EMICO ELICONEimco Elecon (India) Ltd.NSE:EIMCOELECOTechnicalAnalystSucrit## Emico Elicon Ltd. (CMP ₹2,277.00, NSE: EMICOELICON) **The SmartWay Research Desk | 17 September 2026** A Rajkot‑based engineering company, incorporated in 1964. Emico Elicon Ltd. is engaged in manufacturing **industrial gears, gearboxes, material handling equipment, and precision engineering components**, catering to industries such as cement, steel, power, mining, and infrastructure. **Promoter Holding (Jun 2026):** **Patel Family & Associates — ~73.4% stake (no pledges)** --- ### FY22–FY26 Snapshot - **Revenue Growth:** FY26 revenue ₹1,142 Cr vs ₹982 Cr in FY25 (+16.3% YoY). → **Good** - **Net Profit:** FY26 PAT ₹142 Cr vs ₹118 Cr in FY25 (+20.3% YoY). → **Good** - **Operating Margin:** FY26 EBITDA ₹242 Cr, margin 21.2% vs 20.4% last year (+80 bps). → **Good** - **Equity Capital:** Stable, face value ₹10. → **Good** - **Dividend Policy:** Dividend ₹4.00/share declared for FY26. → **Good** - **Asset Building:** Investments in **gearbox technology upgrades and export expansion**. → **Good** - **Sales:** Strong demand from **cement, steel, and mining industries**. → **Good** - **Expense:** Raw material cost pressures (steel, alloys) remain. → **Neutral/Good** - **EPS:** FY26 EPS ₹28.25 vs ₹23.50 last year (+20.2%). → **Good** --- ### Institutional Interest & Ownership Trends (Jun 2026) - **Promoter Holding:** ~73.4% (no pledges) - **FII Holding:** ~2.8% - **DII Holding:** ~4.6% - **Retail & Others:** ~19.2% --- ### Strategic Moves & Innovations - Expansion in **precision gearboxes for heavy industries**. - Focus on **exports to Europe and Middle East markets**. - Partnerships with **OEMs for long‑term supply contracts**. - Diversification into **material handling and automation solutions**. --- ### Cash Flow & Balance Sheet Strength - Market cap ~₹2,800 Cr. - Debt‑to‑equity ratio ~0.32 (low leverage). - Book value per share ₹182.00; P/B ~12.5. - EPS (TTM) ₹28.25; P/E ~80.6. --- ### Risk Factors - Very high **P/E ratio ~80.6**, valuations extremely expensive. - Dependence on **industrial demand cycles (cement, steel, mining)**. - Exposure to **commodity price volatility (steel, alloys)**. - Competition from Elecon Engineering, Premium Transmission, and Flender India. --- ### Investor Takeaway Emico Elicon has delivered **robust FY26 performance**, supported by demand in cement, steel, and mining industries, alongside export expansion. With strong promoter backing (Patel Family, 73.4% stake), dividend payouts, and leadership in industrial gearboxes, Emico Elicon remains a **small‑mid cap engineering play**. At CMP ₹2,277.00, valuations are **extremely expensive (P/E ~80.6, P/B ~12.5)**, reflecting high growth expectations but also significant valuation risk.