Eimco Elecon: Shares rise…
Eimco Elecon (India) Ltd, which manufactures heavy machinery, has recently made a big splash in the stock market. A sudden tremendous rise was seen in the shares of this company, due to which the eyes of investors are again focused on it. The special thing is that prominent investor Vijay Kedia has a big hand in this rise. Kedia bought 57,400 shares of the company at a price of about Rs 11 crore, leading to a 15 percent increase in the share price on Wednesday.
Vijay Kedia’s investment created a stir
Vijay Kedia, who is counted among the veteran investors of the stock market, has invested a large amount in Eimco Elecon. According to Trendline data, his company Kedia Securities Private Limited made this purchase at around Rs 1906 per share, which was about 4.4 percent more than the market closing price. The very next day of investment, the company’s shares showed a rise of 5 percent and closed at around Rs 1917. After which today the share again saw a rise of more than 15% and the share crossed the level of Rs 2000 and reached Rs 2241.25.
Company’s business and recent performance
Eimco Elecon is a machinery manufacturing company, which especially makes machines for underground and opencast mines. The company has registered a net profit of Rs 14.48 crore in the June quarter, which is slightly less than the previous quarter. The company’s revenue was Rs 67.56 crore, which has decreased by 3 percent on an annual basis, but an increase of 5 percent has also been recorded on a quarterly basis.
Last year’s performance of the stock
However, the company’s shares have fallen by about 22 percent in the last one year. But in the last three years, this stock has given a tremendous return of 488 percent, which proves it to be a multibagger. Currently the market cap of the company is approximately Rs 1,269.36 crore. Talking about short term, the stock has shown a growth of 20% in the last 1 week.
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