1:2 Stock Split: 19 July - Record Date; Buy Vijay Kedia Portfolio Stock?

In India, Elecon Engineering Company is a major participant in EPC projects pertaining to material handling equipment. Elecon is a prominent industrial gearbox manufacturer based in India that has a global presence in Asia, the Middle East, the United States, the United Kingdom, and other regions of Europe and Africa. Elecon Engineering Company is a portfolio stock held by renowned Indian investor Vijay Kishanlal Kedia. However, what makes this stock even more noteworthy is that it has announced a record date for a 1:2 stock split, following which the shares of the firm closed 2.40% higher on the BSE at Rs 1376.15 per share.

Elecon Engineering Company Stock Split

"Pursuant to the subject referred Regulation, this is to inform you that the Company has fixed Friday, 19th July, 2024 as the "Record Date" for determining entitlement of Equity Shareholders for the purpose of sub-division/ split of existing Equity Shares of the Company, such that 1 (one) equity share having face value of Rs. 2/ - (Rupees two only) each, fully paidup, will be sub-divided into 2 (two) equity shares having face value of Re. 1/- (Rupee one only) each, fully paid-up, ranking pari-passu in all respects which was approved by the Equity Shareholders at the 64th Annual General Meeting held on 25th June, 2024," said Elecon Engineering Company in a regulatory filing.

Elecon Engineering Company Q1FY25 Result Update

"A Meeting of the Board of Directors of the Company has been scheduled on Wednesday, 17th July, 2024 at Vallabh Vidyanagar, inter alia, to consider and approve the Unaudited Financial Results (Both Standalone & Consolidated) for the quarter ended on 30th June, 2024 alongwith related segment wise financial results," the company has informed to stock exchanges.

Elecon Engineering Company Share Price Target

V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT) said, "Elecon Engineering Company Ltd., currently trading at Rs 1376.70, has delivered a remarkable 115% return within one year. As a leading gear manufacturing company in Asia, Elecon specializes in power transmission solutions and material handling equipment across various sectors in India and abroad. It falls within the small-cap category, with a total market capitalization of Rs 15,440 crore. The company's current P/E ratio is nearly 20% higher than its sector's P/E ratio. Its P/E is 43.42, compared to the sector P/E of 37.39. The return on equity is 22.17%, with a dividend yield of 0.22%. In the recent 52 weeks, Elecon has traded within the Rs 627 to Rs 1400 range."

"Elecon is currently experiencing a strong uptrend. Rather than waiting for a dip, Ambala recommends entering the stock within the range of Rs 1300 to Rs 1390, suggesting potential averaging or pyramiding strategies as per the price movement. She expects target prices ranging from Rs 1550 to Rs 2100, with a holding period of 5 to 10 weeks. To control risks, she suggests implementing a stop loss at Rs 1000. Investors looking to capitalize on Elecon's momentum may find this recommendation compelling given its current market conditions and growth trajectory," she further recommended.

Disclaimer

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