Ace investor Vijay Kedia has acquired 57,441 shares of Eimco Elecon (India) Ltd for about ₹19 crore, in a bulk deal on 7th October. The move underscores his continued confidence in India’s engineering and manufacturing sector, particularly in niche, under-researched industrial companies.
Established Engineering Player
Eimco Elecon (India) Ltd, part of the Elecon Group, is a Vadodara-based manufacturer of mining and construction equipment. The company’s product portfolio includes a range of machines designed for underground and open-cast mining, cement plants, and infrastructure projects. With decades of experience and a strong technical base, Eimco Elecon caters to both domestic and international markets.
The company currently has a market capitalisation of around ₹1,100 crore. It remains debt-free, a rarity among mid-sized industrial firms, and boasts a promoter holding of 73.64%, reflecting a high level of promoter confidence and control.
Eimco Elecon: Key Financial Snapshot
| Metric | Details |
|---|---|
| Market Capitalisation | ₹1,100 crore |
| Recent Investment | Vijay Kedia bought 57,441 shares (~₹19 crore) |
| Promoter Holding | 73.64% |
| Debt Status | Debt-free |
| P/E Ratio | 23x |
| Mutual Fund Holding | Nil |
| 1-Year Return | Underperformed broader market |
| 5-Year Return | 500%+ gain |
| Sector | Mining & Construction Equipment Manufacturing |
Kedia’s Investment Philosophy
Vijay Kedia, often described as one of India’s most successful self-made investors, is known for identifying early-stage opportunities in companies with strong management, clean balance sheets, and scalable business models. His past multibagger picks include companies such as Atul Auto, Cera Sanitaryware, and Tejas Networks.
His investment in Eimco Elecon aligns with his long-standing philosophy of backing businesses with solid fundamentals that are temporarily out of favour with the market. The company’s debt-free status, promoter-driven ownership, and exposure to India’s growing mining and infrastructure push fit well into this framework.
Sector Outlook
India’s focus on self-reliance in key industrial sectors, coupled with increased mining and construction activity, has boosted demand for heavy equipment and engineering solutions. Eimco Elecon, with its established manufacturing base and technical capabilities, stands to benefit from this structural tailwind.
However, as with most cyclical industries, near-term earnings growth may depend on broader economic and commodity trends. Investors may need to adopt a long-term perspective to fully realise the company’s potential.
Conclusion
Kedia’s entry into Eimco Elecon has drawn attention to an otherwise overlooked mid-cap industrial stock. With robust financials, consistent profitability, and no institutional participation yet, the company presents a potential re-rating opportunity if earnings momentum sustains.
While it remains to be seen whether the stock can replicate its past multibagger performance, the endorsement from one of India’s most respected value investors has undoubtedly put Eimco Elecon back on the radar of serious market watchers.
