Elecon Engineering Company Limited Fundamental Analysis (BSE: ELECON.BO)
Elecon Engineering Company Limited Fundamental Analysis (BSE: ELECON.BO)
Elecon Engineering Company Limited (BSE: ELECON.BO) shows moderate financial fundamentals with a PE ratio of 40.04, profit margin of 9.85%, and ROE of 10.74%. The company generates $24.0B in annual revenue with strong year-over-year growth of 14.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ELECON.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakELECON.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateELECON.BO shows balanced valuation metrics.
Growth Score
ExcellentELECON.BO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentELECON.BO maintains a strong and stable balance sheet.
Profitability Score
WeakELECON.BO struggles to sustain strong margins.
Key Financial Metrics
Is ELECON.BO Expensive or Cheap?
P/E Ratio
ELECON.BO trades at 40.04 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ELECON.BO's PEG of -0.74 indicates potential undervaluation.
Price to Book
The market values Elecon Engineering Company Limited at 4.10 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.45 times EBITDA. This signals the market has high growth expectations.
How Well Does ELECON.BO Make Money?
Net Profit Margin
For every $100 in sales, Elecon Engineering Company Limited keeps $9.85 as profit after all expenses.
Operating Margin
Core operations generate 20.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.74 in profit for every $100 of shareholder equity.
ROA
Elecon Engineering Company Limited generates $7.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Elecon Engineering Company Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Elecon Engineering Company Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
ELECON.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.74
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How ELECON.BO Stacks Against Its Sector Peers
| Metric | ELECON.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.04 | 30.56 | Worse (Expensive) |
| ROE | 10.74% | 1179.00% | Weak |
| Net Margin | 9.85% | -20816.00% (disorted) | Weak |
| Debt/Equity | 0.12 | 0.39 | Strong (Low Leverage) |
| Current Ratio | 2.94 | 24.25 | Strong Liquidity |
| ROA | 7.30% | -1313610.00% (disorted) | Weak |
ELECON.BO outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Elecon Engineering Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
104.72%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
363.03%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
94.71%
Industry Style: Cyclical, Value, Infrastructure
High Growth