Elecon Engineering Co Ltd. - Nayan M Vala Securities Pvt. Ltd.
Elecon Engineering Co Ltd. - Nayan M Vala Securities Pvt. Ltd.
Elecon Engineering Co Ltd. - Nayan M Vala Securities Pvt. Ltd.
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Telephones NAYAN M. VALA SECURITIES PVT. LTD.<br />
022-26105973/74/32549230/32448788 403-404, <strong>Co</strong>smos <strong>Co</strong>urt<br />
Fax.26124310/E-Mail: vala@bom3.vsnl.net.in<br />
Above Waman Hari Pethe Jewellers<br />
Website: www.nayanmvala.com<br />
S. V. Road, Vile-Parle (west)<br />
Mumbai-400056<br />
‣ <strong>Co</strong>nsistency in Financial Performance: The companies past performance can<br />
be inferred from the tables given below:-<br />
Source: CMIE<br />
` in crores Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 CAGR<br />
Income 191.33 325.63 516.07 847.69 960.18 1058.88 1155.5 29.29%<br />
Sales 187.7 322.57 507.74 839.46 950.38 1049.3 1130 29.23%<br />
PBIDTA 17.06 34.64 65.96 116.42 140.51 156.53 175.76 39.54%<br />
PBDTA 10.14 25.39 50.8 97.06 113.08 108.16 124.87 43.14%<br />
PBT 2.3 17.16 41.01 84.39 98.67 85.61 91.09 69.14%<br />
PAT 2.17 9.79 27.92 54.89 67.2 54.97 66.95 63.21%<br />
Source: CMIE<br />
Years ROCE % ROE % Dividend Yield % Dividend Rate %<br />
2003‐2004 1.05 1.55 0 10<br />
2004‐2005 10.81 16.47 0.34 25<br />
2005‐2006 19.14 31.49 0.25 50<br />
2006‐2007 24.17 35.89 0.2 75<br />
2007‐2008 21.32 30.64 1.12 75<br />
2008‐2009 13.38 22.24 3.32 75<br />
2009‐2010 13.64 21.78 1.65 75<br />
Areas of <strong>Co</strong>ncerns:<br />
‣ Raw material price: <strong>Co</strong>mpanies majority contracts do not have any price<br />
variation clause so any increase in the raw material prices would hamper<br />
company’s margin.<br />
‣ Delay in execution of projects: Delay in execution of the projects on account<br />
any resource constraints or otherwise might impact the revenue of the<br />
company.<br />
<strong>Co</strong>mpany Profile:<br />
<strong>Elecon</strong> <strong>Engineering</strong> <strong>Co</strong>. <strong>Ltd</strong>. (EEL) was incorporated on 11 January 1960 in<br />
Goregaon, Mumbai. In 1966, the company shifted its registered office from<br />
Goregaon, Mumbai to Vallabh Vidaynagar, Gujarat. <strong>Elecon</strong> <strong>Engineering</strong> was<br />
promoted by Late Bhanubhai I. Patel his son - Prayasvin B. Patel, is the Chairman<br />
and the managing director of the company. The company manufactures<br />
engineering products for core industry sectors like steel, fertilizer, cement, mining,<br />
power, ports and defense. The company has three main business portfolios, namely,<br />
bulk material handling plant (contributes 60.59% to sales), industrial gears<br />
(contributes 39.41% to sales) and windmills. It designs and manufactures all type of<br />
bulk material handling equipments like belt conveyors, pusher cars, idlers and<br />
pulleys, ship loaders and unloaders, feeders. It also manufactures transmission<br />
gears like worm gears, parallel shaft and right angle shaft, helical and spiral bevel<br />
helical gears, fluid, geared & flexible couplings and planetary gear boxes. It set up<br />
an alternate energy division for manufacturing and supply of wind turbine<br />
generators in 1995. The company has a pan India presence and also has offices in<br />
the UAE, Singapore and South Africa.<br />
MEMBER: NATIONAL STOCK EXCHANGE OF INDIA LTD<br />
CODE NO.23/13511/13
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