Eimco Elecon (India) shares have been on a consistent upward trend, reaching a new high of Rs 1,325, marking a 6% increase on the BSE during Friday's intraday trading session. This growth stands out in a generally weak market, and it can be attributed to the company securing an order valued at Rs 38.96 crore for the supply of coal mining equipment. Notably, the stock of this industrial products company has been on the rise for eight consecutive days, surging by 51% during this period. In contrast, the S&P BSE Sensex was down 0.56%, standing at 66,034 at 11:33 AM.

In the calendar year 2023 thus far, Eimco Elecon's stock price has witnessed a remarkable increase of 236%, in stark contrast to the modest 8% rise in the S&P BSE Sensex.

In an official exchange filing, Eimco Elecon reported that it has secured an order worth Rs 38.96 crore (excluding GST) from JMS Mining Private Limited for the supply of coal mining equipment. The company is expected to fulfill this order by January 27, 2026. Last month, on September 29, the company had also announced that it had been awarded an order worth Rs 60.87 crore by Indradeep Construction Company for the supply of coal mining equipment, with a delivery deadline set for December 2024.

Eimco Elecon is a joint venture between the Elecon group and Sandvik AB, a globally renowned manufacturer of rock-drilling tools and mining equipment. The company produces a diverse range of mining machinery, including air-powered rocker shovels, electro-hydraulic side-dump loaders, and electro-hydraulic and air-powered load-haul dumpers, which are used as loading machines in coal mines. Its manufacturing facilities are located in Vallabh Vidyanagar, Gujarat.

Eimco Elecon enjoys a near monopoly in the underground coal mining equipment sector in India, supported by a robust market share and an extensive after-sales service network. Long-standing partnerships with Coal India (CIL) and The Singareni Collieries Company Ltd. (SCCL) further reinforce its leadership position in this segment. The company's management notes that the demand for its equipment is closely linked to the expansion of underground coal mining. While growth in underground production had been stagnant due to the high cost of mining, the adoption of blast-free technology is expected to open up new opportunities for the company. Additionally, the introduction of high-capacity underground loaders for metal mines is anticipated to boost the company's revenues.

Looking ahead in the underground mining sector, there is an increasing demand for equipment that caters to blast-free technology in underground coal mines, as well as larger loaders and low-profile dump trucks for metal mines such as Zinc, Copper, and Uranium. The rise of the mine development operator (MDO) mode of mining has been particularly noteworthy, with subcontracting of mine operations playing a significant role in the coal industry for over two decades. This approach has brought about substantial financial and operational efficiencies for Coal India, resulting in a consistent increase in overall coal production in CIL and SCCL. Furthermore, production from blast-free technology in underground coal mining has steadily risen, with several tenders finalized or in the pipeline by the subsidiaries of CIL, as reported in Eimco Elecon's FY23 annual report.

Regarding the future outlook, Eimco Elecon observes that the Government of India has made infrastructure development a key pillar for sustainable growth. Initiatives like 'Make in India' have encouraged both domestic and international players to invest in the Infrastructure Equipment Industry. Eimco Elecon is also actively participating by manufacturing Piling Rigs, which are high-end engineering products used for cast-in-place piles, diaphragm walls, and building foundation reinforcement. These machines are expected to find applications in various major infrastructure projects, including road and railway overpasses, high-rise buildings, dams, metros, and other infrastructure structures. One of the company's recent products, the EC 216 Piling Rig, represents the first completely indigenized Piling Rig made in India under 'Make in India,' in technical collaboration with CZM from the USA. It has been well-received in the Indian market due to its superior performance compared to competitors.

Eimco Elecon intends to expand its range of Piling Rigs in the upcoming financial year, thereby increasing the variety of products offered to Indian buyers.