BSE:523708

Stock Analysis Report

Eimco Elecon (India)

Executive Summary

Eimco Elecon (India) Limited manufactures and sells equipment for mining and construction sector in India.

Rewards

PE ratio (8.3x) is below the Indian market (12.7x)

Revenue is forecast to grow 34.32% per year

Pays a reliable dividend of 2.36%

Risk Analysis

Large one-off items impacting financial results

Does not have a meaningful market cap (₹2B)



Snowflake Analysis

Excellent balance sheet average dividend payer.

Share Price & News

How has Eimco Elecon (India)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 523708 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

523708

-1.4%

IN Machinery

-1.1%

IN Market


1 Year Return

-27.5%

523708

-15.9%

IN Machinery

2.9%

IN Market

Return vs Industry: 523708 underperformed the Indian Machinery industry which returned -15.9% over the past year.

Return vs Market: 523708 underperformed the Indian Market which returned 2.9% over the past year.


Shareholder returns

523708IndustryMarket
7 Day0.2%-1.4%-1.1%
30 Day-0.6%-3.8%-0.8%
90 Day-0.7%2.6%6.0%
1 Year-26.2%-27.5%-14.6%-15.9%4.9%2.9%
3 Year-16.6%-19.9%4.5%0.6%32.7%25.7%
5 Year-4.1%-9.6%23.1%16.3%41.2%28.5%

Price Volatility Vs. Market

How volatile is Eimco Elecon (India)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Eimco Elecon (India) undervalued compared to its fair value and its price relative to the market?

8.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 523708 (₹296.35) is trading above our estimate of fair value (₹65.52)

Significantly Below Fair Value: 523708 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 523708 is good value based on its PE Ratio (8.3x) compared to the Machinery industry average (13.3x).

PE vs Market: 523708 is good value based on its PE Ratio (8.3x) compared to the Indian market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 523708's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 523708 is good value based on its PB Ratio (0.5x) compared to the IN Machinery industry average (1.1x).


Next Steps

Future Growth

How is Eimco Elecon (India) forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

34.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 523708's forecast earnings growth is above the savings rate (6.5%).

Earnings vs Market: Insufficient data to determine if 523708's earnings are forecast to grow faster than the Indian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 523708's revenue (34.3% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: 523708's revenue (34.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 523708's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Eimco Elecon (India) performed over the past 5 years?

2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 523708 has a large one-off gain of ₹85.8M impacting its September 30 2019 financial results.

Growing Profit Margin: 523708's current net profit margins (15.3%) are higher than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: 523708's earnings have grown by 2.5% per year over the past 5 years.

Accelerating Growth: 523708's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 523708 had negative earnings growth (-8.6%) over the past year, making it difficult to compare to the Machinery industry average (2.8%).


Return on Equity

High ROE: 523708's Return on Equity (6.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Eimco Elecon (India)'s financial position?


Financial Position Analysis

Short Term Liabilities: 523708's short term assets (₹1.1B) exceed its short term liabilities (₹222.0M).

Long Term Liabilities: 523708's short term assets (₹1.1B) exceed its long term liabilities (₹119.6M).


Debt to Equity History and Analysis

Debt Level: 523708's debt to equity ratio (0.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 523708's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 523708's debt is well covered by operating cash flow (730.1%).

Interest Coverage: 523708 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 523708 has a high level of physical assets or inventory.

Debt Coverage by Assets: 523708's debt is covered by short term assets (assets are 76.8x debt).


Next Steps

Dividend

What is Eimco Elecon (India)'s current dividend yield, its reliability and sustainability?

2.36%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%0.6%markettop25%2.5%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 523708's dividend (2.36%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 523708's dividend (2.36%) is low compared to the top 25% of dividend payers in the Indian market (2.55%).


Stability and Growth of Payments

Stable Dividend: 523708's dividends per share have been stable in the past 10 years.

Growing Dividend: 523708's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.6%), 523708's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Eimco Elecon (India)'s salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average board tenure


CEO

Eimco Elecon (India) has no CEO, or we have no data on them.


Board Age and Tenure

4.8yrs

Average Tenure

63yo

Average Age

Experienced Board: 523708's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Prayasvin Patel (61yo)

    Executive Director

    • Tenure: 3.1yrs
    • Compensation: ₹8.70m
  • Nilesh Shelat (62yo)

    Chief Financial Officer

    • Tenure: 3.3yrs
    • Compensation: ₹3.15m
  • Ravindra Luthra (67yo)

    Head of Research

    • Tenure: 0yrs
    • Compensation: ₹2.50m
  • Dinesh Patel (66yo)

    Group Technical Director

    • Tenure: 0yrs
  • Mukulnarayan Dwivedi (52yo)

    VP of Marketing & Executive Director

    • Tenure: 0.3yrs
  • Rikenkumar Dalwadi

    Company Secretary & Compliance Officer

    • Tenure: 1yrs
    • Compensation: ₹839.69k

Board Members

  • Prayasvin Patel (61yo)

    Executive Director

    • Tenure: 3.1yrs
    • Compensation: ₹8.70m
  • Pradip Patel (72yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: ₹497.50k
  • Reena Bhagwati (53yo)

    Additional Independent & Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: ₹325.00k
  • Nirmal Bhogilal (70yo)

    Independent Non Executive Director

    • Tenure: 8.3yrs
    • Compensation: ₹422.50k
  • Prashantbhai Amin (63yo)

    Non-Independent & Non Executive Director

    • Tenure: 12.2yrs
    • Compensation: ₹375.00k
  • Nalin Shah (72yo)

    Non-Executive Independent Director

    • Tenure: 7.6yrs
    • Compensation: ₹477.50k
  • Manjuladevi Shroff

    Independent Non Executive Director

    • Tenure: 4.8yrs
    • Compensation: ₹455.00k
  • Mukulnarayan Dwivedi (52yo)

    VP of Marketing & Executive Director

    • Tenure: 0.3yrs

Company Information

Eimco Elecon (India) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eimco Elecon (India) Limited
  • Ticker: 523708
  • Exchange: BSE
  • Founded: 1974
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: ₹1.702b
  • Shares outstanding: 5.77m
  • Website: https://eimcoelecon.in

Number of Employees


Location

  • Eimco Elecon (India) Limited
  • Anand-Sojitra Road
  • Vallabh Vidyanagar
  • Gujarat
  • 388120
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
523708BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 1996
EIMCOELECONSEI (National Stock Exchange of India)YesEquity SharesININRApr 1996

Biography

Eimco Elecon (India) Limited manufactures and sells equipment for mining and construction sector in India. It offers air motors, side dump loaders, load haul dumpers, coal haulers, universal drill machines ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 12:49
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.