ELGIEQUIP - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.0

📈 Positive

• 📊 Strong return metrics — ROCE at 28.4% and ROE at 21.9% reflect excellent operational efficiency.
• 💰 Ultra-low debt-to-equity ratio of 0.01 ensures financial resilience and minimal leverage risk.
• 📈 EPS of ₹11.3 supports consistent earnings visibility.
• 📈 DII holding increased by 1.01%, indicating rising domestic institutional confidence.
• 📈 MACD at 1.86 and RSI at 59.0 reflect stable technical momentum.
• 📈 Trading near DMA50 (₹491), suggesting a potential support zone.

⚠️ Limitation

• 📉 P/E of 43.8 is slightly above industry average (41.3), suggesting a premium valuation.
• 📉 PEG ratio of 1.88 indicates valuation may be stretched relative to growth.
• 📉 Quarterly PAT declined from ₹99.2 Cr. to ₹81.5 Cr., showing margin pressure.
• 📉 Volume below 1-week average may reflect short-term cooling in investor sentiment.
• 📉 Dividend yield of 0.44% offers modest passive income.

📰 Company Negative News

• 📉 FII holding declined by 1.50%, indicating reduced foreign investor interest.
• 📉 Quarterly profit variation of 12.0% reflects earnings volatility.

🌟 Company Positive News

• 📈 Trading near 52-week low (₹390), offering a potential value entry point.
• 📈 52-week performance up 37.1%, showing steady price appreciation.

⚙️ Industry

• ⚙️ ELGIEQUIP operates in the industrial air compressor and pneumatic equipment segment, serving manufacturing, automotive, and infrastructure sectors.
• 📊 Industry P/E of 41.3 reflects moderate growth expectations and cyclical exposure to industrial demand.

🧭 Conclusion

• 📌 Suggested entry zone: ₹480–₹495, near DMA50 and below recent highs for better margin of safety.
• 🕰️ Long-term holding favorable due to strong fundamentals, low debt, and industrial demand tailwinds.
• ⚖️ Monitor margin trends and foreign investor sentiment before aggressive accumulation.