Elecon Engg.Co (ELECON)
Fast GrowerFairStock Score: 64/100 — STEADY
Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹432.35 |
| Market Cap | ₹9,701.93 Cr |
| P/E Ratio | 41.14 |
| ROCE | 28.46% |
| ROE | 24.1% |
| Dividend Yield | 0.46% |
| Profit Growth | -59.8% |
| Debt/Equity | 0.12 |
| Sales Growth | 6.1% |
| Free Cash Flow | ₹116.53 Cr |
| Promoter Holding | 59.27% |
| 52-Week Range | ₹352 — ₹579.25 |
| Sector | Electrical Equipment |
| Book Value | ₹102.76 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
At ₹512.75, I must first admit I don't buy what I cannot value. This is a profitable, conservatively financed business: ROE of 24.10%, ROCE of 28.46%, debt-equity of only 0.09, and free cash flow of ₹117 Cr. Promoter holding of 59.27% also aligns owners with minority shareholders. Sales grew 21.26% and profit grew 29.38%; the latest quarter shows ₹552 Cr sales and ₹72 Cr net profit. That looks like a quality compounder with a niche in heavy electrical equipment. But Buffett's first rule is price. The P/E of 22.56 and P/B of 5.76 already pay for much optimism. Graham's conservative value is ₹207.43, so today's price carries a margin of safety of -100.48%. However strong the business, there is no margin of safety. The stated DCF value of ₹8.02 is so far from the market price that I either distrust the assumptions or conclude the price embeds perfection. The negative EV/EBITDA also tempers my enthusiasm — I would dig into cash-flow distortions before paying a premium. Piotroski F-Score of 7/9 and Altman Z-Score of 4.33 indicate solid financial health, but those are checkpoints, not valuation. Would I call this a Stalwart? Yes — a steady operator with high returns, moderate growth, and a conservative balance sheet. But a stalwart must be bought at a sensible price. At 5.76 times book and 22.56 times earnings, the market is offering no margin of safety. In a cyclical industry, today's growth could reverse, and paying 22 times a 29% profit increase may prove dangerous. I would wait for a deeper discount nearer to a Graham-type valuation, or let earnings grow into the price over years. Discipline matters more than FOMO.
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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer