Vijay Kedia buys on dips, acquires Rs 11 crore stake in smallcap company via bulk deal

Synopsis

Investor Vijay Kedia acquired a Rs 11 crore stake in Eimco Elecon, buying 57,400 shares at Rs 1,906.71 each. The stock, down 34% in a year, surged 5% post-purchase.

Marquee investor Vijay Kedia picked up stake worth Rs 11 crore in Gujarat-based Eimco Elecon (India) on Tuesday via a bulk deal. Over 57,400 shares were bought by his investment company Kedia Securities Private Ltd at a price of Rs 1906.71 apiece.

The purchase price was 4.4% higher from the Monday closing price of Rs 1,825.55 on the BSE. Today the stock surged 5% and ended at Rs 1,917.50.

Eimco Elecon (India) is in business of manufacturing and marketing equipment for underground and opencast mines. It was incorporated in 1974 and went public in 1992. Situated at Vallabh Vidyanagar, Anand, Gujarat, the company is spread over a stretch of 15 acres.

Kedia's stake purchase comes following a significant correction in the stock, indicating a dip buying. The share price has eroded 34% in the past one year and is currently down 77% from its 52-week peak of Rs 3,394.75.

The stock is a multibagger with returns of 426% over a 3-year period, significantly outperforming benchmark indices Nifty and the BSE Sensex whose returns stand at 45% and 41%, respectively in the same period.

Shares of Eimco Elecon are currently trading below their 50-day and 200-day simple moving averages (SMAs) of Rs 2,148 and Rs 2,003, respectively, according to Trendlyne data.

The stock has been quite volatile, recording a 1-year beta of 1.4, the Trendlyne data revealed.

The company reported a net profit of Rs 14.48 crore in the June ended quarter which was down from Rs 14.87 crore in Q4FY25 and Rs 14.78 crore in Q1FY25. The revenue in the reported quarter stood at Rs 67.56 crore versus Rs 64.28 crore in Q4FY25 and Rs 69.72 crore in Q1FY25. The topline increased 5% sequentially in Q1FY26 while falling 3% on an year-on-year basis.

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