Elecon Engineering Company Ltd Share Price Target 2026–2030
Elecon Engineering Company Ltd is a leading Indian manufacturer of industrial gear systems and material handling equipment, serving sectors like power, mining, steel, cement, and defense. Incorporated in 1960 and headquartered in Vadodara, Gujarat, Elecon is among Asia’s largest industrial gearbox makers and supplies critical components to the Indian Navy and global OEMs. The company also operates a large foundry business for steel and non-ferrous castings. With strong order inflows, high return ratios, and near-zero debt, Elecon has emerged as a high-quality small-cap engineering stock. This article provides a data-backed outlook on the Elecon Engineering share price target 2026–2030.
Elecon Engineering Company Ltd: Company Overview
- Founded: 1960
- Headquarters: Vadodara, Gujarat
- Key Segments: Industrial Gears (72% of revenue), Material Handling Equipment, Steel & Non-Ferrous Foundry
- Strategic Edge: Only Indian player with end-to-end capabilities in heavy-duty gearboxes; key supplier to defense and infrastructure sectors
- Global Presence: Exports to over 40 countries, but primarily India-focused → not an MNC
Elecon benefits from India’s capex cycle, PLI schemes in capital goods, and import substitution in critical machinery. Its asset-light model and pricing power support high margins.
Elecon Engineering Company Ltd: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹408.00 |
| Market Capitalization | ₹9,155.52 Cr |
| No. of Shares Outstanding | 22.44 Cr |
| 52-Week High / Low | ₹739 / ₹348 |
| P/E Ratio (TTM) | 18.12 |
| P/B Ratio | 4.60 |
| EPS (TTM) | ₹22.51 |
| Book Value (TTM) | ₹88.61 |
| ROE | 22.66% |
| ROCE | 31.04% |
| Dividend Yield | 0.49% |
| Face Value | ₹1 |
| Cash | ₹164.13 Cr |
| Total Debt | ₹3.31 Cr |
| Debt-to-Equity | 0.02 |
| Sales Growth (YoY) | 16.97% |
| Profit Growth (YoY) | 12.16% |
| Promoter Holding | 59.27% |
Elecon Engineering Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹440 – ₹490 |
| 2027 | ₹480 – ₹540 |
| 2028 | ₹520 – ₹600 |
| 2029 | ₹560 – ₹660 |
| 2030 | ₹600 – ₹720 |
Elecon Engineering Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹440 | ₹490 |
Elecon reported 16.97% sales growth and 12.16% profit growth in FY2025, supported by strong order execution in gears and defense. Trading at a P/E of 18.1x—reasonable for a company with 31% ROCE—the stock appears fairly valued. With near-zero debt and ₹164 Cr cash, the balance sheet is robust. A 2026 target of ₹440–₹490 assumes continued margin stability and no major project delays.
Elecon Engineering Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹480 | ₹540 |
The company’s focus on high-margin customized gearboxes (including for the Indian Navy) offers pricing power. If EPS reaches ₹25–₹27 by FY27 and P/E expands to 19–20x (justified by ROCE >30%), the 2027 range of ₹480–₹540 is realistic.
Elecon Engineering Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹520 | ₹600 |
By 2028, benefits from capacity expansion and export diversification should reflect in profitability. Assuming EPS of ₹27–₹30 and P/E of 19–21x, the ₹520–₹600 band is justified—if execution stays flawless.
Elecon Engineering Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹560 | ₹660 |
Long-term tailwinds include India’s infrastructure push and defense indigenization. Risks include raw material volatility and competition from Chinese imports. Using a P/E of 20–22x on projected EPS (~₹28–₹32), the 2029 target is ₹560–₹660.
Elecon Engineering Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹600 | ₹720 |
Over a five-year horizon, Elecon’s value lies in its niche engineering expertise and capital efficiency—not explosive volume growth. A terminal P/E of 21–23x on FY30 EPS (~₹28.50–₹33) supports the ₹600–₹720 range.
Elecon Engineering Company Ltd: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Promoters | 59.27% |
| Public & Retail | 28.10% |
| Foreign Institutional Investors (FII) | 8.09% |
| Domestic Institutional Investors (DII) | 4.53% |
| Others | 0.00% |
High promoter holding ensures strategic continuity, while rising retail participation reflects brand trust.
Elecon Engineering Company Ltd: Strengths vs Risks
Strengths:
- Near-zero debt (₹3.31 Cr) and strong cash flow
- Industry-leading ROCE (31.04%) and ROE (22.66%)
- Monopoly-like position in defense-grade gearboxes
- Backed by India’s manufacturing and defense capex cycles
Risks:
- High P/B (4.6x) leaves little room for error
- Low dividend yield (0.49%) limits income appeal
- Stock fell ~44% from the 52-week high due to profit-taking and market rotation
- Small float (22.44 Cr shares) increases volatility
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Moderate to High |
| Ideal Time Horizon | 3–5+ years |
| Volatility | Higher than market average (small-cap engineering stock) |
| Dividend/Income Potential | Minimal (0.49% yield) |
| Best For | Quality-focused investors seeking exposure to India’s capital goods and defense story |
- Profit-taking after a 120% rally in 2023–24
- Broader market rotation away from small-caps
- Concerns over working capital and order execution delays
Final Verdict
Elecon Engineering is a high-quality, debt-light engineering company with exceptional return ratios and strategic relevance in defense and infrastructure. While recent volatility may persist, its fundamentals remain strong. Our Elecon Engineering share price target 2026–2030 (₹440 to ₹720) reflects steady appreciation driven by earnings quality, not speculation.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – Elecon Engineering Consolidated Page (FY2025 + TTM)
- Finology Ticker – ELECON Financial Ratios & Valuation
- Elecon Investor Presentation (Q3 FY26, July 2025)
- BSE India – Annual Report FY2025
- Ministry of Defence – Make in India Defense Procurement Guidelines
