Eimco Elecon's Revenue, Profit Plummet; Vijay Kedia's Stake Boosts Stock
Eimco Elecon, a prominent manufacturer and supplier to India's mining and construction sectors, has reported a significant decline in its financial performance. The company's revenue and profit have plummeted, leading to a drop in its stock price. Meanwhile, prominent investor Vijay Kedia has acquired a stake in the company, sparking a surge in its share price.
Eimco Elecon's revenue and net profit for the quarter ending September 2022 (Q2FY26) fell by 50% and 59% year-on-year (YoY), respectively. This follows a quarter-on-quarter (QoQ) decline of 50.8% in revenue and 62.6% in profit before tax (PBT). The company's operating profit also dropped by 57.6% QoQ and 65.4% YoY.
The company's market capitalization stands at Rs. 1,169.89 crore. Despite the dismal earnings report, Eimco Elecon's stock price fell by 13%. However, it has since surged by 20%, the highest increase since April, following a fresh stake acquisition by renowned investor Vijay Kedia. Kedia Securities Private Limited purchased 57,441 shares at Rs. 1,906.71 per share, investing approximately Rs. 10.95 crore.
Eimco Elecon's financial performance has taken a significant hit, with revenue and profit declining both QoQ and YoY. Despite the setback, the company's stock price has rebounded following Vijay Kedia's investment, indicating renewed investor confidence. The impact of this investment on the company's future performance remains to be seen.
