Elecon Engineering share price: The stock jumped 12.80 per cent to hit their one-year high of Rs 1,197.55. The stock saw heavy trading volume today.
Elecon Engineering share price: As of March 2024, Vijay Kishanlal Kedia owned 1.34 per cent stake in this small-cap firm.
Shares of Elecon Engineering Ltd on Friday jumped 12.80 per cent to hit their one-year high of Rs 1,197.55. The stock saw heavy trading volume today as around 2.08 lakh shares changed hands at the time of writing this story. The figure was way more than the two-week average volume of 27,000 shares. Turnover on the counter stood at Rs 23.42 crore, commanding a market capitalisation (m-cap) of Rs 13,068.49 crore.
As of March 2024, Vijay Kishanlal Kedia owned 1.34 per cent stake in this small-cap firm. Bourses BSE and NSE have put the securities of Elecon Engineering under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
Here are the key reasons behind today’s jump:
1) Quarterly earnings
Elecon’s consolidated net profit for the fourth-quarter (Q4 FY24) came at Rs 103.65 crore, up 52.56 per cent from Rs 67.94 crore in the same period last year. The company’s revenue from operations rose 33 per cent to Rs 564.62 crore in Q4 FY24 from Rs 424.54 crore in Q4 FY23.
Prayasvin B Patel, Chairman & Managing Director of Elecon, said, “We are delighted to share that Elecon has delivered its highest-ever revenues of Rs 1,937 crore, up by 27 per cent YoY and highest-ever PAT (profit after tax) of Rs 356 crore indicating a growth of 50 per cent YoY for FY24 which is a testament to our commitment to innovation and customer needs.”
2) Dividend
The company has proposed a final dividend of Rs 2 per equity share, subject to shareholders approval.
3) Stock split
Elecon has also proposed stock split from Rs 2 per share to Re 1 apiece.
In addition, the company mentioned that it has successfully signed-off 11 OEM business in overseas market having annual estimated business volume of Euro 6 million. Commercial production expected to start from FY25, it added.
“We have successfully realized Rs 37.2 crore from the arbitration award, out of the total award amount of Rs 63 crore. Fresh arbitration proceedings initiated having the value of Rs 31 crore during Q1 FY24, optimistic of favorable outcomes,” Elecon stated.
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