ELGIEQUIP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | ELGIEQUIP | Market Cap | 17,541 Cr. | Current Price | 554 ₹ | High / Low | 608 ₹ |
| Stock P/E | 47.3 | Book Value | 57.9 ₹ | Dividend Yield | 0.40 % | ROCE | 28.4 % |
| ROE | 21.9 % | Face Value | 1.00 ₹ | DMA 50 | 513 ₹ | DMA 200 | 502 ₹ |
| Chg in FII Hold | -0.91 % | Chg in DII Hold | 1.00 % | PAT Qtr | 99.1 Cr. | PAT Prev Qtr | 90.8 Cr. |
| RSI | 62.0 | MACD | 17.2 | Volume | 3,16,024 | Avg Vol 1Wk | 3,93,683 |
| Low price | 408 ₹ | High price | 608 ₹ | PEG Ratio | 2.03 | Debt to equity | 0.01 |
| 52w Index | 72.6 % | Qtr Profit Var | 23.7 % | EPS | 11.4 ₹ | Industry PE | 39.3 |
Financials & Valuation:
ELGIEQUIP demonstrates strong fundamentals. ROCE (28.4%) and ROE (21.9%) reflect excellent efficiency in capital utilization. EPS of 11.4 ₹ and quarterly PAT growth (99.1 Cr. vs 90.8 Cr.) highlight consistent profitability. Debt-to-equity is extremely low at 0.01, ensuring financial resilience.
Valuation Indicators:
P/E ratio of 47.3 is higher than the industry average (39.3), suggesting premium valuation. Book Value of 57.9 ₹ compared to current price of 554 ₹ indicates significant premium pricing. PEG ratio of 2.03 suggests valuation is stretched relative to growth. Dividend yield of 0.40% provides modest income support.
Business Model & Health:
ELGIEQUIP, a leader in air compressors and industrial equipment, benefits from strong demand in manufacturing and infrastructure. Consistent profitability, low leverage, and rising DII holdings (+1.00%) reinforce overall health, though FII holdings declined (-0.91%).
Entry Zone & Holding Guidance:
Technically, support lies around 530–540 ₹, with resistance near 590–600 ₹. Entry near support levels offers favorable risk-reward. Long-term holding is recommended given strong fundamentals and industry demand, though valuation premium should be monitored.
Positive
- Strong ROCE (28.4%) and ROE (21.9%).
- EPS of 11.4 ₹ with consistent profit growth.
- Very low debt-to-equity (0.01).
- DII holdings increased (+1.00%), showing domestic confidence.
Limitation
- P/E ratio (47.3) above industry average (39.3).
- PEG ratio (2.03) indicates stretched valuation.
- FII holdings declined (-0.91%).
- RSI (62.0) suggests moderately overbought levels.
Company Negative News
- Decline in FII holdings.
- Valuation premium compared to peers.
Company Positive News
- Quarterly PAT improved to 99.1 Cr. from 90.8 Cr.
- DII holdings increased, reflecting domestic institutional support.
- Strong demand outlook in industrial equipment sector.
Industry
- Industrial equipment sector benefits from manufacturing and infrastructure expansion.
- Industry PE (39.3) supports fair valuation benchmarks.
- Long-term demand driven by capital goods and heavy engineering investments.
Conclusion
ELGIEQUIP is fundamentally strong with excellent profitability, low debt, and strong industry positioning. Entry near 530–540 ₹ offers a favorable setup. Long-term investors can hold confidently, supported by industry growth and consistent earnings, while monitoring valuation premium.
Would you like me to extend this into a peer benchmarking overlay comparing ELGIEQUIP against Siemens, ABB India, and Thermax to highlight relative valuation and efficiency positioning within the capital goods sector?