Elgi Equipments Ltd logo

Elgi Equipments Ltd

ELGIEQUIP NSE

Incorporated in 1960, Elgi Equipments Limited along with its subsidiaries, is in the business of manufacturing and supplying Air Compressors ** & Automotive Equipments**. It is also providing related after sales services [1]

AI Verdict: BUY Confidence: 6%

Elgi Equipments demonstrates strong profit compounding at 27% TTM with consistent ROE of 21-22%, backed by unanimous analyst buy ratings. However, the premium valuation at 45.7x PE and 8.8x PB limits margin of safety, making it suitable for long-term investors comfortable with paying up for quality.

Key Fundamentals

SmallcapCompressors Pumps & Diesel EnginesIndustrial Products
Market Cap
₹19,327 Cr
Volatility
Moderate
P/E Ratio
44.51
EBITDA
₹564 Cr
Return on Equity
19.36%
Debt to Equity
0.35
Book Value
₹70.43
EPS
₹10.23
52W High
₹633.85
52W Low
₹408.25

Technical Indicators

Key Insights

Strengths

1
  • Company has been maintaining a healthy dividend payout of 20.0%

Weaknesses

1
  • Stock is trading at 8.65 times its book value

Growth Rate

Revenue Growth
10.72% ↗
Net Income Growth
21.02% ↘
Cash Flow Change
37.21% ↗
ROE
-3.10% ↘
ROCE
-4.42% ↘
EBITDA Margin (Avg.)
-15.25% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 1d ago
BUY
Risk medium

Elgi Equipments demonstrates strong profit compounding at 27% TTM with consistent ROE of 21-22%, backed by unanimous analyst buy ratings. However, the premium valuation at 45.7x PE and 8.8x PB limits margin of safety, making it suitable for long-term investors comfortable with paying up for quality.

Bull Case 8
  • Unanimous analyst consensus with 100% buy ratings from all 4 analysts covering the stock
  • Compounded profit growth of 27% TTM significantly outpacing sales growth of 13%, indicating margin expansion
  • Consistent ROE of 21-22% over 3-5 years demonstrates superior capital efficiency for an industrial company
  • 5-year compounded profit CAGR of 34% reflects structural earnings acceleration
  • 10-year stock CAGR of 22% shows sustained long-term wealth creation track record
  • 10-year compounded sales CAGR of 11% indicates steady demand growth across business cycles
  • Healthy dividend payout ratio of 20% with 0.44% yield shows shareholder-friendly capital allocation
  • Market cap of Rs 19,292 Cr provides adequate liquidity and institutional ownership potential
Bear Case 8
  • PE ratio of 45.7x is significantly elevated versus industrial sector median of 25-30x, pricing in near-perfect execution
  • Price-to-book of 8.8x leaves minimal margin of safety if growth decelerates
  • 3-year stock CAGR of only 5% despite 16% profit CAGR suggests valuation de-rating already underway
  • 1-year stock return of 17% has compressed further upside given already rich multiples
  • TTM sales growth of 13% is decelerating from 5-year CAGR of 15%, signaling potential demand slowdown
  • 3-year sales CAGR of only 9% is below long-term average of 11%, indicating cyclical headwinds
  • Dividend yield of just 0.44% offers negligible income cushion during potential drawdowns
  • Limited analyst coverage with only 4 ratings increases risk of information asymmetry for retail investors

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Positives 2
  • FY26 profit up 23% May 29

    Consolidated net profit rose 23% to ₹430 crore for FY26, with revenue growing 13% to ₹3,951 crore.

  • Final dividend of ₹2.70/share May 29

    Board recommended a final dividend of ₹2.70 per share for FY26, alongside appointment of new directors and auditors.

Neutral 3
  • New Business Head for Americas/Europe Jun 11

    Indranil Sen appointed as Business Head for Americas and Europe, transitioning from CFO role upon new CFO onboarding.

  • Investor meet with Wasatch Global Jun 4

    One-on-one physical meeting scheduled with Wasatch Global Investors on June 9, 2026. No UPSI to be disclosed.

