Elecon Engineering Shares Fall After Gear Division Lags In Q3 Growth
Elecon Engineering reported 2.1% growth in gear division in the third quarter of fiscal 2025.
Elecon Engineering Ltd. shares fell after the company reported marginal growth in the gear division in the third quarter of fiscal 2025.
The segment accounts for half of the company's total revenue. The marginal movement of growth in the gear division was reported to be 2.1% in the third quarter.
The net profit of the company increased by 19%, and stood at Rs 107.5 crore. The number last year was at Rs 90.4 crore.
The company's revenue was up 11.7% and was recorded at Rs 529 crore. The revenue stood at Rs 474 crore the previous year. The Ebitda for the year under review increased by 18.4% to Rs 142.5 crore, against Rs 120 crore recorded last year. The margin expanded to 27%, against 25.4% the previous year.
Despite these numbers, there was sluggishness in the domestic market and this resulted in capex investment delay. The company also saw delays in order inflow for financial year 2025. The major down pull in the numbers was the marginal growth reported by the gear division.
Elecon Engineering Share Price
Elecon Engineer Ltd. stock fell as much as 10.04% during the day to Rs 544.8 apiece on the NSE. It was trading 9.82% lower at Rs 546 apiece, compared to a 0.11% decline in the benchmark Nifty 50 as of 2:07 p.m.
It has risen 8.70% in the last 12 months. Total traded volume so far in the day stood at 3.3 times its 30-day average. The relative strength index was at 37.6.
Of the three analysts tracking the company, two have a 'buy' rating on the stock, and one recommends a 'hold', according to Bloomberg data. The 12-month analysts' consensus target price on the stock was Rs 713, implying an upside of 29.7%.
