ELGIEQUIP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | ELGIEQUIP | Market Cap | 17,753 Cr. | Current Price | 560 ₹ | High / Low | 608 ₹ |
| Stock P/E | 47.9 | Book Value | 57.9 ₹ | Dividend Yield | 0.39 % | ROCE | 28.4 % |
| ROE | 21.9 % | Face Value | 1.00 ₹ | DMA 50 | 527 ₹ | DMA 200 | 508 ₹ |
| Chg in FII Hold | -0.91 % | Chg in DII Hold | 1.00 % | PAT Qtr | 99.1 Cr. | PAT Prev Qtr | 90.8 Cr. |
| RSI | 59.1 | MACD | 7.53 | Volume | 2,20,229 | Avg Vol 1Wk | 5,43,204 |
| Low price | 408 ₹ | High price | 608 ₹ | PEG Ratio | 2.06 | Debt to equity | 0.01 |
| 52w Index | 75.8 % | Qtr Profit Var | 23.7 % | EPS | 11.4 ₹ | Industry PE | 40.0 |
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Fundamental Rating: 4.1
📊 Financials: ELGIEQUIP shows strong fundamentals. Quarterly PAT rose to 99.1 Cr from 90.8 Cr, reflecting consistent earnings growth. ROCE at 28.4% and ROE at 21.9% highlight excellent efficiency and profitability. EPS stands at 11.4 ₹, supporting healthy earnings. Debt-to-equity is extremely low at 0.01, indicating a virtually debt-free balance sheet and strong cash flow position.
💰 Valuation: The stock trades at a P/E of 47.9, higher than the industry average of 40.0, suggesting premium valuation. Book value is 57.9 ₹, with current price at 560 ₹, implying a P/B ratio of ~9.7. PEG ratio of 2.06 indicates valuation is stretched relative to growth. Intrinsic value appears lower than current levels, suggesting the stock is slightly overvalued.
⚙️ Business Model & Health: ELGIEQUIP operates in industrial compressors and equipment, with strong global presence and brand recognition. Competitive advantage lies in innovation, diversified product offerings, and leadership in compressed air solutions. Overall health is excellent, supported by profitability, strong returns, and minimal debt.
📈 Entry Zone: RSI at 59.1 indicates mildly overbought levels. Support is near 520 ₹, resistance at 608 ₹. Entry around 520–540 ₹ offers a favorable long-term opportunity. Long-term holding is attractive given strong fundamentals, but investors should be cautious of stretched valuations.
Positive
- ⚙️ [Market Leadership](ca://s?q=ELGIEQUIP_market_leadership): Strong global presence in compressors and equipment.
- 📈 [Profitability](ca://s?q=ELGIEQUIP_profitability): High ROCE (28.4%) and ROE (21.9%).
- 💸 [Low Debt](ca://s?q=ELGIEQUIP_debt_levels): Debt-to-equity ratio of 0.01 ensures financial stability.
Limitation
- 📉 [Valuation](ca://s?q=ELGIEQUIP_valuation): P/E and P/B ratios are higher than peers.
- ⚠️ [Growth Valuation](ca://s?q=ELGIEQUIP_growth_valuation): PEG ratio of 2.06 suggests stretched valuation relative to growth.
- 📊 [FII Outflow](ca://s?q=ELGIEQUIP_FII_outflow): Foreign investors reduced holdings by -0.91%.
Company Negative News
- 📉 [FII Reduction](ca://s?q=ELGIEQUIP_FII_reduction): Decline in foreign institutional holdings.
Company Positive News
- 📈 [DII Support](ca://s?q=ELGIEQUIP_DII_support): Domestic institutions increased holdings by 1.00%.
- 💹 [Profit Growth](ca://s?q=ELGIEQUIP_profit_growth): PAT rose to 99.1 Cr from 90.8 Cr.
Industry
- 🏭 [Industrial Growth](ca://s?q=Indian_industrial_growth): Sector expanding with infrastructure and manufacturing demand.
- 📊 [Industry PE](ca://s?q=Industrial_equipment_PE): Sector average P/E is 40.0, lower than ELGIEQUIP’s valuation.
Conclusion
✅ ELGIEQUIP demonstrates strong fundamentals, profitability, and minimal debt, making it a fundamentally sound investment. While valuations are stretched, growth prospects and industry demand justify partial premium. Entry around 520–540 ₹ is favorable, and long-term holding is recommended given the company’s resilience and sector outlook.