Vijay Kedia’s portfolio multibagger stock: This small-cap company reports stellar quarterly results and announced outstanding order book worth Rs 793 crore!

The stock delivered multibagger returns, with a 130 per cent increase in just one year, a 400 per cent increase in two years, and a staggering 2,500 per cent increase in three years.

On Tuesday, one of the Top Gainers on BSE, shares of Elecon Engineering Company Ltd surged 18.40 per cent to make a new 52-week high of Rs 748 per share from its previous closing of Rs 631.80. At the closing bell, the shares of the company were trading at Rs 722.35 per share, up 14.33 per cent with a spurt in volume by more than 3.75 times on BSE.

The sudden rise in the stock price is due to the company announcing stellar Quarterly Results and outstanding order book. Details below:

Quarterly Results (Standalone): The net sales increased by 26.12 crore to Rs 324.38 crore and the net profit increased by 84.88 per cent to Rs 60.90 crore in Q1FY24 compared to Q1FY23.

Quarterly Results (Consolidated): The net sales increased by 26.43 crore to Rs 414.34 crore and the net profit increased by 72.44 per cent to Rs 72.96 crore in Q1FY24 compared to Q1FY23. The EPS for O1FY24 stood at Rs 6.50 for a face value of Rs 2 each.

Annual Results (Consolidated): The net sales increased by 26.22 crore to Rs 1,529.68 crore and the net profit increased by 69.04 per cent to Rs 237.49 crore in FY23 compared to FY22. The EPS for FY23 stood at Rs 21.17 for a face value of Rs 2 each.

Order Book Update: The order Inflow during Q1FY24 stood at Rs 497 crore, up by 22 per cent on a Y-o-Y basis (Gear Division: Rs 446 crore and MHE Division: Rs 51 crore) and orders in hand as on June 30, 2023, stand at Rs 793 crore (Gear Division: Rs 655 crore and MHE Division: Rs 138 crore).

Elecon Engineering Company Ltd., incorporated in 1960, is involved in the design and manufacturing of material handling equipment and in craft carriers through the acquisition of Benzlers- Radicon Group belonging to the David Brown Gear Systems.

The company has a market cap of over Rs 8,000 crore with a 5-year stock price CAGR of 65 per cent. As of June 2023, a renowned ace investor, Vijay Kedia holds a 1.78 per cent stake in the company.  

The stock delivered multibagger returns, with a 130 per cent increase in just one year, a 400 per cent increase in two years, and a staggering 2,500 per cent increase in three years. Investors should keep a close eye on this Small-Cap stock.