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So welcome back to my channel Short Trade. Before we proceed further, I request you to subscribe because you get this kind of information on this channel on a daily basis. Look at the stock that I have brought for you today. Although I would tell you not to go by the stock price, but still, it is a small one, its price is not very high.
And the name of a big investor is associated with this company. Now, just because a big investor's name is associated with it, it does not mean that you should buy it blindly. The investor I am talking about has suffered huge losses in the last few months. But the point is the same. If there is a rise in the market, then there will be a fall too.
If you are buying any stock that is rising, then it will also fall. And if you were to specifically hold small-cap stocks, then they are very risky, that is why you have to go with a limited amount according to your risk capacity. Now, if you have this stock or have heard the name of this stock before, then let us know in the comments.
Its name is Alco Engineering 417. The stock price is around Rs. 1000. Today the stock is falling. If you look at the stock in the last one month, it has fallen to Rs. 21 and in the last 6 months the same stock has broken to Rs. 32 and if you look at the last one year, the stock has given a negative return of Rs.
11. Meaning, what you are seeing directly is that brother, there is a down trend in the stock since the last one year and as always I will tell you one thing, if you are going for short term or mid term, then definitely follow the trend. Let's see the market situation is like this but are we seeing any support at this level because you must be seeing here also at the level where the stock is right now, before today, it had taken support at this level in around March 2024.
After March 2024, in Feb 2025, exactly after 11 months, the stock is again seen taking support at this level but will this support level actually work or not? Plus, there is a news in this that I am going to share with you, watch it in this video or in any video, I will talk to you on any When I discuss stocks, it's my personal opinion, or the information I share with you is available on the internet and in the public domain.
So, you can do your own research. You should consult your financial advisor before investing in any stock, only after that you should invest in the stock. Otherwise, you should do your own research. If you don't understand anything, please leave me a comment. I will reply to every comment. Whatever doubt you have, I will try my best to help you.
Let me show you what the news is and the latest update. I am not going to share any old one. This is an article from Hindustan. First, let me show you the date. You will see, this is 28 Feb and this morning, that is, this morning's article. What is it? Let me show you Vijay Kidiya has 24 lakh shares of this company.
It is currently trading cheap at 39. The price is your stake. Which stock are we talking about? Let me first read the name of this stock here. After that, we will discuss further. Elcan Engineering shares. Amidst the continuous decline in the stock, Elcan The shares of EK are in the news these days and everything about the fall in this stock has been told here.
The veteran investor of the market Vijay Kidiya also has a big stake in this company. I am not saying this on my own behalf, all the data is available on the internet, you can see it yourself. I will just share my opinion and some things which we should also understand from the basic point of view, how much stake does Vijay Kidiya have here, it is told here that the value of his current holding is 110.in 418, which is quite down from its high and its 52 week low is 395, so we are seeing the price of the stock around its 52 week low, the market cap is 9819 crores.
Elco Company Limited which is an Indian multinational company which is in 1951, it works in industrial gear and material handling etc. From the name you must have guessed that it is an engineering related company, after this all these things have been discussed here, what happened here in BSC NSC, all the things discussed here are I will not share it with you.
Now look, this article does not mention any target etc. But what has been mentioned here is that brother, Vijay Kedia has a stake of 1.9 per cent in this company, which is not a small stake, it is a very big stake, you can see it here. Now come here, what is the market of 9377 crores. The company is profit making and gives dividend to its shareholders.
It has also maintained its ROC well, it is well maintained. ROC is also well maintained. Its face value is 10. Scroll down a bit, there is not a single CONS, you can see the PROS. Apart from this, scroll down a little further. Look, I am not motivating. There is also risk, keep that thing in mind. If you look at the quarterly results here, we have been showing the quarterly results since December 2021.
There is not a single quarterly result where the company has incurred a loss. Look, profit decrease and increase is a different thing. Sometimes profit decreased, sometimes it increased, but there has been no loss, this is a positive point. Apart from this, if you look at it on a year-on-year basis, here But we have data from March 2013 till the financial year 2020, is there even a single year where the company has incurred a loss?
Look, yes, it had reduced a lot here, the profit had reached 7 crores in 2018 but there was no loss and the company has maintained and increased its profit well since then even after 2018, if you see, you will see that the sales growth here is good, it is a little less than the last 10 years, but that's okay, no problem, the profit growth has been maintained tremendously, the stock price CGRP is amazing, only the last year's return is a little bad, that too is tremendous, apart from this, if you come to the balance sheet, see, there is a debt of 118 crores on the company, which was 697 crores in 2013, they have reduced the debt a lot and if you talk about the market cap of the company, it is around 9500 crores to 10000 crores, only 118 crores of debt is almost debt free.
