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Elecon Engineering Shares Rise Despite Market Sell-Off on Strong Outlook
Elecon Engineering shares rose even though the wider Indian stock market fell.
The shares gained more than 16% in five trading sessions.
Axis Securities believes the company could perform well and recommended buying its shares.
It set a target price of ₹505 per share.
Elecon has a large order book, which means it has many projects lined up.
Its Gear division grew strongly during the first quarter of FY27.
The company also earned more money from exports.
Axis expects project work and overseas business to improve in the coming quarters.
Elecon Engineering shares rose nearly 7% on Monday, gaining more than 16% over five trading sessions.
Axis Securities issued a BUY recommendation with a ₹505 target price, implying about 10% upside.
Elecon reported a record consolidated order book of ₹1,518 crore and Q1 FY27 order inflows of ₹755 crore.
The Gear division remained the main growth driver, with revenue up 16% year-on-year to ₹416 crore.
Exports rose 21.9% year-on-year to ₹151 crore, while the brokerage expects project execution to improve from Q2 FY27.
- Who
- Elecon Engineering Company and Axis Securities.
- What
- Elecon Engineering shares gained strongly, while Axis Securities recommended buying the stock.
- Where
- The company operates in domestic and international industrial markets; the market movement discussed is in India.
- When
- The share rise was reported on Monday, 28 September; the company’s cited operating figures are for Q1 FY27.
- Why
- The brokerage cited Elecon’s record order book, strong Gear division, improving exports, and expected improvement in project execution.
Key facts
- Five-session share performance
- More than 16% gain
- Monday share move
- Nearly 7% rise
- Brokerage recommendation
- BUY by Axis Securities
- Target price
- ₹505 per share
- Consolidated order book
- ₹1,518 crore
- Q1 FY27 order inflows
- ₹755 crore, up 23% year-on-year
- Export revenue
- ₹151 crore, up 21.9% year-on-year
Sources
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