Elecon Engineering (NSE: Elecon): Brokerages bullish on this Vijay Kedia stock; check fresh targets

Domestic brokerage firms continue to remain positive on a multibagger stock, backed by ace investor Vijay Kishanlal Kedia, and see a decent upside potential in the counter. The stock has managed to draw the attention of both technical and fundamental investors, who see double-digit gains in the counter from today's lows.

The stock is Elecon Engineering Company Ltd (NSE: Elecon), which showed a decent recovery from Tuesday's low. The stock has plunged more than 25 per cent from its 52-week high of Rs 625.45, hit in July 2026. The industrial equipment maker currently commands a stock price around Rs 470-480 apiece and a market capitalisation of nearly Rs 10,000 crore.

Despite a flat return in 2026 so far, shares of Elecon Engineering have gained more than 475 per cent in the last five years. The stock is up nearly 37 per cent in the last six months, while it is up 17 per cent in the last one month period. It has posted double digit gains in a week, despite fragile market sentiments.

Elecon reported a record Rs 1,518 crore order book and 23 per cent YoY growth in Q1 order inflows, supporting strong revenue visibility. The Gear division remained the key growth driver, while MHE demand stayed healthy despite execution delays. Exports grew 21.9 per cent, with international orders and recovering European subsidiaries emerging as key growth drivers, said Axis Securities.

Despite near-term headwinds, its strong order backlog and steady order inflow outlook across domestic and international markets provide healthy earnings visibility over the medium term. Management expects project execution to improve meaningfully from Q2FY27. Export contribution is expected to increase further over the medium term, it added, with a 'buy' rating and a target price of Rs 505 on it.

Seasoned stock market investor Vijay Kishanlal Kedia owned 22,50,000 equity shares, or 1 per cent stake in Elecon Engineering Company as of June 30, 2026. At the current stock price, his stake is valued at Rs 106-108 crore. However, the shareholding pattern for the September 2026 quarter is yet to be announced.

Elecon Engineering Company has formed a strong bullish candlestick pattern on the daily chart. The price action reflects strong buying interest and indicates improving momentum. It has given a bullish breakout from a cup & handle pattern, marking a potentially significant improvement in its technical structure. The breakout is supported by trading volume and strong price action, said Systematix Institutional Equities.

From a trend perspective, prices have confirmed a 'higher top–higher bottom' formation, indicating that the broader price structure remains constructive. The alignment of price action and moving-average structure strengthens the overall bullish setup. The momentum indicator RSI-14 is also showing positive divergence, it added, with a 'buy' rating and a target price of Rs 498-520 and a stop loss of Rs 460.