Multibagger: Analysts see 45% upside in this Vijay Kedia-backed stock after 4700% in 5 yrs

Shares of Vijay Kedia-backed Elecon Engineering Company have delivered multibagger returns to investors over the last few years. However, the company reported a mixed set of numbers in the September 2025 quarter, but brokerage firms continue to remain positive on the stock and see up to another 45 per cent upside in the stock.

Elecon Engineering clocked a profit after tax (PAT) at Rs 87.72 crore in the quarter ended on September 30, 2025. It reported total income of Rs 596.45 crore, up 14.8 per cent on a year-on-year (YoY) basis, while its ebitda grew 11.9 per cent YoY) to Rs 126 crore in the quarter under review. Elecon reported order-in-take for the quarter of Rs 688 crore, with a growth of 28 per cent YoY.

Elecon Engineering reported a weak set of numbers for 2QFY26 mainly affected by delayed orders from the Middle East market in the gear division. It delivered moderate revenue growth mainly driven by the strong performance of the material handling equipment (MHE) division. However, it was unable to compensate for the weaker numbers from the gear division, said Share India.

The company’s current order book stands at Rs 1,230 crore with the gear division contributing a major chunk of Rs 770 crore and MHE division contributing the rest. On the exports front, the company foresees a recovery by 3QFY26 and at the same time the company is anticipating a sizable order of Rs 1,000 from the defence segment in 4QFY27, it said.

"Overall, the management seemed positive on the 2HFY26 outlook and reiterated their full year guidance. To achieve the revenue guidance, the company plans to maintain the quarterly run rate of Rs 800 crore. We remain positive on the stock and thus retain our estimates as we have strong conviction in their execution capabilities," Share India added with a 'buy' rating and target price of Rs 774.

The stock has corrected nearly 10 per cent since the outcome of its Q2 earnings, while it has plunged nearly 27 per cent from its 52-week high at Rs 738.85, hit a year ago. Even after a sharp correction from its recent peak, the stock has rebounded nearly 60 per cent from its 52-week low at Rs 348.05 in March 2025 to Rs 552 on Thursday.

Interestingly, Elecon Engineering has delivered multibagger returns to investors in the longer-run. The industrial products company has zoomed nearly 4,700 per cent, or 47 times, in 5 year from a level of Rs 11.40. The stock has tripled investors' wealth in three years. It has soared nearly 5,500 per cent, or 55 times, from its Covid-19 lows.

"Elecon reported a mixed set of results for Q2FY26 on account of unfavorable mix in the gear business. The flat PAT growth was owing to increase in depreciation on new capacity commissioning and higher tax rate. On a positive note, order inflow jumped up 28 per cent YoY. We maintain 'BUY' on Elecon Engineering Company with target price of Rs 750,"said Emkay Global.

"The management indicated a strong enquiry pipeline across the business and exuded confidence in achieving Rs 2,650 crore revenue for FY26. Besides the strong domestic demand, we expect exports to see a meaningful recovery on the back of increased focus on key geographies, such as Europe, Middle East, Americas, Nordic countries, and Russia," it added.

Ace Dalal Street investor Vijay Kishanlal Kedia owned 22,50,000 equity shares, or 1 per cent stake, in Elecon Engineering as of September 2025. His stake in the company was valued at Rs 124.2 crore as of the given date. However, he has been consistently trimming his stake since the March 2023 quarter.

Elecon Engineering manufactures industrial gearboxes and material handling equipment. It is one of Asia's largest manufacturers of industrial gearboxes, with a global presence and a wide range of products including helical, worm, and planetary gearboxes.