Multibagger alert: This BSE small-cap stock has delivered over 1100% in just two years!

Multibagger alert: This BSE small-cap stock has delivered over 1100% in just two years!

by 5paisa Research Team Last Updated: Sep 07, 2023 - 05:09 pm 21.8k Views
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These returns are 11.2 times the returns generated by the S&P BSE SmallCap index.

Elecon Engineering Co Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last two years. During this period, the company’s share price has appreciated 1169%, going from Rs 26.1 apiece on 20 July 2020 to Rs 331.25 on 19 July 2022.

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 12.69 lakh today.

With this performance, the company has heavily outperformed the S&P BSE SmallCap index, of which the company is a part. In the last two years, the index has delivered returns of 104%.

Looking at the company’s financials, in FY22, on a consolidated basis, the company’s net revenue increased 15.2% YoY to Rs 1203 crore. The PBIDT climbed 33.3% YoY to Rs 255.7 crore. The PAT came in at Rs 139 crore, exhibiting a growth of 149% YoY.

On the valuations front, the company is trading at a TTM PE of 26.45x against the industry PE of 32.4x. In FY22, the company generated an ROE and ROCE of 14% and 17.5%, respectively.

Today, the scrip opened at Rs 334 and has touched a high and low of Rs 348.20 and Rs 325.20, respectively. So far 1,56,984 shares have been traded on the bourses.

Elecon Engineering Company Ltd is engaged in delivering power transmission solutions and material handling equipment. The company caters to the needs of various sectors like steel, fertilizers, cement, coal, lignite and iron ore mines, sugar, power stations and port mechanization in India and abroad. They have emerged as the largest gear manufacturing company in Asia.

At 1.58 pm, the shares of Elecon Engineering Co. Ltd were trading at Rs 336.45, an increase of 1.57% from the previous day’s closing price of Rs 331.25 on BSE. The stock has a 52-week high & low of Rs 348.20 and Rs 129.30 respectively on BSE.

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