Microcap stocks soars 15% today; zooms 140% from February low

Eimco Elecon (India) share price

 

Shares of Eimco Elecon (India) hit an over eight-month high of ₹3,001.10, as they soared 15 per cent on the BSE in Friday’s intra-day trade. 

 

The stock price of this microcap company was trading at its highest level since October 17, 2024. The company, engaged in the business of manufacturing of equipment for the mining and construction sector, has zoomed 140 per cent from its 52-week low of ₹1,250 touched on February 19, 2025.  Eimco Elecon has a total 5.76 million outstanding shares as on March 31, 2025. The promoters held 73.64 per cent holding in the company, data shows. The company’s market capitalisation stood at around Rs 1,700 crore. 

 

Eimco Elecon - Future outlook

 

The long-term fundamentals of industry remain solid. Despite the increasing thrust on development of renewable energy sources, coal will continue to remain the bedrock for India’s energy matrix for the time being, given its domestic availability as an efficient fuel. While the contribution of underground (UG) mines to total Coal production is currently less than 4 per cent, the government has taken various positive steps to unlock the vast untapped potential of underground mining in India and increase the share of Underground Coal production to 10 per cent by 2030.

 

Battery operated vehicles for both coal and non-coal UG mines offer many operational advantages in underground mines and the company expects an increase in demand. The productivity and safety boosting solutions like the passenger carriers and the utility vehicles will also see increased demand. Presently, the company said they are working on launching suitable products soon to meet the demands in India.

 

The company’s management said they also foresee that customers will expect equipment with more automation and digitalization which enhances the overall mining efficiency, safety and minimizes environmental impact. 

 

The company said the outlook for the mining equipment industry is very positive for the next decade with India posing a big dream Viksit Bharat 2047. The outlook of construction equipment in India is also promising. Companies like Eimco Elecon investing in sustainable, smart, and localized production should have advantages.

 

Eimco Elecon, known for its mining and construction equipment, stands to benefit from India’s massive infrastructure initiatives, Urbanisation and Industrial Growth, Ports, Metros, Underground road network for Metro cities. These projects require advanced and reliable construction machinery, providing Eimco Elecon with a strong demand for its equipment, especially in sectors like road construction, metro rail, urban development, tunnelling, and Port development. Increased collaboration between the government and private sector will further fuel demand for construction machinery in various infrastructure projects, including roads, railways, and ports, Eimco Elecon said in its FY25 annual report.

 

The Indian construction equipment (CE) industry is expected to witness significant growth between FY 2025-2030, driven by government-led infrastructure projects, advancements in technology, and increasing demand for sustainable solutions. The Indian construction equipment market is projected to grow at a CAGR of 6-8 per cent during this period. The government’s National Infrastructure Pipeline (NIP) worth ₹143 trillion will ensure a steady demand for construction machinery.

 

Emico - Risk and Concerns

 

The main risk and concern of the company remains that it continues to depend more on growth of the Coal mining sector in India particularly UG Coal mining. The competition in the UG mining equipment sector also may increase in the coming days. The market is expected to move towards more advanced technology products which are being dominated by globally established players, and Eimco Elecon said they are gearing up its capabilities, the company said.