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ELGIEQUIP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | ELGIEQUIP | Market Cap | 13,856 Cr. | Current Price | 439 ₹ | High / Low | 608 ₹ |
| Stock P/E | 39.4 | Book Value | 57.9 ₹ | Dividend Yield | 0.50 % | ROCE | 28.4 % |
| ROE | 21.9 % | Face Value | 1.00 ₹ | DMA 50 | 459 ₹ | DMA 200 | 495 ₹ |
| Chg in FII Hold | -3.01 % | Chg in DII Hold | 1.84 % | PAT Qtr | 90.8 Cr. | PAT Prev Qtr | 81.5 Cr. |
| RSI | 46.5 | MACD | -11.4 | Volume | 2,63,725 | Avg Vol 1Wk | 3,78,176 |
| Low price | 390 ₹ | High price | 608 ₹ | PEG Ratio | 1.69 | Debt to equity | 0.01 |
| 52w Index | 22.3 % | Qtr Profit Var | -7.24 % | EPS | 11.1 ₹ | Industry PE | 36.0 |
📊 Core Financials
- Revenue growth: Stable, with PAT at 90.8 Cr vs 81.5 Cr in previous quarter, though quarterly variation shows -7.24 %.
- Profit margins: Healthy, EPS at 11.1 ₹ indicates consistent earnings.
- Debt ratios: Excellent, debt-to-equity at 0.01 shows negligible leverage.
- Cash flows: Supported by strong profitability and minimal debt burden.
- Return metrics: ROCE 28.4 %, ROE 21.9 % — strong efficiency and shareholder returns.
💹 Valuation Indicators
- P/E ratio: 39.4, slightly above industry average (36.0), suggests premium valuation.
- P/B ratio: Current Price / Book Value ≈ 7.6, expensive relative to assets.
- PEG ratio: 1.69, indicates valuation is stretched relative to growth.
- Intrinsic value: Fair but leaning toward overvaluation given current multiples.
🏢 Business Model & Competitive Advantage
- Operates in air compressor and industrial equipment manufacturing.
- Strong global presence with diversified product portfolio.
- Competitive advantage through technology, brand reputation, and low debt structure.
📈 Entry Zone & Long-Term Guidance
- Entry zone: Attractive near 390–410 ₹ levels, close to 52-week low.
- Long-term holding: Favorable due to strong ROE/ROCE and negligible debt; suitable for investors seeking industrial growth exposure, though valuation is slightly premium.
Positive
- Strong ROCE (28.4 %) and ROE (21.9 %).
- Negligible debt-to-equity ratio (0.01).
- Consistent profitability with EPS at 11.1 ₹.
- DII holdings increased (+1.84 %).
Limitation
- P/E ratio above industry average, suggesting premium valuation.
- P/B ratio at 7.6 indicates expensive valuation relative to assets.
- PEG ratio at 1.69 shows stretched valuation compared to growth.
Company Negative News
- Quarterly profit variation negative (-7.24 %).
- FII holdings decreased (-3.01 %).
- Technical indicators weak: MACD negative, RSI at 46.5 (neutral zone).
Company Positive News
- Quarterly PAT improved sequentially (90.8 Cr vs 81.5 Cr).
- Strong fundamentals with high ROE and ROCE.
- Low debt ensures financial stability.
Industry
- Industrial equipment sector benefiting from infrastructure and manufacturing expansion.
- Industry PE at 36.0, slightly lower than ELGIEQUIP’s P/E, suggesting relative premium valuation.
Conclusion
- ELGIEQUIP demonstrates strong fundamentals with high efficiency and negligible debt.
- Valuation is slightly stretched compared to industry peers, but supported by consistent profitability and brand strength.
- Entry advisable near lower support levels; long-term holding recommended for investors seeking exposure to industrial equipment growth.
Would you like me to extend this into a comparative HTML snapshot against peers like Ingersoll Rand and Kirloskar Pneumatic to highlight ELGIEQUIP’s relative valuation and strengths?