AI Summary
✦ ClarthaElecon Engineering is an industrial equipment manufacturer serving India and international markets. Transmission Equipment, including industrial, wind-turbine, marine, planetary, and custom gearboxes, drives core revenue. Material Handling Equipment adds stackers, reclaimers, crushers, loaders, wagon tipplers, and related systems. Revenue grew 6.4% year-on-year, but declining margins and a 17.8% profit contraction indicate weaker operating conversion. ROE is unavailable, preventing a return assessment; however, debt/equity of 11.82 implies substantial leverage and magnifies pressure on shareholder returns. The earnings decline despite revenue growth raises questions about pricing, costs, and execution across both segments. At 41.7 times earnings, the shares appear rich relative to current growth and profitability trends. Investor upside therefore depends on margin recovery, while leverage remains the primary structural risk.
Price Forecast
Probabilistic Range
Probabilistic lognormal cone using 1Y realized volatility and analyst-target drift when available.
Revenue Forecast
₹ CrEPS Forecast
₹ / shareMulti-factor synthesis of 5 key dimensions
From 2 analysts
Fundamentals
Fundamentals institutional score is 15 using growth durability 15.2.
Valuation
Valuation institutional score is 78 using relative multiple z-scores where peer dispersion is available.
Analyst Consensus
Analyst View institutional score is 71 using mean target upside 14.7%; dispersion penalty 7.9; recommendation breadth from available consensus.
Technical Structure
Technicals institutional score is 82 using EMA-20 continuation within 5% tolerance; VCP range/volume contraction proxy.
Market Sentiment
Recent news flow is balanced or not decisive enough to tilt the tape. Based on 4 recent ticker-linked news items.
Signal Summary
Market intelligence remains Neutral. valuation and analyst consensus provide support, while fundamentals and market sentiment remain considerations.
Composite weights: Fundamentals 25%, Valuation 20%, Analyst Consensus 20%, Technical Structure 20%, Market Sentiment 15%.
Key Data Points
Important Note: This is market intelligence, not investment advice. Always conduct your own research and consider your financial goals and risk tolerance.
Valuation Metrics
Trading 15.9% below historical median. Valuation is declining — currently in the strongly undervalued zone (z-score: -0.97). Confidence: 83%.
Live forward EPS implies next-12-month EPS of ₹23.50. Applying the stock's normalized valuation corridor produces a fair range of ₹992.17 to ₹1,298.14, with base value near ₹1,159.25 (+165.8% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹23.50
Forward P/E
18.6x
Base Fair Value
₹1,159.25
Fair Range
₹992.17 - ₹1,298.14
Upside To Base
+165.8%
Estimate Source
Live forward EPS
Growth Estimate
-59.8%
5Y Average
36.41
Current
41.49
Overvalued
55.24
Undervalued
42.22
5Y Average
18.26
Current
20.80
Overvalued
26.08
Undervalued
8.97
5Y Average
5.51
Current
4.24
Overvalued
6.29
Undervalued
4.66
Peers & Comparison
Sector: Industrials · Theme: Heavy Electrical Equipments
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
VOLTAMP TRANSFORMERS LTD VOLTAMPHeavy Electrical Equipments | +28.4% | 13.9% | 32.0x Undervalued | -43% vs avg | +28.8% |
TRIVENI TURBINE LIMITED TRITURBINEHeavy Electrical Equipments | +26.9% | 14.9% | 54.5x Fair | -3% vs avg | +23.4% |
TRANS & RECTI. LTD TARILHeavy Electrical Equipments | +8.1% | 10.1% | 34.4x Undervalued | -39% vs avg | -41.0% |
INOX WIND LIMITED INOXWINDHeavy Electrical Equipments | +5.5% | 7.8% | 29.8x Undervalued | -47% vs avg | -47.8% |
INOX GREEN ENERGY SER LTD INOXGREENHeavy Electrical Equipments | +80.0% | 40.8% | 66.6x Premium | +18% vs avg | +13.4% |
TD POWER SYSTEMS LTD. TDPOWERSYSHeavy Electrical Equipments | +69.2% | 12.9% | 83.6x Premium | +48% vs avg | +155.2% |
COCHIN SHIPYARD LIMITED COCHINSHIPShipbuilding | -15.6% | 14.3% | 55.6x Fair | -1% vs avg | -9.9% |
TITAGARH RAIL SYSTEMS LTD TITAGARHRail | -12.9% | 3.9% | 94.1x Premium | +67% vs avg | +5.0% |
ELECON ENG. CO. LTD trades at a discount (41.5x vs peer avg 56.3x), suggesting potential undervaluation relative to the Heavy Electrical Equipments cohort. Peers include VOLTAMP TRANSFORMERS LTD, TRIVENI TURBINE LIMITED, TRANS & RECTI. LTD — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹398 CrJun 2026Latest net profit
₹59 CrJun 2026Latest EPS
₹2.61Jun 2026Net margin
23.0%Jun 2026Performance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Earnings
Revenue is shown in crores. EPS is rupees per share.
- Revenue
- EPS
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Jun 2026
Debt level and coverage
Debt, cash and free cash flow compared on the same crore scale.
- Debt
- Free cash flow
- Cash & equivalents
Results
| Metric | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales + | 324 | 407 | 383 | 485 | 293 | 419 | 446 | 713 | 410 | 496 | 454 | 656 | 398 |
| Expenses + | 238 | 299 | 282 | 368 | 221 | 328 | 320 | 539 | 288 | 383 | 359 | 511 | 305 |
| Operating Profit | 87 | 108 | 101 | 118 | 73 | 91 | 127 | 174 | 122 | 113 | 95 | 144 | 93 |
| OPM % | 27% | 26% | 26% | 24% | 25% | 22% | 28% | 24% | 30% | 23% | 21% | 22% | 23% |
| Other Income + | 6 | 11 | 13 | 10 | 13 | 11 | 13 | 16 | 174 | 18 | 17 | 15 | 20 |
| Interest | 2 | 2 | 1 | 1 | 1 | 1 | 3 | 4 | 6 | 5 | 6 | 6 | 8 |
| Depreciation | 10 | 11 | 10 | 10 | 10 | 11 | 13 | 17 | 22 | 22 | 24 | 24 | 26 |
| Profit before tax | 81 | 106 | 102 | 116 | 74 | 89 | 124 | 169 | 269 | 104 | 82 | 130 | 79 |
| Tax % | 25% | 26% | 25% | 25% | 25% | 25% | 26% | 26% | 11% | 24% | 25% | 25% | 26% |
| Net Profit + | 61 | 79 | 76 | 87 | 55 | 67 | 92 | 125 | 239 | 79 | 62 | 97 | 59 |
| EPS in Rs | 2.71 | 3.52 | 3.40 | 3.87 | 2.46 | 2.99 | 4.10 | 5.59 | 10.65 | 3.52 | 2.76 | 4.32 | 2.61 |
| Raw PDF |
All values in ₹ Crores unless otherwise stated. Source: Screener Master (Standalone).
Events Timeline
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation