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Elecon Engineering Shines in Weak Market, Shares Surge 16% in 5 Sessions: What's Driving It?
M
Moneycontrol•28-09-2026, 13:34
Elecon Engineering Shines in Weak Market, Shares Surge 16% in 5 Sessions: What's Driving It?
- •Elecon Engineering shares surged 7% intraday despite heavy market selling on Monday, September 28.
- •The stock has gained over 16% in the last 5 trading sessions amidst overall market weakness.
- •Axis Securities issued a 'Buy' rating on Elecon Engineering with a target price of Rs 505, a 10% upside from CMP.
- •Brokerage cited strong order book, robust order acquisition, improving exports, and gear division growth as key drivers.
- •Elecon achieved a record consolidated order book of ₹1,518 crore, with Q1 FY27 order inflow up 23% YoY to ₹755 crore.
Key Questions Answered
Axis Securities has given a 'Buy' rating on Elecon Engineering shares with a target price of Rs 505 per share, representing about a 10% premium over the current market price, and named it the 'Pick of the Week' due to strong order books and improving exports.
The gear division grew its Q1 FY27 revenue by 16% year-on-year to ₹416 crore, driven by strong demand for higher-value engineered and customized products which accounted for roughly 73% of quarterly order intake.
Foreign revenue grew by 21.9% year-on-year to ₹151 crore, raising its share of consolidated revenue from 25% to 29%, backed by European subsidiary recovery, global demand, and international orders like a ₹21 crore port equipment contract.
