Eimco Elecon Bags Rs 61 Crore Order: Here’s the Full Scoop!

29 September 2023
3 mins read
by Angel One
Shares of the company have generated an impressive return of 145% in the last year.
Eimco Elecon Bags Rs 61 Crore Order: Here’s the Full Scoop!

Eimco Elecon Limited, a stalwart in manufacturing and marketing equipment for underground and opencast mines, has some exciting news to share regarding its recent orders.

According to the official report, Eimco Elecon has clinched an order from Inderdeep Construction Corporation for the supply of a coal mining machine package. The magnitude of this order is a substantial Rs 60.87 crore (excluding GST), with a deadline set on or before December 31, 2024.

Share Performance:

Today, Eimco Elecon’s shares kicked off trading at Rs 894 per share, marking a 1.5% increase from the previous day’s closing price of Rs 881.30 per share. They surged to an intraday high of Rs 925.35 per share on the BSE, ultimately closing the session at Rs 900 per share, representing an impressive gain of 2.15%.

The market capitalization of the company stands at Rs 519.30 crore. Additionally, the stock has delivered remarkable returns of 49% in the last three months and an astounding 146% over the past year.

Stock Price Chart (Monthly time frame) 

Financial Performance:

In the June quarter of FY24, Eimco Elecon witnessed a significant upswing in revenue from operations, with a year-on-year increase of 31%, surging from Rs 33.48 crore to Rs 43.78 crore. The company reported an operating profit of Rs 2.49 crore, a stark contrast to the loss of Rs 1.42 crore in the corresponding quarter of the previous year, resulting in an operating profit margin of 5.7%.

Furthermore, the company’s net profit soared to Rs 6.22 crore, a remarkable turnaround from the net loss of Rs 1.28 crore in the corresponding quarter of the previous year. In the final quarter of FY23, the company reported a net profit of Rs 9.77 crore.

Eimco Elecon boasts an 8% Return on Equity (ROE) and a 6% Return on Capital Employed (ROCE). The price-to-book value ratio is 1.5 times, and the shares are trading at a price-to-earnings ratio of 18 times in the market.

Business Overview:

Established in 1974, Eimco Elecon (India) Limited specializes in manufacturing and marketing equipment for both underground and opencast mines. The company, headquartered in Vallabh Vidyanagar, Gujarat, holds the distinction of being the pioneer in India to introduce intermediate technology, including Side Dump Loaders, Load Haul Dumpers, and Rocker Shovel Loaders. Additionally, it manufactures a diverse range of underground coal mining machinery and construction equipment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.