  • Q4FY26 con-call recording released May 30

    Audio/video recording of Q4FY26 analyst and investor con-call held on May 29, 2026 made available on company website.

TL;DR: Elgi Equipments delivered strong FY26 results with 23% profit growth and 13% revenue growth, signaling healthy demand in the industrial compressor segment. No material headwinds surfaced in recent news flow. Leadership transitions in the CFO and business head roles bear watching but appear orderly. The trend is positive with sustained double-digit growth and shareholder-friendly capital returns.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
836
724
806
822
866
801
869
848
993
867
968
1,003
1,113
Expenses
708
635
663
692
741
687
727
728
843
746
828
860
940
Operating Profit
127
89
143
129
125
114
142
119
150
121
140
144
173
OPM %
15%
12%
18%
16%
14%
14%
16%
14%
15%
14%
14%
14%
16%
Other Income
128
20
13
13
15
14
16
15
18
23
55
11
22
Interest
5
5
7
8
10
9
8
6
8
7
7
5
6
Depreciation
20
19
19
19
20
19
19
19
20
19
21
21
25
PBT
231
86
130
114
110
100
131
111
140
118
167
129
164
Tax %
26%
29%
30%
27%
31%
27%
28%
27%
27%
27%
27%
26%
22%
Net Profit
170
60
91
84
76
73
95
81
102
86
121
95
128
EPS in Rs
5.37
1.91
2.88
2.65
2.41
2.3
2.99
2.54
3.22
2.7
3.83
3
4.04
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
1,294
1,401
1,370
1,604
1,863
1,829
1,924
2,525
3,041
3,218
3,510
3,951
Expenses
1,204
1,274
1,229
1,426
1,669
1,692
1,707
2,227
2,604
2,727
2,982
3,372
Operating Profit
90
127
141
178
194
138
217
298
437
491
529
579
OPM %
7%
9%
10%
11%
10%
8%
11%
12%
14%
15%
15%
15%
Other Income
32
6
14
10
11
14
25
54
175
60
63
110
Interest
17
14
9
7
11
17
15
15
24
34
34
25
Depreciation
37
44
45
44
51
65
74
74
78
77
76
86
PBT
68
75
100
137
144
70
153
263
510
440
482
577
Tax %
30%
32%
26%
30%
28%
39%
33%
32%
27%
29%
27%
25%
Net Profit
48
51
74
95
103
43
102
178
371
312
350
430
EPS in Rs
1.52
1.61
2.34
3.01
3.25
1.34
3.23
5.63
11.7
9.85
11.05
13.57
Div. Payout %
33%
31%
21%
20%
20%
61%
25%
20%
17%
20%
20%
20%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
16
16
16
16
16
16
32
32
32
32
32
32
Reserves
478
530
591
673
755
753
838
1,001
1,339
1,580
1,834
2,200
Borrowings
367
304
251
266
238
448
465
436
577
638
577
533
Other Liabilities
296
256
250
298
366
334
430
491
531
558
594
780
Total Liabilities
1,156
1,106
1,108
1,253
1,375
1,551
1,765
1,959
2,479
2,807
3,037
3,546
Fixed Assets
454
462
441
440
504
600
572
553
587
587
592
699
CWIP
10
2
4
2
6
4
4
7
3
10
53
136
Investments
15
15
15
15
14
12
24
31
37
41
81
261
Other Assets
677
627
648
795
851
935
1,165
1,367
1,852
2,170
2,312
2,450
Total Assets
1,156
1,106
1,108
1,253
1,375
1,551
1,765
1,959
2,479
2,807
3,037
3,546
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
78
126
126
47
172
35
240
69
166
285
391
454
Investing
-17
-16
-39
-53
-107
-152
-110
2
-217
-101
-283
-98
Financing
-52
-100
-77
-10
-60
91
-48
-81
60
-79
-217
-312
Net Cash Flow
10
10
9
-17
5
-25
82
-11
8
105
-109
43
Free Cash Flow
55
103
98
7
120
-6
211
44
109
243
298
348
CFO/OP
106
119
102
49
114
57
124
49
65
92
100
104
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
69
66
65
78
72
69
76
68
66
67
63
67
Inventory Days
132
106
109
110
99
128
122
130
143
145
129
134
Days Payable
82
79
83
86
87
78
103
86
75
80
72
87
Cash Conversion Cycle
119
92
91
102
83
119
95
112
135
132
121
114
Working Capital Days
28
34
36
39
38
36
23
36
28
27
30
45
ROCE %
8%
11%
13%
16%
16%
8%
13%
19%
24%
22%
22%
24%

