Short term swing trade (A): Capital Goods stock | Indian stock trading tips on 5 May 2026

NOTE

Closing Price: ₹525 (as of May 04, 2026)
StopLoss*: Apply on the daily close. After the first target, reset the StopLoss to your buying price.
Duration^: Approximate holding period based on the active trading days (excluding market holidays). Actual holding may vary with the market conditions.
Upside Potential#: Based on median of the suggested buy range.

Elecon Engineering Company Limited is an Indian company that manufactures industrial gearboxes and material handling equipment. It operates mainly in two segments, transmission equipment and material handling systems, serving industries like cement, steel, mining, and power. The company also provides repair and maintenance services and runs a foundry business. Founded in 1951, it is based in Vallabh Vidya Nagar, India.

Website: https://www.elecon.com/

Q3 FY26 Earnings Call Summary & Financial Highlights

Earnings Call Summary

Core demand remains strong, but execution delays impacted revenue recognition, pushing some earnings into future quarters.
Performance was mixed across segments, with Material Handling Equipment showing strong growth while the Gear division remained under pressure due to weaker industrial capex.
Profitability declined mainly due to one-off or non-recurring factors, not a deterioration in core operations.
Order book remains healthy, providing good visibility and supporting expectations of improved execution ahead.
Management stays cautiously optimistic, with recovery in global demand and industrial activity expected to drive growth in the coming periods.

Financial Highlights

KPI	March FY26	Dec FY25	QoQ Change	March FY25	YoY Change
Revenue (₹ Cr)	746	552	35.10%	798	-6.50%
EBITDA (₹ Cr)	158	128	23.40%	195	-19.00%
EBITDA Margin (%)	21.20%	23.20%	-200 bps	24.5%	-330 bps
Net Profit (₹ Cr)	108	72	50.00%	146	-26.00%
EPS (₹)	0.27	3.2	-91.60%	6.53	-95.90%
Order Book (₹ Cr)	~2,300+	~2,200	+4–5%	~2,000+	+15%+

Price Performance & Volume Analysis

Price Performance

Volume Analysis

Technical Analysis

Key Observations

The stock has broken above its long-term trendline resistance and is sustaining above it.
If momentum builds from here, a potential upward move could follow.

With guidance from a reliable swing trading stock advisor India, traders gain clarity on when momentum is turning in their favor.

Technical Image - Daily Timeframe

Technical Indicators

Oscillators

Indicator	Value	Zone
RSI-14	71.59	Overbought
CCI-14	98.182	Neutral
ROC	25.304	Positive
Stochastic %K	78.297	Neutral
William %R	-2.379	Overbought

Exponential Moving Averages (EMAs)

EMA	Value	Stock Position
5 DEMA	506.177	Above
10 DEMA	488.399	Above
20 DEMA	462.361	Above
50 DEMA	438.34	Above
100 DEMA	450.024	Above
200 DEMA	481.266	Above

Conclusion

Elecon Engineering Stock Price Forecast

Based on our stock market swing trading advice, the Elecon Engineering stock price target will be INR 550 - INR 560 in the next 12-14 trading sessions.

MONEY MANAGEMENT AND TRADING RULES

Buy within the recommended price range. You may allow up to 1% flexibility beyond the range if needed.
No need to rush. The recommendation remains valid for up to 7 days, not just at market open.
Use a trailing stop-loss to protect and lock in profits.
Diversify your trading capital across our other recommended stocks to reduce risk.
Invest responsibly. Trade only with funds you can afford to lose and hedge positions where appropriate.

Analyst Summary

The research analysis is prepared by Arijit Banerjee, CMT, CFTe. He is a veteran trader and an active investor having in-depth knowledge in financial market research, advanced technical analysis, market cycle, algorithmic trading and portfolio management. Arijit is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts, USA. SEBI, the regulatory body of Indian financial market also recognizes him as a Research Analyst (INH300006582).

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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