Ace investor Vijay Kedia-backed Elecon Engineering Company (EECL) shares touched a 14-year high of Rs 274.90 per share, rallying almost 6 per cent on the BSE on Wednesday. The stock was trading at its highest level since January 2008 aided by strong volumes.  

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The counter on Wednesday closed nearly 4 per cent higher to Rs 269.7 per share on the BSE as compared to a 1.35 per cent fall in the S&P BSE Sensex. It has surged 83 per cent in the last three months as compared to 11 per cent decline in the S&P BSE Sensex. 

EECL in its regulatory filing said that it has obtained the credit rating for bank facilities of Rs 500 crore of the company from the credit rating agency viz., ICRA Limited (ICRA). 

The ratings assigned factor in the leadership position of EECL in the transmission products segment i.e. gears with a sizeable market share of around 38 per cent in India, supported by significant manufacturing capacities, an expansive geographic presence, and an established presence in the material handling equipment segment (MHE). 

Additionally, EECL has developed a reasonable global footprint in recent years and its revenue mix is fairly diversified across geographies with international sales accounting for 35 per cent of the consolidated revenues in FY2022, ICRA said in rationale. 

The Stable outlook on the long-term rating reflects ICRA's opinion that EECL's revenues and accruals will be supported by its comfortable order book along with expectations of a healthy order inflow in the near to medium term. Also, the company will continue to benefit from its established track record in the transmission and the MHE segments, ICRA said. 

Vijay Kedia holds 1,339,713 equity shares, which aggregates to 1.2 per cent stakes in the company, as per the latest shareholding pattern of the company available on the BSE. The renowned investor holds 15 stocks with a net worth of over Rs 397.6 crore, according to trendlyne.com.