This presentation was delivered on Feb 15, 2014 to Equity Pune group. In this presentation I discussed about an undervalued stock: Eimco Elecon. Eimco Elecon is a leading, profit making and established manufacturer of various Mining equipment. It is a zero debt company available at a Market Cap of just Rs92Cr (CMP INR 160). More importantly it has an investments of INR 60.42Crs in high grade shares and mutual funds. So effective market cap is just INR 32Crs i.e. INR 55 per share. Besides Net Current Asset per share is INR 154 and book value of INR 295. It is like company paying us to acquire its shares. Some additional highlights include consistency in operating and free cash flow, dividend yield of 2.5% (paying dividend for last several years), ROCE in double digits during last 6 years, and high promoters at 74% stake including 25% by Sandvik group. Also HDFC holding 4.79% for last several years. The key negatives are slowdown in mining and construction industries and overall economy & equipment industry and the stock is an illiquid/low volume stock. Enjoyed the discussions with the group.

1. 15 February 2014
Eimco Elecon
Quality is a way of life
The Power of Quality Undervalued Stock
A presentation by: Niteen S Dharmawat
at Equity Pune gathering…
Blog: http://dharmawat.blogspot.com/
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2. Recap…
& some updates…
Discussed it in one of the last meetings… and we are dot on….
Blog: http://dharmawat.blogspot.com/
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3. Kabir Das
(Indian poet, mystic, philosopher, and one of the Northern India Saints.)
Blog: http://dharmawat.blogspot.com/
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4. About Eimco Elecon
Background…
Blog: http://dharmawat.blogspot.com/
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5. Kabir Das
(Indian poet, mystic, philosopher, and one of the Northern India Saints.)
Blog: http://dharmawat.blogspot.com/
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6. Financials
Summary…
Blog: http://dharmawat.blogspot.com/
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7. Financials
Summary…
Blog: http://dharmawat.blogspot.com/
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8. Blog: http://dharmawat.blogspot.com/
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9. Eimco Elecon
Net Profit (NP) V/S Operating Cash Flow (OCF)…
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10. Eimco Elecon
Shareholding Pattern (SHP)…
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11. Price chart…
Summary…
HDFC entered somewhere here
& continue to hold 4.79%….
Blog: http://dharmawat.blogspot.com/
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12. Key Clients…
Stability in the order book…
60% revenue
from Spares
And other valued customers in India & abroad.
Blog: http://dharmawat.blogspot.com/
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13. Construction Equipment
a wide range of underground mining machinary & construction equipments…
Side Dump Loader
Blog: http://dharmawat.blogspot.com/
Source: company website
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14. Construction Equipment
a wide range of underground mining machinary & construction equipments…
Side Dump Loader
Blog: http://dharmawat.blogspot.com/
Source: company website
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15. Coal Mining Application Equipment
a wide range of underground mining machinary & construction equipments…
Load Haul Dumper
Blog: http://dharmawat.blogspot.com/
Source: company website
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16. Coal Mining Application Equipment
a wide range of underground mining machinary & construction equipments…
Load Haul Dumper (Low Height)
Blog: http://dharmawat.blogspot.com/
Source: company website
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17. Coal Mining Application Equipment
a wide range of underground mining machinary & construction equipments…
Load Haul Dumper
Blog: http://dharmawat.blogspot.com/
Source: company website
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18. Coal Mining Application Equipment
a wide range of underground mining machinary & construction equipments…
Coal Hauler
Blog: http://dharmawat.blogspot.com/
Source: company website
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19. Coal Mining Application Equipment
a wide range of underground mining machinary & construction equipments…
Universal Drill Machine
Blog: http://dharmawat.blogspot.com/
Source: company website
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20. Coal Mining Application Equipment
a wide range of underground mining machinary & construction equipments…
Universal Drill Machine (Low Height)
Blog: http://dharmawat.blogspot.com/
Source: company website
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21. Metal Mining Application Equipment
a wide range of underground mining machinary & construction equipments…
Low Profile Dump Truck
Blog: http://dharmawat.blogspot.com/
Source: company website
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22. Metal Mining Application Equipment
a wide range of underground mining machinary & construction equipments…
Rocker Shovel Loader
Blog: http://dharmawat.blogspot.com/
Source: company website
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23. Metal Mining Application Equipment
a wide range of underground mining machinary & construction equipments…
Rocker Shovel Loader
Blog: http://dharmawat.blogspot.com/
Source: company website
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24. Metal Mining Application Equipment
a wide range of underground mining machinary & construction equipments…
Hopper Loader
Blog: http://dharmawat.blogspot.com/
Source: company website
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25. Metal Mining/Construction Application Equipment
a wide range of underground mining machinary & construction equipments…
Articulated Wheel Loader
Blog: http://dharmawat.blogspot.com/
Source: company website
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26. Metal Mining/Construction Application Equipment
a wide range of underground mining machinary & construction equipments…
Articulated Wheel Loader
Blog: http://dharmawat.blogspot.com/
Source: company website
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27. Chair Lift Man Riding System for underground mines
a wide range of underground mining machinary & construction equipments…
Blog: http://dharmawat.blogspot.com/
Source: company website
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28. Product Portfolio
a wide range of underground mining machinary & construction equipments…
ISO 9001:2008
ISO 14001:2004
Blog: http://dharmawat.blogspot.com/
BS OHSAS 18001:2007
EHS Policy
Source: company website
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29. Kabir Das
(Indian poet, mystic, philosopher, and one of the Northern India Saints.)
Blog: http://dharmawat.blogspot.com/
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30. What to expect…
Future holds promosing…
Blog: http://dharmawat.blogspot.com/
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31. Risks and Mitigation
Blog: http://dharmawat.blogspot.com/
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32. About the presenter:
Niteen is an MBA and cleared CFA Level 2, CFA Institute USA.
A firm believer in long-term financial planning, and a 20
years veteran of the stock market, he likes to analyse the
economy, and individual stocks. He also conducts investor
education sessions.
He likes reading books/magazines/news papers on the
topics as diverse as general management, technology,
investment, fiction, marketing and the Gita.
He is a person who believes in "Everything else can stop but
learning".
Blog: http://dharmawat.blogspot.com/
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33. IMPORTANT DISCLAIMER: Investment in equity shares has
its own risks. Sincere efforts have been made to present the
right investment perspective. The information contained
herein is based on analysis and up on sources that I consider
reliable. I, however, do not vouch for the accuracy or the
completeness thereof. This material is for personal
information and I am not responsible for any loss incurred
based upon it & take no responsibility whatsoever for any
financial profits or loss which may arise from the
recommendations above. I sincerely request you to do your
homework before you take any position whatsoever. I, my
relatives or friends may have/have positions in the stocks
discussed here.
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34. Blog: http://dharmawat.blogspot.com/
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35. Thank you
Email: niteen.dharmawat@gmail.com
Mobile: 9850571857
Blog: http://dharmawat.blogspot.com/
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