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Eimco Elecon share price surged 20% after ace investor Vijay Kedia purchased shares worth nearly ₹11 crore.
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The company’s stock has rallied over 619% in the last five years, showing strong long-term performance.
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Eimco Elecon manufactures mining and construction equipment and holds a strong market position with 74% promoter ownership.
Eimco Elecon Share Price Surges 20% After Vijay Kedia’s Stake Purchase
The Eimco Elecon share price jumped 20% on October 8 to hit the upper circuit limit after well-known investor Vijay Kedia made a major investment in the company. According to NSE data, Kedia’s investment firm, Kedia Securities, bought 57,441 shares at an average price of ₹1,906.71 each, worth nearly ₹11 crore.
This significant purchase by Vijay Kedia has sparked excitement among retail investors and traders, who see it as a strong vote of confidence in the company’s long-term potential. Following the news, Eimco Elecon’s market capitalization rose to about ₹1,327 crore.
The sharp rise in Eimco Elecon share price also reflects renewed investor interest in engineering and manufacturing firms that have solid fundamentals and limited public float.
Vijay Kedia Invests ₹11 Crore in Eimco Elecon
Ace investor Vijay Kedia, known for identifying small and mid-cap multibagger stocks, made headlines once again with his latest bet on Eimco Elecon. His investment through Kedia Securities was disclosed in bulk deal data published by the National Stock Exchange (NSE).
Market analysts believe that when an experienced investor like Vijay Kedia enters a company, it often acts as a catalyst for broader investor interest. His track record of picking potential winners has built significant credibility in the Indian stock market.
Many retail investors interpret Kedia’s move as a signal of confidence in Eimco Elecon’s growth prospects, especially since the company operates in the niche sector of mining and construction equipment manufacturing.
Eimco Elecon Share Price History Shows Strong Long-Term Growth
Over the past few years, the Eimco Elecon share price has delivered exceptional returns to long-term investors. The stock has surged more than 619% in the last five years, demonstrating the company’s consistent business growth and investor confidence.
In the last six months, the stock climbed 58%, while in the past five days alone, it gained 32%. This impressive rally has been supported by improving fundamentals and positive market sentiment in the infrastructure and industrial machinery sectors.
However, the journey hasn’t been without volatility. After touching a 52-week high of ₹3,395.05 per share in October last year, the stock fell nearly 62% to reach a 52-week low of ₹1,301 per share in April this year. Since then, it has rebounded by 77%, now trading around ₹2,301 per share.
This recovery indicates growing confidence in the company’s ability to sustain earnings and expand in India’s infrastructure-driven economy.
Eimco Elecon Share Price Reflects Limited Free Float and High Promoter Holding
Another key factor driving the Eimco Elecon share price is its shareholding pattern. As per the June quarter data, promoters and the promoter group hold 74% of the company’s total shares. The remaining 26% is held by public investors.
This means that only a small portion of shares — worth about ₹341 crore in market value — are available for trading in the open market. Such low free float often leads to sharp price movements when there is sudden buying interest, as seen after Vijay Kedia’s stake purchase.
The stock’s price-to-earnings (P/E) ratio of 23 indicates that it is reasonably valued compared to industry standards, especially for a company in the mining and construction machinery sector.
Vijay Kedia’s Investment Sparks Optimism Among Retail Investors
The entry of Vijay Kedia into Eimco Elecon has created optimism among retail investors and traders. Historically, Kedia’s investments have brought attention to lesser-known companies that later became multibaggers.
For example, his past investments in companies like Tejas Networks and Atul Auto yielded high returns over time. Investors now expect Eimco Elecon to follow a similar path, given its strong product lineup, experienced management, and growing demand in India’s mining and infrastructure sectors.
Stock market experts believe this move could attract institutional investors too, further improving liquidity and visibility for the company.
Eimco Elecon: A Pioneer in Mining Equipment Manufacturing
The Eimco Elecon share price is backed by a company with a solid industrial legacy. Established in 1974 and headquartered in Gujarat, Eimco Elecon (India) Limited is one of India’s oldest and most trusted manufacturers of mining and construction machinery.
The company went public in 1992 and has been known for introducing innovative equipment like Side Dump Loaders (SDLs), Load Haul Dumpers (LHDs), and Rocker Shovel Loaders. These technologies helped mechanize underground coal and metal mining operations in India, making Eimco Elecon a pioneer in its field.
With increasing government focus on domestic mining, infrastructure projects, and industrial modernization, demand for advanced machinery from companies like Eimco Elecon is expected to rise.
Eimco Elecon Share Price Outlook: What’s Next?
Market analysts suggest that the Eimco Elecon share price could continue to see short-term volatility due to its low float and recent spike. However, the long-term outlook remains positive, especially if the company continues to grow profitably and expand its domestic and export presence.
Experts advise investors to track quarterly earnings and new order inflows closely. With Vijay Kedia’s investment acting as a sentiment booster, the stock may attract further institutional attention in the near future.
Conclusion
The Eimco Elecon share price hitting the 20% upper circuit after Vijay Kedia’s ₹11 crore investment reflects renewed confidence in the company’s fundamentals and growth story. Backed by a rich industrial history, solid promoter support, and strong business demand, Eimco Elecon appears well-positioned for long-term growth in India’s booming mining and infrastructure sectors.
While the stock’s rally has been sharp, investors are advised to exercise caution and consider their risk appetite before making fresh entries. Nonetheless, Vijay Kedia’s move has undeniably put Eimco Elecon back in the spotlight.
