Recommendation from Capital Goods and Automobile & Ancillaries Sectors

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.[EasyDNNnews:PaidContentStart]

Elecon Engineering Company Ltd
CMP - ₹624.75
BSE CODE 505700
Volume 88,494
Face Value ₹1
Target ₹675 - ₹687
Stoploss ₹580 (CLS)

Founded in 1951, the company is a leading Indian manufacturer of industrial gears and material-handling equipment. The company designs, manufactures and supplies products like helical, bevel, worm and planetary gearboxes, stacker-reclaimers, conveyors. It serves sectors including mining, power, steel, cement, sugar and ports, with a strong global presence. In Q1FY26, the company reported strong revenue growth of 25 per cent year-on-year at ₹491 crore, while net profit soared significantly to ₹175 crore from ₹73 crore in the same quarter last year. Ace investor Vijay Kedia continues to hold a 1 per cent stake in the company as of June 2025, though his shareholding has declined compared to previous quarters. After the monsoon period, which typically disrupts industrial activity, the company is well-positioned to capitalize on structural growth drivers such as infrastructure expansion, government push for manufacturing and rising demand from core industries. Considering its upside potential, we recommend BUY.

Mercury EV-Tech Ltd
CMP - ₹46.71
BSE CODE 531357
Volume 4,61,523
Face Value ₹1
Target ₹50 - ₹52
Stoploss ₹43 (CLS)

The company offers a wide range of electric vehicles including 2-wheelers, 3-wheelers (loaders & passengers), mini-trucks, and specialty/custom vehicles, along with in-house development of batteries, battery management systems, chassis, motor controllers and a CED coating facility. In Q1FY26, the company showcased strong financial momentum, with revenue growing by leaps and bounds to ₹22.57 crore from ₹3.87 crore in the June quarter last year. Net profit also posted a remarkable jump, surging to ₹1.98 crore compared with ₹0.49 crore in the same period a year ago. The company has secured approval to manufacture MUSHAK EV, a battery-operated 4W goods carrier and N1 category vehicle. Designed with an unbreakable body for superior durability and safety, the model is fully manufactured in India and qualifies for upcoming government subsidies. Given the promising outlook for the EV sector and the company’s solid financial performance backed by strategic initiatives, we recommend BUY.

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