⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ELGIEQUIP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | ELGIEQUIP | Market Cap | 15,307 Cr. | Current Price | 483 ₹ | High / Low | 608 ₹ |
| Stock P/E | 41.3 | Book Value | 57.9 ₹ | Dividend Yield | 0.46 % | ROCE | 28.4 % |
| ROE | 21.9 % | Face Value | 1.00 ₹ | DMA 50 | 492 ₹ | DMA 200 | 498 ₹ |
| Chg in FII Hold | -3.01 % | Chg in DII Hold | 1.84 % | PAT Qtr | 99.1 Cr. | PAT Prev Qtr | 90.8 Cr. |
| RSI | 44.5 | MACD | -4.50 | Volume | 5,05,280 | Avg Vol 1Wk | 4,23,800 |
| Low price | 390 ₹ | High price | 608 ₹ | PEG Ratio | 1.77 | Debt to equity | 0.01 |
| 52w Index | 42.5 % | Qtr Profit Var | 23.7 % | EPS | 11.4 ₹ | Industry PE | 35.8 |
📊 Core Financials
- Revenue growth: Positive, PAT increased to 99.1 Cr. from 90.8 Cr.
- Profit margins: EPS at 11.4 ₹, ROE 21.9%, ROCE 28.4% — strong efficiency
- Debt ratios: Very low debt-to-equity at 0.01, nearly debt-free
- Cash flows: Healthy profitability supports strong cash generation
- Return metrics: ROE and ROCE above industry averages
💹 Valuation Indicators
- P/E Ratio: 41.3, higher than industry PE of 35.8, reflects premium valuation
- P/B Ratio: ~8.34 (483 ₹ / 57.9 ₹), relatively high
- PEG Ratio: 1.77, suggests valuation is stretched relative to growth
- Intrinsic Value: Slightly overvalued at current levels, supported by strong fundamentals
🏢 Business Model & Competitive Advantage
- Operates in industrial air compressors and equipment sector
- Strong competitive advantage through global presence and engineering expertise
- Industry demand supported by manufacturing and infrastructure expansion
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 450–470 ₹ range
- Long-Term Holding: Recommended, strong fundamentals and brand positioning support sustained growth
✅ Positive
- High ROE (21.9%) and ROCE (28.4%) show strong capital efficiency
- Debt-to-equity ratio at 0.01 indicates near debt-free status
- Quarterly profit growth of 23.7% demonstrates strong momentum
⚠️ Limitation
- P/E ratio (41.3) above industry average, reflects premium valuation
- P/B ratio at ~8.34 is relatively high
- PEG ratio of 1.77 suggests valuation stretched compared to growth
📰 Company Negative News
- FII holding decreased (-3.01%)
- Stock trading below 50 DMA (492 ₹) and 200 DMA (498 ₹), showing weak momentum
🌟 Company Positive News
- PAT increased to 99.1 Cr. from 90.8 Cr.
- DII holding increased (+1.84%)
- Dividend yield at 0.46% provides shareholder returns
🏭 Industry
- Industry PE at 35.8, ELGIEQUIP trades at a premium due to strong fundamentals
- Sector benefits from industrial expansion and infrastructure growth
🔎 Conclusion
- ELGIEQUIP shows strong fundamentals with robust profitability, high returns, and minimal debt
- Valuation is premium, with PEG ratio suggesting stretched levels relative to growth
- Recommended for long-term holding, with entry near 450–470 ₹ offering better risk-reward potential