Shares of Eimco Elecon soared 12.5% in early trade to an intraday high of Rs 2,157.50 on the BSE on Wednesday, October 8, after ace investor Vijay Kedia acquired a stake worth Rs 11 crore in the Gujarat-based company via a bulk deal.
Over 57,400 shares were bought by his investment firm, Kedia Securities Private Ltd, at Rs 1906.71 apiece, representing a 4.4% premium over the previous day’s closing price of Rs 1825.55 on the BSE.
Following the purchase, the stock surged 5% and closed at Rs 1,917.50.
Eimco Elecon is engaged in the business of manufacturing and marketing mining equipment for underground and opencast mines. Founded in 1974 and listed since 1992, the company operates from a 15-acre facility located in Vallabh Vidyanagar, Anand, Gujarat.
Kedia’s investment comes after a significant correction in the stock over the past year, with prices down 34% year-on-year and 77% off its 52-week high of Rs 3394.75. The move is being viewed as a case of dip buying.
Despite recent weakness, the stock has delivered a return of 426% over the past three years, substantially outperforming broader market indices such as the Nifty and BSE Sensex, which rose 45% and 41%, respectively, in the same period.
According to Trendlyne data, Eimco Elecon shares are currently trading below their 50-day and 200-day simple moving averages of Rs 2148 and Rs 2003, respectively. The stock has been volatile, with a one-year beta of 1.4.
For the June quarter, the company reported a net profit of Rs 14.48 crore, slightly lower than Rs 14.87 crore in Q4FY25 and Rs 14.78 crore in Q1FY25. Revenue for the reported quarter stood at Rs 67.56 crore, compared to Rs 64.28 crore in Q4FY25 and Rs 69.72 crore in Q1FY25. Sequentially, the topline rose 5% but declined 3% on a year-on-year basis.
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