2,200 per cent returns and FIIs increase stake: Vijay Kedia’s multibagger stock bags new order worth Rs 82.78 crore from ArcelorMittal Nippon Steel!

Shares of the company gained more than 40 per cent in the last six months.

Elecon Engineering has secured a significant Rs 82.78 crore (excluding GST) contract from steel giant ArcelorMittal Nippon Steel India for their Hazira plant in Gujarat. This domestic deal involves manufacturing and supplying Belt Conveyor Mechanical Equipment and Technological Structure.

The order highlights Elecon's expertise in industrial gear and material handling equipment, further strengthening its presence in the steel sector. The successful execution of this project will enhance ArcelorMittal's production capabilities and solidify Elecon's position as a trusted partner for major infrastructure projects.

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The company has also posted strong Quarterly Results in Q2FY24. The revenue of the company stood at Rs 484.90 crore which grew by 24.78 per cent YoY. The operating profit of the company stood at Rs 131.29 crore which grew by 35.52 per cent on a YoY basis, while the PAT of the company stood at Rs 86.78 crore, which increased by 36.68 per cent on a YoY basis. This combined with the ArcelorMittal deal paints a promising picture for Elecon's continued growth and market leadership in the industrial engineering space.

Elecon Engineering Company Limited, incorporated in 1960, is involved in the design and manufacturing of Material Handling Equipment and Incraft carriers through the acquisition of Benzlers- Radicon Group belonging to the David Brown Gear Systems. The shares of the company have gained about 2,200 per cent in the last three years and FIIs have increased their stake in the company. Ace investor Vijay Kedia holds a 1.47 per cent stake in the company.

The stock has shown tremendous growth and investors should keep a close eye on this stock.