Vijay Kedia’s portfolio multibagger stock with Rs 796 crore order book; Board announces stock split and 100 per cent dividend; scrip hit 52-week high

The stock delivered multibagger returns, with eye-popping gains of 165 in just 1 year, 1,335 per cent in 3 years, and a staggering 1,830 per cent in 5 years.

On Monday, shares of Elecon Engineering Company Ltd surged 6.72 per cent and made a fresh new 52-week high of Rs 1,244.95 per share from its previous closing of Rs 1,166.60 with a spurt in volume by more than 2 times on BSE. The stock delivered multibagger returns, with eye-popping gains of 165 in just 1 year, 1,335 per cent in 3 years, and a staggering 1,830 per cent in 5 years.

Elecon Engineering Company Ltd., established in 1960, is a manufacturer of industrial equipment with a global presence, specializing in power transmission and material handling equipment. They design, manufacture and sell this equipment across India and internationally. Additionally, Elecon operates a steel and non-ferrous foundry business, giving them a well-rounded approach to industrial equipment production. Notably, they were the first to introduce modular design concepts, case-hardened, and ground gear technology in India, showcasing their commitment to innovation in the power transmission sector.

The Board of Directors of the company has proposed a final dividend of Rs 2 (i.e. 100 per cent) per equity share have a face value of Rs 2 per share. Additionally, the Board has approved the sub-division of the equity shares i.e., the existing 1 equity share of the face value of Rs 2 each will be split into 2 equity shares of the face value of Rs 1 each.

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According to the Quarterly Results, the net sales increased by 33 per cent to Rs 564.62 crore and net profit increased by 52.6 per cent to Rs 101.18 crore in Q4FY24 compared to Q4FY23. In its annual results, the net sales increased by 26.7 per cent to Rs 1,937.32 crore and net profit increased by 49.1 per cent to Rs 349.17 crore in FY24 compared to FY23.

As of March 2024, two ace investors, Vijay Kedia owns a 1.34 per cent stake and Ajay Upadhyaya owns a 1.78 per cent stake in the company. The company has a market cap of over Rs 13,000 crore and the company’s order book stands at Rs 796 crore as of March 31, 2023. Investors should keep a close eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.