Vijay Kedia Portfolio: Ace investor picks 1 lakh extra shares in this multibagger stock; scrip up 160% in 6 months – should you Buy?

Vijay Kedia Portfolio, Multibagger Stock: Ace investor Vijay Kedia has bought additional shares in multibagger stock – Elecon Engineering Company Limited — during the September 2022 quarter, according to the shareholding pattern available on the BSE. This small-cap industrial equipment stock has jumped over 160 per cent in the last six months.

The renowned investor picked up 1,00,000 shares or nearly 0.1 per cent stakes in Elecon Engineering during the September quarter, taking the total holding to 21,75,000 equity shares or 1.94 per cent stakes in the company as per the data available on the BSE.

In June 2022 quarter, the well-known investor had 20,75,000 equity shares or 1.85 per cent stakes in the company as per the BSE data.  Kedia had been invested in the stock since June 2021, he stayed put in it for the next three quarters and added extra shares in the last two quarters, consecutively.

The ace investor Kedia publicly holds 16 stocks with a net worth of over Rs. 756.7 crore as of November 09, 2022, according to the stock analysis website trendlyne.com. To name some, he has holdings in Mahindra Holidays, Panasonic Energy, Tejas Networks among others.

Elecon Engineering Q2 Performance

Elecon delivered a robust performance in the July-September quarter of the financial year 2022-23 (Q2FY23) due to an all-round beat across segments along with record EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) margin of 23.8 per cent.

The company’s gear business continues to witness strong demand, driven by the steel, cement, power and fertiliser sectors and the overall order book stood at Rs 714 crore as the standalone order book grew 12 per cent quarter-on-quarter (QoQ).

Brokerage Bullish on Elecon Engineering

The management commentary remains bullish, and the stock has the potential to surprise on the upside, given strong order enquiries and margin trend, Edelweiss Wealth Research said. It added that the margin guidance of 22 per cent provides increased confidence in bottom-line growth.

The brokerage revised EPS estimates by 25 and 15 per cent for FY23 and 24E, respectively, mainly driven by a strong margin trend and keep revenue estimates broadly unchanged and reaffirmed a Buy rating with a revised target price of Rs 480, valuing the stock at 20x FY24e PE.

Elecon Engineering Share Price History

Since Elecon’s Q2 results announcement on November 3, 2022, the stock has gained nearly 18 per cent, it closed around 4.5 per cent higher at Rs 435.65 per share on Tuesday, after hitting an all-time high of Rs 439 per share intraday on the BSE.

The stock in the last one month has gained around 30 per cent, while gaining over 150 per cent in the last one year, while it jumped over 127 per cent year-to-date. The counter has given almost 500 per cent returns in the last 5 years on the BSE.

About Elecon Engineering

Headquartered in Gujarat, Elecon Engineering is an Indian multinational company, specialising in the manufacturing of industrial gear and material handling equipment. It is one of the largest Asian manufacturers of industrial gears and material handling equipment for core major sector like power, steel, cement, sugar, paper, mining, rubber and many more.