Why Vijay Kedia just bet on this small-cap mining stock

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Building a successful stock portfolio starts with clear investment goals, a strategy suited to your risk appetite, and consistent engagement with both the market and your holdings.

Many investors also track the portfolios of seasoned market participants to identify emerging opportunities. One such investor is Vijay Kedia, whose investments in mid- and small-cap companies are closely watched by the market.

Kedia entered the stock market at the age of 19, inspired by his family's stockbroking background. He later founded Kedia Securities at the age of 33, building a reputation as a successful long-term investor.

In this article, we look at a small-cap company in which he recently acquired a stake.

Kedia has acquired a stake in small-cap mining equipment manufacturer Eimco Elecon. Through Kedia Securities Pvt. Ltd, he purchased 83,930 shares during the June 2026 quarter, valued at around ₹150 million at quarter-end. He did not hold any stake in the company in the previous quarter.

While Kedia has not disclosed the rationale behind the investment, Eimco Elecon's recent product launches and long-term growth strategy may help explain the move.

Eimco Elecon (India) manufactures underground mining equipment for India's mining industry and also supplies construction equipment for infrastructure projects.

Its portfolio includes underground loaders, chairlift man-riding systems and complete continuous miner packages comprising shuttle cars, roof bolters, the CM3500 continuous miner and feeder breakers.

The company has recently expanded into battery-powered underground vehicles, including multi-utility vehicles and the MCAR-E passenger carrier, as part of its focus on cleaner, technology-driven mining solutions. It continues to invest in new product development to support future growth.

In April 2026, Eimco Elecon launched two battery-powered underground mining vehicles:

Both vehicles feature flameproof and intrinsically safe electrical systems, enabling them to operate safely in underground coal mines where methane gas is present.

The launches come as mining companies increasingly look to replace diesel-powered underground vehicles with battery-powered alternatives to reduce emissions, lower heat generation and cut ventilation costs.

If adoption gathers pace, these products could open a meaningful growth avenue for the company.

Eimco Elecon reported a steady performance in the first quarter of FY27.

Revenue rose 14.6% year-on-year to ₹775 million, reflecting healthy demand and execution, while net profit increased 6.2% to ₹154 million. Although earnings growth trailed revenue growth, the company continued to maintain healthy profitability.

Management remains focused on expanding its portfolio of battery-powered underground vehicles and advanced mining equipment, which could support long-term growth as commercial adoption increases.

According to the FY26 annual report, the company is investing continuously in next-generation mining equipment designed to be more capable, efficient and aligned with the mining industry's increasing focus on automation and sustainability.

Eimco Elecon is also investing in strengthening its brand and expanding its market presence, with the aim of entering new markets while deepening relationships with existing customers.

Over the past five trading sessions, Eimco Elecon shares have declined from ₹1,919 to ₹1,793.

The stock hit a 52-week high of ₹2,614.40 on 11 July 2025 and a 52-week low of ₹1,413.70 on 30 March 2026.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com

Equitymaster is India's leading independent equity research platform, providing in-depth research and analysis on BSE- and NSE-listed companies since 1996. As a SEBI-registered Research Analyst [Registration No....