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Elgi Equipments Ltd. Stock Analysis

Small Cap
Evaluated by 1539 users | BSE: 522074 | NSE: ELGIEQUIP |
Compressors / Pumps
Elgi Equipments incorporated in 1960; is engaged in manufacturing of air compressors and automobile service station equipment. Products manufactured by company has wide applications in the area of mining, pharmaceuticals, ship building, power, oil, chemicals, textiles, printing,  paper,...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Elgi Equipments Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 28.44%21.39%16.52%15.05%9.89%8.69%12.33%12.47%12.46%13.28%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 7767958178287768668921,0241,1771,081
Y-o-Y Gr. Rt.-2.5%2.7%1.4%-6.3%11.6%3%14.8%15%-8.2%
Adjusted EPS (Rs.) 2.592.362.152.451.831.552.172.452.653.05
Y-o-Y Gr. Rt.--8.9%-8.9%14%-25.3%-15.3%40%12.9%8.2%15.1%
Book Value per Share (Rs.) 10.2912.113.7715.6516.8215.417.0718.9320.8922.4
Adjusted Net Profit 82.174.86877.657.94968.877.88496.8
Net Op. Cash Flow (Rs. Cr.) 40.844.3240.478.813586.927.810773
Debt to Cash Flow from Ops 009.752.291.440.470.563.070.41.34
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Elgi Equipments Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 3.8%6.9%6.6%-8.2%
Adjusted EPS 1.8%10.8%12%15.1%
Book Value per Share 95.99.57.2
Share Price 15.1% 15.2% 4.5% -13.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 28.1221.0716.5916.6511.259.5913.3813.6313.3214.1
Operating Profit Margin (%) 16.2313.312.1714.7112.1113.212.7412.912.0411.12
Net Profit Margin (%) 10.599.418.339.377.465.667.727.597.148.95
Debt to Equity 000.050.190.210.130.090.140.060.14
Working Capital Days 119123139170195146127145154184
Cash Conversion Cycle 32475161785744586376
Entity Percentage Holding
Promoters 31.90%
Institutions 31.33%
Non-Institutions 36.77%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Elgi Equipments and arrived at the following conclusion:

Past 10 year's financial track record indicates that Elgi Equipments is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Elgi Equipments's performance infers:

Elgi Equipments earnings have grown by 10.8%, whereas share price has appreciated 15.2% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Elgi Equipments share prices over the last 10 years. Here is what we found out:

Elgi Equipments share price has appreciated 12.9% annually over the past ten years.

Elgi Equipments incorporated in 1960; is engaged in manufacturing of air compressors and automobile service station equipment.

Products manufactured by company has wide applications in the area of mining, pharmaceuticals, ship building, power, oil, chemicals, textiles, printing,  paper, transport, electronics, telecommunications, defence, medical, railways, food and beverages and plastics.

ELGI has received ISO 9001:2000 certification for its quality management. The company has

Elgi Equipments incorporated in 1960; is engaged in manufacturing of air compressors and automobile service station equipment.

Products manufactured by company has wide applications in the area of mining, pharmaceuticals, ship building, power, oil, chemicals, textiles, printing,  paper, transport, electronics, telecommunications, defence, medical, railways, food and beverages and plastics.

ELGI has received ISO 9001:2000 certification for its quality management. The company has network of 114 dealers.

The company has global presence in countries namely Europe, North America, Latin America, Africa, Australia, Middle East, South East Asia, West Asia and the Far East.

Products Rotary Screw Air Compressors- Under this company designs and manufactures electric and diesel powered screw air compressor. Under this the company manufactures wide range of products such as electric powered screw air compressors, airends, oil-free screw air compressor, centrifugal air compressor and portable screw air compressor.  The company has also manufactured worlds smallest screw air compressor known as ELGI Micro Rotary.

Reciprocating Air Compressors- Under this, EEL manufactures a range of compressors namely horizon series reciprocating air compressors, borewell compressors, ELGIPET air power systems, high pressure / volume reciprocating air compressors, high volume tank mounted compressors, tractor mounted air compressors, high pressure reciprocating air compressor and bare compressor pumps.

Automotive Equipments- Under this the company manufactures equipments for two, three and four wheelers that provides a total service station solutions.  Company is engaged in production of automotive equipments such as body shop equipment, service station equipment, wheel servicing equipment, test lanes, pneumatic equipment are among others.

Railway Compressor- ELGI manufactures Railway Compressors and a variety of compressor solutions for railway applications like circuit breakers, engine starting etc. The company manufactures products such as electrical locomotives, diesel locomotives, expressors, auxillary compressor, exhausters, wind Screen wipers and water raising apparatus.

After sales services- ELGI provides after sales services in area of service agreements, monitoring solutions, energy saving products and air solutions.

Important events

In 2010 Elgi Equipments has acquired Belair of France, a company engaged in assembly, sales and service of industrial compressors, piping, fittings and accessories.

In 2011 Company has incorporated a wholly owned subsidiary in Australia under the name and style of ELGI EQUIPMENTS AUSTRALIA PTY LTD.
-Elgi succeeds in launching the first Oil-free screw air compressor.

2012
-The Company has acquired 100% of Rotair S.p.a. The acquisition is through a 100% subsidiary incorporated in Italy, Elgi Compressors Italy.
-Elgi Equipmnt - Acquisition of Patton's Inc. in USA by Elgi Equipments Ltd.
-Elgi Equipement buys Italian Company.
-Elgi launches the compact, silent and energy efficient EN Series screw air compressors."

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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