5 days ago
Brokerages Turn Bullish on Elecon Engineering, Set Fresh Targets
Elecon Engineering makes equipment and has received many new orders.
Its order book reached a record Rs 1,518 crore.
Orders grew 23% from the same period a year earlier.
The Gear division was the company’s main growth engine.
Exports also increased, and overseas businesses showed signs of recovery.
Two brokerages recommended buying the stock.
They set target prices between Rs 498 and Rs 520, or Rs 505.
Vijay Kedia owned 1% of the company at the end of June 2026.
Elecon reported a record Rs 1,518 crore order book and 23% year-on-year growth in first-quarter order inflows.
Axis Securities retained a buy rating with a target price of Rs 505, citing order visibility and export growth.
Systematix Institutional Equities gave a buy rating, setting a target range of Rs 498-520 and a Rs 460 stop loss.
Elecon’s Gear division drove growth, while Material Handling Equipment demand remained healthy despite execution delays.
Vijay Kedia held a 1% stake worth approximately Rs 106-108 crore as of June 30, 2026.
- Who
- Elecon Engineering Company, Axis Securities, Systematix Institutional Equities, and investor Vijay Kedia.
- What
- Brokerages issued bullish views and fresh price targets for Elecon Engineering shares.
- Where
- Elecon’s domestic and international markets, including its European subsidiaries.
- When
- The assessments refer to 2026, including the quarter ended June 30, 2026, and expectations for Q2FY27.
- Why
- A record order book, rising order inflows, export growth, and expected improvement in project execution supported the positive outlook.
Positive outlook
Near-term cautions
Earnings visibility
Positive outlook
Axis Securities said the strong order backlog and steady domestic and international inflows support healthy medium-term earnings visibility.
Near-term cautions
The article notes near-term headwinds and execution delays, particularly affecting project delivery.
Growth drivers
Positive outlook
Brokerages highlighted the Gear division, 21.9% export growth, international orders, and recovering European subsidiaries.
Near-term cautions
Material Handling Equipment demand remained healthy but was affected by execution delays.
Share-price outlook
Positive outlook
Systematix identified a bullish breakout, stronger price action, and positive RSI-14 divergence, while both brokerages recommended buying.
Near-term cautions
The stock’s return was flat so far in 2026, despite stronger gains over longer and shorter periods.
Key facts
- Order book
- Rs 1,518 crore, described as a record
- Order inflow growth
- 23% year-on-year in Q1
- Axis Securities target
- Rs 505, with a buy rating
- Systematix target
- Rs 498-520, with a buy rating
- Systematix stop loss
- Rs 460
- Export growth
- 21.9%
- Vijay Kedia stake
- 22,50,000 shares, or 1%, as of June 30, 2026
- Five-year stock performance
- More than 475% gain
Sources
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