Shareholding Pattern

As of Mar 2026
Promoters 31.19%
Public 22.53%
FIIs 22.20%
Others 14.99%
DIIs 9.08%
Total 99.99%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
31.91%
31.91%
31.91%
31.91%
31.32%
31.32%
31.19%
31.19%
31.19%
31.19%
31.19%
31.19%
31.19%
31.19%
31.19%
31.19%
31.19%
31.19%
31.19%
31.19%
31.19%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.92%
0.92%
0.92%
0.93%
0.93%
29.54%
29.47%
29.40%
29.39%
29.09%
27.62%
26.12%
23.11%
22.20%
DIIs
8.30%
8.03%
5.98%
5.35%
4.59%
4.51%
3.33%
4.78%
4.87%
4.87%
3.35%
3.45%
4.98%
5.00%
5.05%
5.08%
4.98%
5.23%
6.25%
8.09%
9.08%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
21.20%
21.41%
22.25%
21.98%
22.31%
21.76%
21.58%
21.31%
21.33%
21.29%
21.66%
21.42%
20.79%
20.81%
20.86%
20.97%
20.82%
21.66%
21.88%
22.76%
22.53%
Others
38.60%
38.65%
39.86%
40.76%
41.77%
42.41%
43.90%
41.80%
41.69%
41.73%
42.87%
43.01%
13.49%
13.53%
13.49%
13.36%
13.92%
14.30%
14.56%
14.85%
14.99%
No. of Shareholders
27,039
34,095
41,226
40,123
46,164
44,386
52,382
48,786
47,236
49,934
58,126
56,754
55,150
54,988
63,568
65,977
68,533
76,951
79,971
92,465
89,695

Documents

Frequently Asked Questions about Elgi Equipments Ltd

What does Elgi Equipments Ltd do?
Incorporated in 1960, Elgi Equipments Limited along with its subsidiaries, is in the business of manufacturing and supplying Air Compressors ** & Automotive Equipments**. It is also providing related after sales services [1]
Where is Elgi Equipments Ltd (ELGIEQUIP) listed?
Elgi Equipments Ltd is listed on the Indian stock exchanges. It is listed on NSE: ELGIEQUIP and BSE: 522074. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Elgi Equipments Ltd belong to?
Elgi Equipments Ltd operates in the Industrials sector within the Industrial Products industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Elgi Equipments Ltd?
Elgi Equipments Ltd has a market capitalisation of approximately ₹19326.70 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Elgi Equipments Ltd?
The Price-to-Earnings (PE) ratio of Elgi Equipments Ltd is 44.51. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Elgi Equipments Ltd?
Over the past 52 weeks, Elgi Equipments Ltd has traded between a low of ₹408.25 and a high of ₹633.85. This range helps investors understand the stock's price volatility and recent trading levels.
Does Elgi Equipments Ltd pay dividends?
Yes, Elgi Equipments Ltd has a dividend yield of 0.44%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Elgi Equipments Ltd?
Elgi Equipments Ltd has a Return on Equity (ROE) of 19.36%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Elgi Equipments Ltd on Tapetide?
On Tapetide, you can view Elgi Equipments Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Incorporated in 1960, Elgi Equipments Limited along with its subsidiaries, is in the business of manufacturing and supplying Air Compressors ** & Automotive Equipments**. It is also providing related after sales services [1]

Website elgi.com
CEO Dr. Jairam Varadaraj
Employees 2,138
Listed 1995-11-22
Face Value ₹ 1
Issued Size 31,69,09,016

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