In a remarkable testament to India’s manufacturing renaissance, Elecon Engineering Company (EECL) — once a quiet small-cap name in industrial gears — has evolved into a multi-million bagger, rewarding early investors with staggering 58x returns. Now, Emkay Global has reaffirmed its ‘BUY’ rating on the counter, setting a 12-month target price of INR 750, implying nearly ~39% upside from its current market price of INR 542.
The Multi-Million Bagger Journey
Back in November 2020, Elecon Engineering share price was trading at around INR 11.90 per share. Fast forward to June 2025, and the stock scaled an all-time high of INR 694.30 — an astonishing rise of 5,734.45%. In simpler terms, an investment of INR 1 lakh in November 2020 would now be worth roughly INR 58 lakh, making it one of the most extraordinary wealth creators of India’s post-COVID market cycle.
Vijay Kedia’s Visionary Bet
Ace investor Vijay Kedia, known for his knack for identifying future market leaders, entered Elecon Engineering in June 2021 when the stock hovered around INR 70. At that time, Kedia acquired 13,37,722 shares, translating to an investment of approximately:
INR 70 × 1,337,722 = INR 9.36 crore
Today, with Elecon trading at INR 542, that stake alone would be worth over INR 72.64 crore — a return of nearly 676% in just four years.
Kedia has since increased his holding ~70%, in terms of number of shares, as of the latest shareholding data, he owns 22,50,000 shares, representing about 1.0% of Elecon’s equity.
Emkay’s Bullish Target Despite Rally
According to Emkay Global Financial Services’ latest research report, Elecon Engineering remains a compelling growth story despite its phenomenal run. The brokerage has maintained its BUY rating with a target price of INR 750, highlighting strong order inflows and margin expansion potential.
Key Takeaways from Emkay’s Report:
- Q2FY26 performance: Revenue up 14% YoY to INR 580 crore, EBITDA up 12%, PAT flat due to higher depreciation and tax.
- Order book strength: Order inflows jumped 28% YoY to INR 690 crore, taking backlog to INR 1,230 crore (+27% YoY).
- Guidance: FY26 revenue guidance maintained at INR 2,650 crore with ~24% EBITDA margin.
- Capex: Planned investment of INR 400 crore over FY26–28 for capacity expansion and modernization.
- Exports Outlook: While Q2 exports were flat due to Middle East tensions, management expects recovery from Q3 onward, targeting 50% export share by FY30.
At current levels, Elecon trades at a P/E of ~18.4x on FY27E EPS, which Emkay considers attractive for a company with 24% PAT CAGR (FY25–28E) and robust return ratios (RoE 23%, RoIC 45%).
Fundamentals Fueling the Growth
Elecon Engineering, a leader in industrial gears and material handling equipment (MHE), has been a key beneficiary of India’s infrastructure push and manufacturing upcycle. With strong exposure to steel, power, and cement sectors and increasing export traction in Europe, the Middle East, and the Americas, Elecon is diversifying beyond cyclical domestic demand.
Financially, the company is in a sweet spot:
- FY26E Revenue: INR 2,658.4 crore
- FY26E PAT: INR 485.5 crore
- Debt-free balance sheet: Net cash of nearly INR 990 crore
- ROIC: 37.9% (FY26E), rising to 45.5% by FY28E
From Small-Cap to MidCap
What began as a small-cap gear maker is now a INR 12400 crore market-cap company (≈USD 1.4 billion), firmly establishing itself among India’s industrial champions. The promoter group holds 59.3%, while FPIs and mutual funds collectively own 12.4%, reflecting growing institutional confidence.
Still Room to Grow!
Even after a 58-fold rally in less than five years, analysts believe the Elecon story isn’t over yet.
As Emkay’s Ashwani Sharma and Abhishek Taparia put it, “EECL’s leadership in gears, strong export momentum, and robust MHE recovery position it as a key beneficiary of India’s industrial cycle as well as global opportunities.”
For long-term investors — especially those who missed Kedia’s early entry — Emkay’s bullish stance signals that the Elecon engine still has miles to run.
Summary Snapshot:
| Metric | Value |
|---|---|
| CMP (Oct 2025) | INR 542 |
| Target Price (Emkay) | INR 750 |
| Upside Potential | ~36% |
| FY26E EPS | INR 21.6 |
| FY28E EPS | INR 33.2 |
| P/E (FY27E) | 18.4x |
| Vijay Kedia Holding | 2.25 million shares (1%) |
| Return Since Nov 2020 (INR 11.9 → 694.3) | +5,734% |
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