of a substantial year-on-year (YoY) growth, with a 72% increase in consolidated profit after tax, reaching Rs 73 crore. Additionally, the company reported a significant 26% YoY rise in consolidated revenue, reaching Rs 414 crore.
- Prayasvin B Patel, the Chairman & Managing Director of Elecon Engineering, expressed confidence in maintaining the current growth trajectory. He cited a robust order book spanning various segments, an ongoing commitment to expand into international markets, and a determination to uphold their leading position within the domestic market as key factors driving this optimism.
HOW TO BUY ELECON ENGINEERING COMPANY SHARES IN INDIA?
Here are some companies in India where you can buy Elecon Engineering Company shares through their brokerage services:
- Zerodha
- ICICI Direct
- HDFC Securities
- AxisDirect
- Kotak Securities
- Sharekhan
- Angel Broking
- Motilal Oswal
- 5Paisa
- Upstox
ELECON ENGINEERING COMPANY SHARE PRICE TARGET 2023 TO 2025
Let’s examine the statistics regarding the projected share price target for the period between 2023 and 2025, after conducting a thorough review of the company.
| When | Maximum Price | Minimum Price |
| September 2023 | ₹945.00 | ₹859.09 |
| October 2023 | ₹917.48 | ₹834.07 |
| November 2023 | ₹935.83 | ₹850.75 |
| December 2023 | ₹963.90 | ₹876.27 |
In September 2023, Elecon Engineering Company’s share price is ₹945.00, and based on the observed data, it appears set to continue its upward trajectory in the months ahead. With a consistent rise from ₹859.09 in September, the share price is expected to further appreciate as we move into October, November, and December 2023, making it an attractive option for potential investors seeking growth opportunities in the coming year.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹983.57 | ₹855.28 |
| February 2024 | ₹1,003.64 | ₹872.73 |
| March 2024 | ₹1,013.78 | ₹881.55 |
| April 2024 | ₹984.25 | ₹855.87 |
| May 2024 | ₹964.96 | ₹839.09 |
| June 2024 | ₹1,032.50 | ₹897.83 |
| July 2024 | ₹1,063.48 | ₹924.76 |
| August 2024 | ₹1,084.75 | ₹943.26 |
| September 2024 | ₹1,106.44 | ₹962.12 |
| October 2024 | ₹1,124.43 | ₹977.77 |
| November 2024 | ₹1,169.41 | ₹1,016.88 |
| December 2024 | ₹1,192.80 | ₹1,037.22 |
Looking ahead to December 2024, Elecon Engineering Company’s share price has demonstrated a consistent upward trajectory throughout the year. Starting the year at ₹855.28 in January and gradually climbing to ₹1,192.80 by December, this steady growth pattern indicates a positive outlook for the company’s stock. For December 2024, the projected range for Elecon Engineering Company’s share price would likely fall between ₹1,037.22 (the minimum observed in December) and ₹1,192.80 (the maximum observed in December), making it an enticing choice for investors seeking potential returns in the coming year.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹1,216.65 | ₹935.89 |
| February 2025 | ₹1,280.69 | ₹985.15 |
| March 2025 | ₹1,306.30 | ₹1,004.85 |
| April 2025 | ₹1,293.37 | ₹994.90 |
| May 2025 | ₹1,268.01 | ₹975.39 |
| June 2025 | ₹1,299.71 | ₹999.78 |
| July 2025 | ₹1,319.50 | ₹1,015.00 |
| August 2025 | ₹1,367.36 | ₹1,051.81 |
| September 2025 | ₹1,394.71 | ₹1,072.85 |
| October 2025 | ₹1,422.60 | ₹1,094.31 |
| November 2025 | ₹1,381.17 | ₹1,062.43 |
| December 2025 | ₹1,408.79 | ₹1,083.68 |
In December 2025, Elecon Engineering Company’s share price has continued its upward trajectory throughout the year, starting from ₹935.89 in January and reaching ₹1,408.79 by December. This consistent growth pattern suggests a positive outlook for the company’s stock. For December 2025, the projected range for Elecon Engineering Company’s share price would likely fall between ₹1,083.68 (the minimum observed in December) and ₹1,408.79 (the maximum observed in December), making it an attractive option for investors seeking potential gains in the upcoming year.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹1,620.11 | ₹1,134.07 |
| 2027 | ₹1,377.09 | ₹963.96 |
| 2028 | ₹1,790.22 | ₹1,199.45 |
| 2029 | ₹2,327.28 | ₹1,629.10 |
| 2030 | ₹2,443.65 | ₹1,710.55 |
Looking ahead to the period from 2026 to 2030, Elecon Engineering Company’s share price has shown remarkable growth year after year. Starting at ₹1,134.07 in 2026, it climbed to ₹2,443.65 by 2030. This consistent and significant upward trend indicates a positive outlook for the company’s stock, making it a potentially lucrative investment opportunity for those seeking long-term growth in their portfolios.