Apart from this, reserves are also continuously increasing and have reached 1700 crores. Apart from this, fixed assets are also increasing and have reached 800 crores. The balance sheet is looking quite good here. Brother, we are seeing everything good in the financials. If we talk about the promoters' holding, it has increased from 59.2% to 59.2%.
It has not increased much but the promoters' holding is around 60% and the share of AI in this small company is % which was only 1.71 in March 2022. Again DI was at 1.85 in March 2022 and is currently at 3.67. You see, here we are seeing an amazing shareholding pattern of FII % DII% and the rest of the shareholding is around 27% with the public.
Now if you look at its financials, I am not going into details, I am just discussing with you in broad terms some of the main things. Its shareholding in the financials. The pattern is quite impressive. If you look at the cash flow here, it's not much, just a little, but that's fine. There's no problem.
The balance sheet looks impressive. Apart from this, its sales growth, profit growth, stock price, return on equity, everything is amazing. The company has been consistently profitable not just now but for the last 10-15 financial years. There is no problem at all. Meaning, everything is looking good here.
Now, if any big investor invests in any company, then think for yourself, that so much money, that is, if you look at 0 crores invested here, then they would not have invested just like that, brother, they would not have done some research. And the interesting thing is that there is still a decline of 39, the stock is at a discount, and they are still not exiting this stock.
So, they must be seeing something in it, that's why they are not exiting this stock. I am not motivating anyone. Let's try to see the opinion of experts once more. Who knows, we might even get to see the opinion of experts here. You can read the name here, Elcan Engineering Company Limited. If you scroll down a little, in the opinion of experts, only one analyst has given a rating here, who has declared it an outperformer.
This means that the rating is given here based on the next one year, so in the outperformer category, it will go up. Obviously, apart from this, there is the public opinion here. In the public opinion, there is 100% sell. Now it depends on you whether you are going into this with a short-term purpose or a long-term purpose.
After that, you decide whether you want to exit the stock, hold it or sell it. Now, if you are following the trend in any stock, you will see its technical chart here. If I zoom out a little, then you will see that here, as I told you, it had supported exactly a year ago in March 2024. I told you in the beginning that before that, it was acting as resistance here in October.
There was a break in 2023, in August 2023. Now, look, this is a volatile stock and what can we say about volatile stocks? You can understand that brother, nothing is known, it can fall to 20 or even 50, so this has already fallen significantly. Brother, the stock of 7739 is trading at 417, so a good fall has already happened.
Now, if you are planning to enter here, if you want that no, brother, should I enter the stock, there are chances of me making a profit in this, first of all, it is a risky stock, you can understand from volatile. Secondly, if you see the trend, it is down, so the risk has increased here, so what should you do here, if you are planning to enter this stock, then you should make small investments here through buy on dip, that will be better.
See, here if you are going for the purpose of swing trade, then you should have technical knowledge, if you If you don't have technical knowledge, don't go for swing trades at all. You might find yourself going for a profit and end up incurring a loss. That's why technical knowledge is crucial, only then should you go for swing trades.
The stock could consolidate from here. If you go for a swing trade, you'll be upset. There's no benefit. You should either buy deep and go for the long term. By long term, I don't mean the next 10 or 20 years. You can also have a two-year or three-year view, which also falls under the long-term category.
Meaning, any trade over one year falls under the long-term category. So, you should go for the long term here. It would be better if you bought at a high level. If you have the capacity, then average it out. If yes, then no problem, you can hold it. For the next one or two years, you definitely have a chance that this stock will recover, and a very good recovery.
So, an opportunity is developing in this stock. But for long term investors, whether you have this stock now or you are planning to buy it or you are planning to exit from it, it depends on whether you are going for short term in the stock or for long term, but still this is my personal opinion, I may be wrong here and whatever I have shared this news is in the public domain, if you want you can also check it yourself that before going into any stock, take advice from your financial advisor or you can do your own research, if you do not understand anything then you can comment me, I will reply to you, what is your opinion about this stock, do tell me by commenting and for such daily updates, do subscribe to Short Trade, so let us meet again in the same way with another great information, Jai Hind
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