Elecon Engineering Company Limited (ELECON.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+47.1%

₹626.53

vs ₹425.80 price

Levered DCF

₹473.24

After debt service

Piotroski score

3 / 9

Weak

Altman Z-score

7.01

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	25.09×	24.11×	30.84×	18.06×	11.49×	12.35×	2.38×	10.24×
P/B	3.71×	5.01×	6.84×	3.35×	1.54×	0.78×	0.25×	0.93×
P/S	3.62×	4.49×	5.66×	2.8×	1.33×	0.68×	0.2×	0.59×
EV / EBITDA	14.84×	18.18×	22.72×	12.41×	6.52×	5×	4.28×	8.52×
Gross margin	44.9%	44.4%	45.6%	43.5%	43.8%	44.6%	39.1%	35.1%
Operating margin	17.7%	33.7%	34.5%	31.8%	31.7%	31.4%	24.9%	21.4%
Net margin	14.4%	18.6%	18.4%	15.5%	11.6%	5.5%	8.2%	5.7%
Current ratio	2.94×	3.16×	3.05×	2.59×	1.64×	1.35×	1.22×	1.24×
Debt / equity	0.12×	0.09×	0.04×	0.04×	0.14×	0.36×	0.57×	0.71×
Interest coverage	16.82×	56.27×	75.26×	35.37×	10.08×	5.44×	3.49×	3.62×
Dividend yield	0.5%	0.3%	0.3%	0.4%	0.3%	0.0%	1.4%	0.4%
Payout ratio	13.2%	8.1%	9.5%	6.6%	3.2%	0.2%	3.2%	3.9%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	14.8%	20.8%	22.2%	18.6%	13.4%	6.3%	10.5%	9.1%
Return on invested capital	12.0%	26.0%	29.5%	27.5%	24.8%	17.4%	19.2%	14.3%
Return on assets	10.5%	15.2%	16.7%	13.7%	8.2%	2.9%	4.2%	3.2%
Free cash flow yield	2.3%	3.7%	3.0%	6.1%	12.5%	34.3%	98.1%	5.9%
Earnings yield	4.0%	4.1%	3.2%	5.5%	8.7%	8.1%	42.2%	9.8%
Enterprise value	₹86.6B	₹100.3B	₹109.3B	₹42.6B	₹16.8B	₹9.5B	₹6.2B	₹12.1B
Net debt / EBITDA	0.18×	0.04×	-0.08×	-0.09×	0.26×	1.26×	2.81×	3.47×
Cash conversion cycle (days)	122	93	98	121	144	138	93	198