Elecon Engineering Co. Ltd.
NSE: ELECONElecon Engineering Co. Ltd.: A 30-second snapshot
Elecon Engineering (₹499) is a mid-cap industrial gearbox and material handling equipment manufacturer classified in the Infrastructure sector. The stock is down 22.16% over 12 months from a 52-week high drawdown of 30.11%, though it has recovered 6.4% over the past 3 months and now sits marginally above its 200-DMA of ₹496. Q4 FY26 results showed a 6.51% YoY revenue decline attributed to order delays and customer postponements, and the 5-year earnings growth rate stands at -95.9%.
P/E
31.9
Forward P/E
19.8
ROE
+15.8%
Debt / Equity
11.82
Profit Margin
+14.4%
Div. Yield
+0.4%
5Y ROE > 15%
3/5
5Y FCF > 0
4/5
Quality
46/100
News
8 headlines · 3 positive · 2 negative
Elecon Eng Consolidated March 2026 Net Sales at Rs 745.61 crore, down 6.51% Y-o-Y - Moneycontrol.com
Moneycontrol.com
Elecon Engineering Q4FY26 Revenue Drops Due to Delayed Orders and Customer Postponements - scanx.trade
scanx.trade
Elecon Engineering Company - 10 smallcap stocks soaring up to 116% in FY27. Do you own them? - The Economic Times
The Economic Times
Elecon Engineering Company - Vijay Kedia Portfolio Check: 10 stocks surge up to 44% — plus 5 fresh picks - The Economic Times
The Economic Times
Elecon Engineering Company - Positive Breakout: These 8 stocks cross above their 200 DMAs - The Economic Times
The Economic Times
Recent context
- ·Q4 FY26 consolidated net sales were ₹745.61 crore, down 6.51% YoY, with Elecon Engineering citing delayed orders and customer postponements as the primary drivers of the shortfall (Moneycontrol, April 2026).
- ·The stock was mentioned in an Economic Times screen of 10 smallcap names that gained up to 116% in FY27 (May 2026) and appeared in a Vijay Kedia portfolio update (May 2026); separately, a technical screen flagged the stock as having crossed above its 200-DMA in late April 2026.
- ·News sentiment across 8 articles is neutral overall (3 positive, 3 neutral, 2 negative), with negative items concentrated on the Q4 results miss and positive items largely comprising index-inclusion or portfolio-mention stories rather than fundamental improvement signals.
Strengths
- +FCF positive in 4 of the available measurement years, indicating the business has historically converted earnings to cash despite the recent profit shock.
- +Trailing PE of 31.9x is the lowest among the 6 Infrastructure sector peers tracked (vs. BEL at 52x, LT at 33x, CGPOWER at 109x), suggesting a relatively lower valuation multiple within the peer group on this metric.
- +3-month price recovery of 6.4% has placed the stock above both the 50-DMA (₹439) and 200-DMA (₹496); RSI of 53.4 sits in neutral territory, neither overbought nor oversold.
- +Forward PE of 19.8x implies a meaningful step-down from the trailing 31.9x, reflecting analyst expectations (across 2 analysts) of earnings normalisation from the Q4 FY26 trough.
Weaknesses
- −5-year earnings growth of -95.9% represents a near-complete erosion of profit over the measurement horizon; Q4 FY26 management commentary cited delayed orders and customer postponements with no confirmed recovery timeline.
- −Debt-to-equity of 11.82 is materially elevated relative to the industrial machinery segment, and the debt trend is characterised as rising — compounding the risk during a period of top-line contraction.
- −5-year revenue growth of -6.5% shows the top line has contracted on a compound basis even before the Q4 FY26 shortfall; ROE of 15.85% is above 15% in only 3 of the tracked years.
- −Quality score of 31 ranks 4th of 6 in the Infrastructure peer group; the stock has declined 22.16% over 12 months against a 52-week high that is 30.11% above the current price.
Open questions
- ?What is the order book position and pipeline at Elecon entering FY27, and does management guidance indicate when delayed customer orders are expected to convert to revenue?
- ?How has the debt-to-equity of 11.82 been managed historically — does it reflect lease/equipment financing structures typical in industrial businesses, or does it represent balance-sheet leverage that could constrain capital allocation?
- ?Does the 5-year earnings contraction of -95.9% reflect a one-time impairment or write-off event, or does it indicate a structural deterioration in the core gearbox and material handling business?
- ?How does Elecon's quality score of 31 (4th of 6 peers) and profitMargin of 14.4% compare to its own historical range, and at what point in the cycle have margins previously recovered after order-delay-driven downturns?
Peer comparison: Infrastructure
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ELECON | Elecon Engineering Co. Ltd.You're viewing | 31.9 | +15.8% | 31 |
| Industry avg | across 5 peers | 69.5 | +17.5% | 40 |
| BEL | Bharat Electronics Ltd. | 52.0 | — | 57 |
| ABB | ABB India Ltd. | 87.1 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 108.6 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.4 | +15.5% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.5 | — | 24 |
Technical state
Current price
₹499.00
SMA 50
₹439.27
SMA 200
₹495.83
RSI (14)
53.4 (neutral)
From 52w high
-30.1%
1Y return
-22.2%
3M return
+6.4%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-year earnings growth of -95.9% reflects a near-total profit collapse; Q4 FY26 net sales fell 6.51% YoY and management cited delayed orders and customer postponements as drivers.
- highDebt-to-equity of 11.82 is materially elevated for an industrial machinery company, and the debt trend is classified as rising over the measurement period.
- medium5-year revenue growth of -6.5% shows top-line contraction on a compound basis, predating the Q4 FY26 earnings shock; ROE of 15.85% is above 15% in only 3 of the available years.
- mediumDespite recovering 6.4% over 3 months and crossing both the 50-DMA (₹439) and 200-DMA (₹496), the stock remains 30.11% below its 52-week high, with the 52-week 1-year return at -22.16%.
- lowAnalyst coverage is very sparse: only 2 analysts tracked with no consensus rating available, limiting the reliability of the forward PE estimate of 19.8x.
- lowNews flow is thin (8 total articles) with 2 negative headlines specifically citing Q4 revenue decline from delayed/postponed orders.
Cross-section contradictions
- Q4 FY26 consolidated net sales fell 6.51% YoY and news coverage specifically attributes the shortfall to delayed orders and customer postponements, yet the stock has recovered 6.4% over the past 3 months and now trades marginally above its 200-DMA (₹496 vs. current ₹499) — near-term price action diverges from the most recent earnings trajectory.
- The forward PE of 19.8x implies meaningful earnings recovery from the current trailing PE of 31.9x, yet 5-year revenue growth is -6.5% and the debt trend is rising — the gap between the implied recovery and the historical growth record is notable.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days