Vijay Kedia Buys ₹10 Cr Stake in Eimco Elecon

Renowned investor Vijay Kedia has acquired nearly 1% stake in Eimco Elecon through his firm, Kedia Securities Ltd., purchasing 57,441 shares at ₹1,906 per share (total investment ~₹10 crore). The stock reacted positively, rising over 5%, despite the company’s weak fundamentals—its revenue and net profit have halved YoY in Q2, with EBITDA down 65.6% and margins shrinking from 23% to 15.7%. Eimco Elecon reported Q2 revenue of ₹332 million (vs ₹666 million a year ago) and net profit of ₹53.5 million (from ₹131 million), reflecting severe operational headwinds in the industrial machinery sector. Amid this move, Kedia expressed skepticism about AI adoption in Indian companies, stating that most are using AI only for presentations, not real operations—though he sees real potential for firms genuinely leveraging AI. He highlighted data centres as a high-growth sector in India. While Kedia’s investment signals long-term confidence in Eimco Elecon, the near-term financial performance remains under pressure, making it a high-conviction contrarian bet. Investors will watch for turnaround actions and future results closely.