2,500 per cent returns: This multibagger small-cap company aims for Rs 2,000 crore revenue in FY24 with an EBITDA margin of 22 per cent!

Renowned ace investor Vijay Kedia holds a 1.78 per cent stake in the company, as of June 2023.

On Wednesday, shares of Elecon Engineering Company Ltd surged 0.99 per cent to Rs 729.50 per share with an intraday high of Rs 746.40 and an intraday low of Rs 723.50.

Elecon Engineering Company Ltd., incorporated in 1960, is involved in the design and manufacturing of material-handling equipment and in craft carriers. A renowned ace investor Vijay Kedia holds a 1.78 per cent stake in the company, as of June 2023.

The company's Quarterly Results showed strong growth, with both net sales and net profit increasing significantly. Standalone net sales increased by 26.12 per cent to Rs 324.38 crore, while consolidated net sales increased by 26.43 per cent to Rs 414.34 crore.

Net profit also increased significantly, with standalone net profit increasing by 84.88 per cent to Rs 60.90 crore and consolidated net profit increasing by 72.44 per cent to Rs 72.96 crore.  The company's order book increased significantly in Q1FY24, with new orders totalling Rs 497 crore. This is an increase of 22 per cent on a year-over-year basis. The total order book stands at Rs 793 crore as of June 2023.

Additionally, the company maintains its revenue guidance of Rs 2,000 crore by FY24 with an EBITDA margin of 22 per cent (Rs 1,700 crore for Gear Division and Rs 300 crore for MHE Division). It has also made significant progress in its overseas OEM business, signing off five deals in the European market with an estimated annual business volume of EURO 5 million. The prototype is under development and will be supplied to the OEMs by Q3FY24, with commercial production expected to start from FY25. The company has also made progress in its arbitration awards and capex and is optimistic about favourable outcomes.

The stock delivered multibagger returns, with eye-popping gains of 130 just in 1 year, 400 per cent in 2 years, and a staggering 2,500 per cent in 3 years. Investors should keep a close eye on this Small-Cap stock.