Elecon Engineering Company Intrinsic Value

ELECON • Capital Goods
Current Stock Price
₹503.35
Primary Intrinsic Value
₹187.68
Market Cap
₹1107 Cr
+72.5% Upside
Median Value
₹868.36
Value Range
₹151 - ₹1258
Assessment
Trading Below Calculated Value
Safety Margin
42.0%

ELECON Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹187.68 ₹150.14 - ₹225.22 -62.7% EPS: ₹15.64, Sector P/E: 12x
Book Value Method asset ₹908.64 ₹817.78 - ₹999.50 +80.5% Book Value/Share: ₹908.64, P/B: 1.0x
Revenue Multiple Method revenue ₹868.36 ₹781.52 - ₹955.20 +72.5% Revenue/Share: ₹1085.45, P/S: 0.8x
EBITDA Multiple Method earnings ₹1006.70 ₹906.03 - ₹1107.37 +100.0% EBITDA: ₹576.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹1258.38 ₹1006.70 - ₹1510.06 +150.0% CF Growth: 14.9%, Discount: 15%
PEG Ratio Method growth ₹151.00 ₹135.90 - ₹166.10 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹151.00 ₹135.90 - ₹166.10 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹1006.70 ₹906.03 - ₹1107.37 +100.0% ROE: 17.6%, P/E Multiple: 14x
Graham Defensive Method conservative ₹565.46 ₹508.91 - ₹622.01 +12.3% EPS: ₹15.64, BVPS: ₹908.64
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check ELECON share price latest .

Valuation Comparison Chart

ELECON Intrinsic Value Analysis

What is the intrinsic value of ELECON?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Elecon Engineering Company (ELECON) is ₹868.36 (median value). With the current market price of ₹503.35, this represents a +72.5% variance from our estimated fair value.

The valuation range spans from ₹151.00 to ₹1258.38, indicating ₹151.00 - ₹1258.38.

Is ELECON undervalued or overvalued?

Based on our multi-method analysis, Elecon Engineering Company (ELECON) appears to be trading below calculated value by approximately 72.5%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 8.74 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.37 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 17.6% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 22.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.87x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹432 Cr ₹274 Cr Positive Free Cash Flow 8/10
March 2024 ₹365 Cr ₹226 Cr Positive Free Cash Flow 8/10
March 2023 ₹309 Cr ₹226 Cr Positive Free Cash Flow 8/10
March 2022 ₹223 Cr ₹223 Cr Positive Free Cash Flow 8/10
March 2021 ₹248 Cr ₹239 Cr Positive Free Cash Flow 8/10