All is well.
Elecon is a portfolio company to be held for next several years.
Don’t expect crazy moves but it should consistently grow.
I feel Q1 will be slow and may provide opportunity to add more for long term collectors.
Company has guided 15% but I feel will deliver higher.
Also, the stock split will generate more liquidity and movement.
Company is showing cash of 263 Crs, is this unencumbered or margin money?
Why do you think that double digit growth is only for two years?it will help if you can explain about the longevity of business.i was of the opinion (solely assumption) that this company has strong chance of more than 15%cagr for next five years atleast considering the diversity of the sectors it’ is present.Also management is known to give conservative guidance in past and not overpromise…
Bias…have tracking position
Elecon provides solution to companies which are cyclical in nature steel, cement , capital goods. Growth can be very high for a couple of years followed by low growth / over capacity into these sectors. We are currently in the cycle of high growth it may last for 2-3-5 years or more no one knows. 2 years visibility is something one can have from economy perspective . With time going by further clarity will emerge. For me frankly since first buy @150 elecon has suprised quarter on quarter since last 3 years I did add post good results around 200 & topped up @370
.I continue to scout for better opportunity and may exit / trim / hold basis situation demands. Currently among top 3 holding for me
Management is fully aware of the cyclicality nature of the industries they work with and hence have opened up the export doors and signed with 11 OEM’s in a short span of time. They know once recession or slowdown sets in next 2-3 years in domestic market, they want to cover up the loss from international markets and be fully ready for it.
This is what smart promoters do. Under promise and over deliver.
Invested from 142Rs. No plans to exit yet.
Would like to add to this, as per the management one shouldn’t expect the same growth rate to continue in the next 6-9 months, this was anticipated due to the nature of the business, and lokh sabha elections.
