Eimco Elecon is a 50-year-old capital goods company supplying underground and opencast mining equipment. With 39% profit CAGR over 5 years, zero debt, and ROCE of 16%, it’s a rare PSU-adjacent value pick. But at 3.4x book and 30x PE, is it already discovered?
1. 🔥 Introduction with Hook
What’s 50 years old, debt-free, and making mining gear like it’s 1974? Eimco Elecon.
From Side Dump Loaders to Rocker Shovels, they’ve quietly built a ₹1,500 Cr company out of Gujarat. And while coal headlines focus on Coal India or PSUs, this humble player is:
Growing PAT at 39% CAGR (5Y)
Paying dividends
Rocking a ₹84 EPS
Trading at 30x earnings
…all while making mining machines in a world obsessed with EVs and AI. So is this an old-economy goldmine or a value trap in disguise?
2. ⚙️ WTF Do They Even Do?
Eimco Elecon manufactures and markets mining machinery — mostly for underground coal mining.
Revenue Sources:
✅ Underground Coal Equipment (~89% of revenue)
Side Dump Loaders
Load Haul Dumpers
Jumbo Drill Machines
Haulers & Wheeled Loaders
✅ Spare parts & servicing – High-margin annuity biz
✅ Opencast mine machinery (limited share)
They’re basically the BEML for private coal players — minus the PSU drama.
