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INVESTMENT INSIGHTS

Check Before You Invest : Elgi Equipments Ltd

BSE: 522074 NSE: ELGIEQUIP ISIN: INE285A01027
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Compressors / Pumps

Snapshot

Q.1 Which industry/sub-sector does Elgi Equipments Ltd belong to?
Elgi Equipments Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Compressors / Pumps segment.
Q.2 Is Elgi Equipments Ltd a good quality company?
Elgi Equipments Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Elgi Equipments Ltd undervalued or overvalued?
Elgi Equipments Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Elgi Equipments Ltd a good buy now?
Elgi Equipments Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Elgi Equipments Ltd?
Elgi Equipments Ltd revenue growth is 12.9% for FY-2025 , which is below its 5 year CAGR of 14% , indicating slower growth.
Q.2 Gross Profit margin of Elgi Equipments Ltd?
Elgi Equipments Ltd Gross profit margin which is the profit after deduction of direct costs, is 24.2% for FY-2025 , which is above its 5 year median of 22.3% , indicating increasing margins.
Q.3 Operating Profit Margin of Elgi Equipments Ltd?
Elgi Equipments Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.01% for FY-2025 , which is above its 5 year median of 17.97% indicating increasing margins.
Q.4 Net Profit Margin of Elgi Equipments Ltd?
Elgi Equipments Ltd Net Profit Margin is 16.82% for FY-2025 , is above with its 5 year median of 15.51%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 24.2 22.3
Operating Profit Margin 21.01 17.97
Net Profit Margin 16.82 15.51
Q.5 Return on Asset of Elgi Equipments Ltd?
Elgi Equipments Ltd Return on Asset is 16.71%, which is in line with its 5 year historical median of 16.71%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Elgi Equipments Ltd?
Elgi Equipments Ltd Return on equity is 21.97% for FY-2025 , which is in line with its historical median of 21.97%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Elgi Equipments Ltd?
Elgi Equipments Ltd Return on capital employed is 28.5% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Elgi Equipments Ltd?
Elgi Equipments Ltd Cash conversion cycle is 71 days, below its historical median of 79 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.99 1
ROE 21.97 21.97
ROCE 28.5 28.5
Cash Conversion Cycle 71 days 79 days
Q.9 Debt to Equity ratio of Elgi Equipments Ltd?
Elgi Equipments Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.07 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Elgi Equipments Ltd?
Elgi Equipments Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Elgi Equipments Ltd?
Promoters hold 31.19% of the Elgi Equipments Ltd, with 0.88% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Elgi Equipments Ltd vs industry peers?
Elgi Equipments Ltd revenue CAGR is 13.99% , compared to the industry median CAGR of 14.24% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,080.9 1,124.1
Gross Profit 503.6 125
Operating Profit 437 162
Net Profit 350 61
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.99 1
ROE 21.97 15
ROCE 28.5 19.99
Cash Conversion Cycle (days) 70.57 92

Valuation & price assessment

Q.1 Stock return of Elgi Equipments Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 23.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 23.7% 22.9% 5.1% 24.5%
Q.3 Valuation ratios of Elgi Equipments Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 47.53 44.17 38.00
Price to Book 8.92 4.99 5.26
Price to Sales 7.61 3.80 3.25
EV to EBITDA 30.77 25.41 22.07

Check more companies

1. Elgi Equipments
2. KSB
3. Kirloskar Brothers
4. Ingersoll Rand
5. Kirloskar Pneumatic
6. Shakti Pumps (I)
7. Dynamatic Tech
8. Oswal Pumps
9. WPIL
10. Roto Pumps
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