ELGIEQUIP - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

🛠️ Core Financials Breakdown

Profitability & Growth

EPS: ₹11.0 ➜ decent earnings capacity

PAT Growth: ₹102 Cr vs ₹80.6 Cr ➜ up 33.8% QoQ ➜ healthy momentum

Efficiency Metrics

ROE: 20.1% | ROCE: 21.9% ➜ robust capital utilization ➜ signals operational strength

Debt & Dividend

Debt-to-equity: 0.31 ➜ reasonably leveraged ➜ not concerning but worth monitoring

Dividend Yield: 0.39% ➜ conservative payout ➜ capital retained for growth

📌 Takeaway: Solid profitability profile with accelerating earnings ➜ moderate debt structure supports expansion.

📊 Valuation Snapshot

Metric Value Interpretation

P/E Ratio 51.1 premium vs industry PE (41.8) ➜ priced for growth

P/B Ratio ~9.56 (₹563 / ₹58.9) ➜ asset-light model ➜ premium justified

PEG Ratio 1.88 high PEG ➜ implies future growth may be priced in

📉 Verdict: Overvalued relative to industry ➜ PEG indicates limited upside unless growth surprises.

🧬 Business Model & Strategic Strength

Leading provider of air compressors and pneumatic equipment

Global footprint with presence in industrial, automotive, and healthcare segments

Moats

Deep engineering expertise and proprietary designs

Strong brand recognition and OEM relationships

Efficient cost structure and customer retention in export markets

📌 Risks

Global demand sensitivity ➜ impacted by manufacturing cycles

Rising competition from global players with aggressive pricing

FX fluctuations and regulatory barriers in some markets

📈 Technical Picture

RSI: 55.5 ➜ neutral ➜ not overbought or oversold

MACD: 11.1 ➜ positive momentum ➜ short-term strength building

Price above DMA 200, near DMA 50 ➜ potential bounce zone

✅ Suggested Entry Zone: ₹525–₹545 📦 Look for accumulation on dips ➜ entry near 200-DMA preferable for safety margin

🧭 Long-Term Investment Guidance

Suitable for investors seeking

Exposure to capital goods & industrial automation themes

High ROE businesses with global growth footprint

Mid-cap stock with scalability and stable fundamentals

📊 Monitor

Order book size and export share trends

Innovation in oil-free compressors & industrial automation

Margin resilience despite input cost pressures

Want a side-by-side with Ingersoll-Rand or Kirloskar Pneumatic to see who’s compressing profits more efficiently? Let’s lay out a comparative grid and bring clarity to the pressure points.

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