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ELGIEQUIP - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 4.0
| Stock Code | ELGIEQUIP | Market Cap | 14,942 Cr. | Current Price | 472 ₹ | High / Low | 614 ₹ |
| Stock P/E | 42.5 | Book Value | 57.9 ₹ | Dividend Yield | 0.47 % | ROCE | 28.4 % |
| ROE | 21.9 % | Face Value | 1.00 ₹ | DMA 50 | 491 ₹ | DMA 200 | 510 ₹ |
| Chg in FII Hold | -1.50 % | Chg in DII Hold | 1.01 % | PAT Qtr | 90.8 Cr. | PAT Prev Qtr | 81.5 Cr. |
| RSI | 38.5 | MACD | -5.06 | Volume | 2,17,353 | Avg Vol 1Wk | 3,57,074 |
| Low price | 390 ₹ | High price | 614 ₹ | PEG Ratio | 1.82 | Debt to equity | 0.01 |
| 52w Index | 36.4 % | Qtr Profit Var | -7.24 % | EPS | 11.1 ₹ | Industry PE | 39.1 |
📊 Core Financials
- Revenue & Profitability: PAT stood at 90.8 Cr. vs 81.5 Cr. previous quarter, showing growth despite a -7.24% variation YoY.
- Margins: ROE at 21.9% and ROCE at 28.4% reflect strong efficiency and profitability.
- Debt Ratios: Debt-to-equity at 0.01 — virtually debt-free, ensuring financial resilience.
- Cash Flows: Dividend yield of 0.47% provides modest shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 42.5 vs Industry PE of 39.1 — slightly overvalued compared to peers.
- P/B Ratio: Current Price 472 ₹ / Book Value 57.9 ₹ ≈ 8.15, premium valuation.
- PEG Ratio: 1.82 — indicates fair but slightly expensive growth-adjusted valuation.
- Intrinsic Value: Strong fundamentals support valuation, though price is moderately stretched.
🏢 Business Model & Competitive Advantage
- Operates in air compressors and industrial equipment, serving diverse industries globally.
- Competitive advantage lies in engineering expertise, global footprint, and debt-free structure.
- Institutional sentiment mixed: FII holdings reduced (-1.50%), while DII holdings increased (+1.01%).
📈 Technical & Entry Zone
- DMA 50: 491 ₹ | DMA 200: 510 ₹ — stock trading below averages, indicating weakness.
- RSI: 38.5 — approaching oversold territory.
- MACD: -5.06 — bearish momentum persists.
- Entry Zone: Attractive near 430–450 ₹ for accumulation.
- Long-Term Holding: Strong candidate for long-term portfolio given profitability, low debt, and industry demand.
✅ Positive
- Strong ROE (21.9%) and ROCE (28.4%).
- Debt-free balance sheet (Debt-to-equity 0.01).
- Quarterly PAT growth from 81.5 Cr. to 90.8 Cr.
- DII holdings increased (+1.01%), reflecting domestic institutional support.
⚠️ Limitation
- High P/E ratio (42.5) compared to industry average.
- P/B ratio of 8.15 indicates premium valuation.
- Dividend yield of 0.47% offers limited shareholder returns.
📉 Company Negative News
- FII holdings reduced (-1.50%), showing weaker foreign investor sentiment.
- Stock trading below DMA 50 and DMA 200, reflecting technical weakness.
📈 Company Positive News
- Quarterly PAT improved from 81.5 Cr. to 90.8 Cr.
- DII holdings increased (+1.01%), reflecting domestic institutional confidence.
🏭 Industry
- Industry PE at 39.1 — sector trades at moderate valuations.
- Industrial equipment sector benefits from infrastructure growth, manufacturing expansion, and global demand.
🔎 Conclusion
ELGIEQUIP is a fundamentally strong company with excellent return ratios, debt-free balance sheet, and consistent profitability. Valuations are slightly stretched, but entry is attractive near 430–450 ₹. It remains a solid long-term holding given strong fundamentals, industry demand, and global presence.
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