Eimco Elecon (India) Limited

Industrials — Farm & Heavy Construction Machinery · NSE

₹2,292.10−₹34.30 (−1.47%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Eimco Elecon (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Eimco Elecon (India) Limited engages in the manufacture and sale of equipment for the mining and construction sectors in India.

IndustryFarm & Heavy Construction Machinery

SectorIndustrials

Employees138

Annual revenue₹229 Cr

How does it make money?

Turns over ₹229 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 138 employees supports ₹1.66 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin21.0%

Net margin16.9%

Revenue / employee₹1.66 Cr

Who are its competitors?

The closest listed comparisons in its industry are MAHINDRA & MAHINDRA LTD, ASHOK LEYLAND LTD, TATA MOTORS LIMITED, LARSEN & TOUBRO LTD.. These are the companies its valuation and returns are measured against elsewhere in this report.

MAHINDRA & MAHINDRA LTDP/E 17.8x · ROE 19.7%

ASHOK LEYLAND LTDP/E 25.2x · ROE 24.4%

TATA MOTORS LIMITEDP/E 37.1x · ROE 32.8%

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

What is its competitive advantage?Little sign of one

Returns on capital of 10.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE10.6%

ROE9.0%

Peer median ROE24.4%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +34% while net margin moved +48% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+34%

Margin effect+48%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.20 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

68/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

54/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

31.4x

3Y Median

32.7x

40 monthly readings · mean 34.0x · range 16.9x–95.7x

Sector Median

27.6x

median of 4 sector peers

🟡Currently trading close to its 3y median of 32.7x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 27.6x.

vs. its own history

Fair

32.7x median over 40 months · -4%

vs. sector peers

Fair

27.6x median of 4 peers · +14%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

31.4x

P/B

2.71x

EV/EBITDA

27.5x

PEG

1.23

Dividend Yield

0.17%

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 16.6% to 21.0% over 3 years.
Return on capital is rising
ROCE has improved from 7.1% to 10.6%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 582% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 582% over 3 years, from ₹1 Cr to ₹4 Cr.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹38 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 16.6% to 21.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 10.2% CAGR
Latest reported year was 70.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 19%✓ 21.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹38 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 7 neutral · 1 weak

Market Cap

₹1,322 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

31.4x

Fair

Fairly valued against the generic band

P/B Ratio

2.71x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹72.97

Profitable

Profitable on a per-share basis

ROE

9.0%

Moderate

Moderate capital efficiency

ROCE

10.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.47x

Moderate

Moderate leverage

Revenue Growth (YoY)

70.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

46.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.17%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹43 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹2,292.1

P/E (Forward)

24.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

5.3%

Average

Average asset productivity

Operating Margin

15.3%

Good

Healthy core-business profitability

Net Margin

15.8%

Good

Strong bottom-line conversion

Current Ratio

3.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.20

Defensive

Steadier than the market

52W Range Position

83%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2286.7 / 2198.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹171 Cr	₹225 Cr	₹245 Cr	₹229 Cr	+10.2%
EBITDA	₹28 Cr	₹44 Cr	₹61 Cr	₹48 Cr	+19.2%
EBITDA Margin	16.6%	19.4%	25.0%	21.0%	—
PAT (Net Profit)	₹20 Cr	₹40 Cr	₹49 Cr	₹39 Cr	+25.6%
EPS	₹33.85	₹70.06	₹84.78	₹67.11	+25.6%
ROE	5.6%	10.5%	11.3%	8.3%	—
ROCE	7.1%	12.8%	14.9%	10.6%	—
Total Debt	₹1 Cr	₹0 Cr	₹0 Cr	₹4 Cr	+89.7%
Free Cash Flow	₹4 Cr	₹7 Cr	₹27 Cr	-₹38 Cr	—

🟢 Revenue has grown at 10.2% a year over 3 years.

🟢 EBITDA has grown at 19.2% a year over 3 years.

🟢 EBITDA Margin has risen from 16.6% to 21.0% over 3 years (+4.4 pts).

🟢 PAT (Net Profit) has grown at 25.6% a year over 3 years.

🟢 EPS has grown at 25.6% a year over 3 years.

🟢 ROE has risen from 5.6% to 8.3% over 3 years (+2.7 pts).

🟢 ROCE has risen from 7.1% to 10.6% over 3 years (+3.5 pts).

🔴 Total Debt has grown at 89.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹38 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹524 Cr

Total Liabilities

₹57 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹22 Cr

Capex

-₹61 Cr

Shareholding (proxy)

Institutional Holding

1.8%

Insider Holding

54.4%

Corporate Actions

Dividend Rate

₹4

Ex-Dividend Date

12 Jun 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹2,106

-8.1% vs CMP

Target Range

₹2,106 – ₹2,106

Peer Comparison

Company	P/E	ROE
MAHINDRA & MAHINDRA LTD	17.8x	19.7%
ASHOK LEYLAND LTD	25.2x	24.4%
TATA MOTORS LIMITED	37.1x	32.8%
LARSEN & TOUBRO LTD.	30.1x	15.2%

Recent News

2 mixed4 general

Eimco Elecon (India) Ltd. (EIMCOELECO) Share Price Rises 9.60% Today

Univest, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Eimco Elecon (India) Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 28 Aug

Eimco Elecon Share Price near 52-week high after Q2 update

Univest, 14 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Eimco Elecon Reports 15% Revenue Growth to ₹77.5 Cr with Stable 18.4% Margins

Sahi, 09 Jul

Bank of India Mutual Fund buys 0.57% stake in One Mobikwik Systems, Enigma Investment picks up 0.8% shares...

Moneycontrol.com, 08 Oct

Eimco Elecon (India) (NSE:EIMCOELECO) Is Doing The Right Things To Multiply Its Share Price

Simply Wall Street, 16 Jan

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong15.8/20

🟡Financial HealthAdequate10.9/20

🟢GrowthStrong16.1/20

🟡ProfitabilityModerate7.9/15

🟡ValuationFair8.1/15

🔴RiskHigh4.4/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 8% a year10.2% CAGR
✓EBITDA margin holds above 19%21.0%
✗Free cash flow remains positive-₹38 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 8%10.6%