Elecon Engineering Q1 FY24: A Stellar Performance That You Can’t Miss

By -

Results Season: Elecon Engineering Q1 FY24

The results season for the first quarter of the financial year 2024 has begun and we are here to bring you the latest updates on the performance of the companies in our exhaustive list of 103. We will also add new ones as we keep finding gems in the market.

The first one to be out today is Elecon Engineering - a leading manufacturer of material handling equipment and industrial gear systems. The stock is 17% up and almost nearing the upper circuit 🚀🚀🚀

Fantastic Results 🔥👍

Elecon Engineering has reported strong results for Q1 FY24, beating market expectations. Here are some of the highlights:

  • The revenues are 26% higher year on year at Rs 414 crore, compared to Rs 329 crore in Q1 FY23.
  • The net profits jumped 73% higher year on year to Rs 73 crore, versus Rs 42 crore in Q1 FY23.
  • The operating profit margin (OPM) and EBITDA margin expanded by 440 basis points year on year to 25.6% and 27.4%, respectively.
  • The company has reduced its debt by Rs 100 crore in Q1 FY24 and aims to become debt-free by FY25.

Growth Drivers and Outlook

Elecon Engineering has benefited from the recovery in the domestic and international markets, especially in the sectors of cement, steel, power, mining, and infrastructure. The company has a strong order book of Rs 2,200 crore as of June 30, 2023, which gives revenue visibility for the next two years.

The company is also focusing on improving its operational efficiency, product innovation, and customer satisfaction. It has launched new products such as pipe conveyors, stacker reclaimers, apron feeders, and bucket wheel excavators in Q1 FY24.

The management is optimistic about the growth prospects of the company and expects to achieve double-digit revenue growth and margin improvement in FY24.

Stock Performance and Valuation

Elecon Engineering has been one of the best-performing stocks in the engineering sector, delivering a return of 120% in the last year. The stock is currently trading at a PE ratio of 18.6, which is lower than its peers such as ABB India (38.9), Siemens India (48.5), and Larsen & Toubro (25.4).

The stock has also attracted the attention of ace investor Vijay Kedia, who holds a 1.8% stake in the company as of June 30, 2023. He had sold a 0.2% stake in Q1 FY24.

We believe that Elecon Engineering is a quality stock with strong fundamentals, growth potential, and reasonable valuation. We recommend buying this stock for long-term gains.

Disclaimer: This blog post is for informational purposes only and does not constitute any investment advice or recommendation. The author and the website are not responsible for any losses or damages arising from the use of the information provided here. Readers are advised to do their own research and analysis before making any investment decisions.

Comments

Post a Comment

Popular posts from this blog

Deccan Gold Mines Up 150% in a Year, Makes Major Lithium Move in Mozambique

By -
Image
The country's only listed gold exploration and mining company Deccan Gold Mines Limited (DGML) acquired majority stake in 5 lithium blocks in Mozambique, Africa  Deccan Gold Mines Limited (DGML), India's sole listed gold exploration and mining company, has recently made a significant move that has caught the attention of investors worldwide. The company has acquired a majority stake in five lithium blocks in Mozambique, Africa, positioning itself within the globally recognized Alto Ligonha pegmatite belt, known for its abundant reserves of lithium-cesium-tantalum (LCT) pegmatites. {jistoc} $title={Table of Contents} A Strategic Acquisition This acquisition is crucial for the mining of lithium, tantalum, and beryllium. The critical mineral concession block has been procured through Deccan Gold FZCO, a wholly-owned subsidiary of DGML. DGFZCO will hold a majority ownership stake of 51% in DGMOZ, with the potential for this ownership to increase to 70% in the near...
Read more

Small Cap Gem: Sakuma Exports Doubles in 2024, Bonus Share Proposal on July 1st?

By -
Image
Sakuma Exports: A Smallcap Stock with Big Returns in 2024 In the world of stock trading, smallcap stocks often go unnoticed. However, one such stock has been making waves in the Indian stock market - Sakuma Exports Ltd. This company, engaged in the buying, processing, marketing, exporting, and importing of agricultural products, has seen its share price double in the calendar year 2024. {jistoc} $title={Table of Contents} A Stellar Performance As of Thursday, June 20, the Sakuma Exports stock price has recorded a nearly 100% year-to-date gain , hitting the day’s high of ₹37.86 apiece on the NSE. This impressive performance is not a sudden phenomenon but the result of a strong run over the past couple of months. The company's shares have been on a steady upward trajectory, reflecting the positive sentiment among investors. The surge in the stock price is a testament to the company's robust business model and its ability to deliver consistent growth. Bonus Issue ...
Read more

Simple Investing: It's Not Rocket Science (But It Takes More Than Luck)

By -
Image
Successful Investing: Simple, But Not Easy Disclaimer:  This blog post is for informational purposes only and should not be taken as financial advice. Always do your own research and consider seeking advice from a certified financial advisor before making any investment decisions. {jistoc} $title={Table of Contents} The Myth of Easy Wealth The bull market of the 1990s created a myth that the stock market was essentially a high-return savings account. This belief was fueled by the ease of access to financial information and the ability to trade stocks online. However, as many investors discovered when the bubble burst, if something looks too good to be true, it usually is. Investing requires more than just opening an online account and watching financial news. It requires a deep understanding of the market, the ability to analyze and interpret financial data, and the discipline to stick to your investment strategy even when the market is volatile. It also requires...
Read more