Check Before You Invest : Elgi Equipments Ltd

Q: 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: Is Elgi Equipments Ltd a good quality company?

Elgi Equipments Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Elgi Equipments Ltd undervalued or overvalued?

Elgi Equipments Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 49.04, Historic Median: 56.30. Price to Book, Current: 9.21, Historic Median: 12.01. Price to Sales, Current: 7.85, Historic Median: 8.14. EV to EBITDA, Current: 31.78, Historic Median: 37.35

Q: 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

Q: 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 13.99%, indicating slower growth.

Q: 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: 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: Net Profit Margin of Elgi Equipments Ltd?

Elgi Equipments Ltd Net Profit Margin is 16.82% for FY-2025, is above its 5-year median of 15.51%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 24.2, Historic Median: 22.3. Operating Profit Margin (%), Current: 21.01, Historic Median: 17.97. Net Profit Margin (%), Current: 16.82, Historic Median: 15.51

Q: 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: Return on capital employed (ROCE) of Elgi Equipments Ltd?

Elgi Equipments Ltd Return on capital employed is 28.5% for FY-2025, which is in line with its 5-year historical median of 28.5%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Check Before You Invest : Elgi Equipments Ltd

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Elgi Equipments Ltd undervalued or overvalued?

Elgi Equipments Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	49.04	56.30
Price to Book	9.21	12.01
Price to Sales	7.85	8.14
EV to EBITDA	31.78	37.35

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 13.99%, 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 its 5-year median of 15.51%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	24.2	22.3
Operating Profit Margin (%)	21.01	17.97
Net Profit Margin (%)	16.82	15.51

B: Does the business utilize capital efficiently?

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 capital employed (ROCE) of Elgi Equipments Ltd?

Elgi Equipments Ltd Return on capital employed is 28.5% for FY-2025, which is in line with its 5-year historical median of 28.5%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 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 5-year historical median of 21.97%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Elgi Equipments Ltd?

Elgi Equipments Ltd Cash conversion cycle is 71 days, below its 5-year historical median of 79 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.99	1
ROE (%)	21.97	21.97
ROCE (%)	28.5	28.5
Cash Conversion Cycle	71 days	79 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Elgi Equipments Ltd?

Elgi Equipments Ltd Debt-to-Equity ratio is 0.00, which is lower 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

D: Promoter shareholding and pledge status of Elgi Equipments Ltd?

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)

E: How does Elgi Equipments Ltd performance compare with that of its Peers?

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 stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	12.9	14.2
Gross Profit Growth (%)	8.6	18.9
Operating Profit Growth (%)	8.7	20.5
Net Profit Growth (%)	8.7	20.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	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 21.4% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	21.4%	20.7%	7%	23.9%

Q.2 Valuation ratios of Elgi Equipments Ltd vs historical?

The current P/E ratio of 49.04 is lower than its historical median of 56.30, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	49.04	56.30	37.40
Price to Book	9.21	12.01	5.31
Price to Sales	7.85	8.14	3.28
EV to EBITDA	31.78	37.35	22.66

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Check Before You Invest : Elgi Equipments Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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