Name: Latest research reports of Elecon Engineering Company Ltd. authored by Karvy and published by - Trendlyne research reports.
Item: Elecon Engineering Company Ltd.
Rating: 5
Author: Karvy

Elecon Engineering Company Ltd: Growth Aided by Domestic Recovery (Nov 02, 2015)

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Karvy

Rebound in core sector CapEx cycle coupled with adequate capacity headroom may augur well for transmission equipment segment: Growth in investment activities and increased investments in key sectors like power, steel, sugar and cement are giving an optimistic outlook for future. We believe the GFCF to GDP to improve by over 33% by FY17E resulting in increased activity in domestic transmission equipment segment, also EECL's current capacity utilization levels of ~ 45% leaves enough headroom to sustain the anticipated increase in demand. We expect the segment to grow at 11.9% CAGR for FY15-17E.