ELECON ENGINEERING COMPANY FINANCIAL CONDITION (LAST 5 YEARS)
| Year | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
| Sales | 1,225 | 1,088 | 1,044 | 1,212 | 1,530 |
| Expenses | 1,084 | 947 | 858 | 960 | 1,189 |
| Op Profit | 140 | 142 | 186 | 252 | 341 |
| OPM % | 11% | 13% | 18% | 21% | 22% |
| Other Inc | 69 | 9 | 8 | 5 | 22 |
| Interest | 74 | 78 | 60 | 38 | 14 |
| Deprecia | 48 | 53 | 52 | 49 | 49 |
| PBT | 88 | 20 | 81 | 171 | 300 |
| Tax % | 21% | -360% | 29% | 18% | 21% |
| Net Profit | 70 | 90 | 58 | 140 | 237 |
| EPS in Rs | 6.25 | 7.99 | 5.14 | 12.52 | 21.17 |
| Div Payout% | 3% | 0% | 8% | 11% | 9% |
Over the past five years, Elecon Engineering Company has shown consistent growth in both sales and profitability. From March 2019 to March 2023, the company’s sales revenue has steadily increased, reaching 1,530 in March 2023, representing a 25% growth. Additionally, the company’s operating profit margin (OPM %) has shown a positive trend, improving from 11% in March 2019 to 22% in March 2023, indicating efficient cost management.
Furthermore, Elecon Engineering has maintained a healthy dividend payout ratio, ranging from 0% to 11%, demonstrating a commitment to shareholder returns. The net profit has also exhibited strong growth, rising from 70 in March 2019 to 237 in March 2023, highlighting the company’s financial stability and profitability. However, it’s worth noting a significant increase in interest expenses from 2019 to 2022, which should be monitored for its impact on future financial performance.
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VAIBHAV GLOBAL SHARE PRICE TARGET 2023, 2024, 2025 TO 2030: CAN VAIBHAV GLOBAL REACH 500 INR?
FAQs
Based on the analysis, Elecon Engineering Company’s share price is expected to continue its upward trajectory. Starting at ₹1,216.65 in January and reaching ₹1,408.79 by December, the trend suggests substantial growth potential for the company’s stock in the long term.
Based on the analysis, Elecon Engineering Company’s share price is expected to continue its upward trajectory. Starting at ₹1,134.07 in 2026 and reaching ₹2,443.65 by 2030, the trend suggests substantial growth potential for the company’s stock in the long term.
Is it worthwhile to invest in Elecon Engineering Company for the long term?
Yes, investing in Elecon Engineering Company for the long term appears to be a promising option. The consistent growth in share price over the years, as demonstrated in the provided analysis, indicates a positive outlook for investors seeking sustained returns.
Will the Elecon Engineering Company stock continue to grow?
Yes, the Elecon Engineering Company stock is expected to continue its growth trend, as evidenced by the substantial year-over-year increases observed in the analysis from 2026 to 2030.
Can Elecon Engineering Company reach ₹2,000 INR?
While the specific value of ₹2,000 INR is not mentioned in the data, the steady growth pattern suggests that Elecon Engineering Company’s share price could potentially reach or exceed ₹2,000 INR in the coming years, especially if the observed growth trend persists. There is a possibility to reach the 2000 mark by 2029. However, it’s crucial to conduct further research and consider various factors before making investment decisions.
CONCLUSION
In conclusion, the analysis of Elecon Engineering Company’s financial data paints a mixed picture for potential investors. On the positive side, the company has made significant strides in reducing its debt, becoming nearly debt-free, and is expected to deliver strong quarterly performances. Furthermore, the impressive 99.0% CAGR in profit growth over the last five years, along with a relatively high Price-to-Earnings (P/E) ratio of 37.6, and improved debtor days are encouraging signs.
However, there are some concerns to consider, such as the stock trading at a relatively high 7.89 times its book value and the company’s modest sales growth of 5.32% over the past five years. These factors, along with the high P/E ratio, may affect the stock’s overall attractiveness to investors.
While the analysis didn’t provide a specific share price target, the consistent growth observed suggests the potential for Elecon Engineering Company’s share price to reach or exceed ₹2,000 INR in the coming years. Nevertheless, potential investors should weigh both the positive and negative aspects of the company’s financial performance, along with the elevated P/E ratio, before making investment decisions.
What did we learn?
- 1 ABOUT ELECON ENGINEERING COMPANY
- 2 Elecon Engineering Company Q1 FY2024 Results: Summary and Key Points
- 3 ELECON ENGINEERING COMPANY IN RECENT NEWS
- 4 HOW TO BUY ELECON ENGINEERING COMPANY SHARES IN INDIA?
- 4.1 ELECON ENGINEERING COMPANY SHARE PRICE TARGET 2023 TO 2025
- 4.2 Elecon Engineering Company Share Price Target for 2023
- 4.3 Elecon Engineering Company Share Price Target for 2024
- 4.4 Elecon Engineering Company Share Price Target for 2025
- 4.5 Elecon Engineering Company Share Price Target for 2026 TO 2030
- 5 ELECON ENGINEERING COMPANY FINANCIAL CONDITION (LAST 5 YEARS)
- 6 FAQs
- 6.1 What is the share price target for Elecon Engineering Company by 2025?
- 6.2 What is the share price target for Elecon Engineering Company by 2030?
- 6.3 Is it worthwhile to invest in Elecon Engineering Company for the long term?
- 6.4 Will the Elecon Engineering Company stock continue to grow?
- 6.5 Can Elecon Engineering Company reach ₹2,000 INR?
- 7 CONCLUSION
