Kedia buys ₹150m Eimco Elecon stake on mining pivot

Veteran investor Vijay Kedia has acquired an 83,930-share position in Eimco Elecon through his firm, Kedia Securities. The stake was valued at roughly ₹150 million at the end of the June 2026 quarter, marking a new entry for the investor who held no shares in the previous period. Kedia, who entered the market at 19 and founded his firm at 33, is widely tracked for his mid- and small-cap allocations.

Eimco Elecon manufactures specialized underground mining equipment, including loaders, chairlift man-riding systems, and complete continuous miner packages. These packages comprise shuttle cars, roof bolters, the CM3500 continuous miner, and feeder breakers. The company is now expanding this hardware portfolio to include cleaner technology, specifically targeting the transition away from traditional diesel-powered underground vehicles.

In April 2026, Eimco Elecon launched two battery-powered underground mining vehicles: the MCAR-E and the UV-A-BE. The MCAR-E is a low-seam, 15-person man-riding vehicle, while the UV-A-BE is a multi-utility vehicle built for a 10-tonne payload. Both feature flameproof and intrinsically safe electrical systems, making them suitable for the hazardous, methane-rich environments of underground coal mines.

This product pivot addresses a concrete operational shift in the mining sector. Companies are actively seeking battery-powered alternatives to diesel equipment to reduce emissions, lower ambient heat generation, and significantly cut ventilation costs. If this industry-wide adoption gathers pace, Eimco Elecon's new vehicle lines could open a meaningful revenue stream and differentiate its offerings.

The company's first-quarter fiscal 2027 results suggest underlying demand remains intact. Revenue rose 14.6% year-on-year to ₹775 million, though net profit growth lagged, increasing 6.2% to ₹154 million. According to its FY26 annual report, the company is prioritizing continuous investment in next-generation, automated equipment aligned with the sector's sustainability focus.

Despite the high-profile backing and strategic shift, the stock has recently softened, falling from ₹1,919 to ₹1,793 over five sessions. The equity trades well above its 52-week low of ₹1,413.70 from March 2026, but remains far below its July 2025 peak of ₹2,614.40. Management is simultaneously working to expand its market presence and deepen customer relationships to support future growth.