📅 EduInvesting.in | May 13, 2025
🛠️ Ticker: ELGIEQUIP | Sector: Capital Goods (Industrial Air Compressors)
💬 Tagline: “Sabko hawa dete hain. Literally.”
🎬 Intro: When You Compress Air for a Living, But Your Stock is Ready to Expand
Most people don’t even know what Elgi Equipments does.
Let’s make it simple:
“They sell industrial air compressors.
And business is blowing up. (Pun intended)”
🧾 FY24 Performance – “Chota packet, bada compression”
| Metric | FY24 | FY23 | YoY Growth |
|---|---|---|---|
| Revenue | ₹3,123 Cr | ₹2,721 Cr | +14.8% |
| EBITDA | ₹519 Cr | ₹450 Cr | +15.3% |
| Net Profit | ₹325 Cr | ₹275 Cr | +18.2% |
| EBITDA Margin | 16.6% | 16.5% | Stable AF |
| ROE | 17.4% | 15.8% | 👍 |
📈 Basically: They’re selling more, making more, and margins are holding strong like a German pump.
🌍 What’s Cooking at Elgi?
- 🧯 Domestic Infra Boom → More factories = more compressors
- 🌏 Global Expansion → Strong traction in US, Europe, South East Asia
- 🌱 Energy-efficient models → Going green and saving customers power bills
- 🧠 In-house tech → They’re not just assembling. They’re engineering.
💸 Balance Sheet Flex
| Metric | Value |
|---|---|
| Market Cap | ₹11,000 Cr approx |
| Debt-to-Equity | 0.2x |
| Cash Reserves | ₹500+ Cr |
| Promoter Holding | 31.5% |
| Institutional Hold | 38% |
“Not too much debt, not too much noise. Just enough power to keep chugging.”
📈 Stock Price Movement
| Period | Return % |
|---|---|
| 1 Month | +4.5% |
| 6 Months | +19.6% |
| 1 Year | +41% |
| From 52W Low | +58% |
💥 CMP: ~₹345 | 52W High: ₹360+
Poised for breakout or chilling near resistance like an introvert at a party.
🧠 Why Investors Should Watch This:
✔️ Consistent margin business
✔️ Low capex but scalable
✔️ One of two serious compressor players in India (other: Atlas Copco)
✔️ Riding ‘Make in India’ + Manufacturing Boom
✔️ Silent compounder energy — not flashy, just delivers
🧨 Risks to Keep an Eye On:
- 🌐 Global slowdown = fewer industrial orders
- 🔧 Capex delays in auto/textile/infrastructure = short-term demand dip
- 🥶 It’s still a boring capital goods stock = won’t give Zomato-type highs or heartbreaks
🎯 EduInvesting Fair Value (FY25 Estimate):
- Projected EPS: ₹11.5
- Assumed PE: 30x (given quality + niche + growth)
- 🎯 Fair Value = ₹345 (fair) to ₹400+ (bull case)
Currently near FV, but if manufacturing theme stays hot, this could quietly keep compounding.
🧘♂️ EduInvestor Verdict
Elgi isn’t for the “jaldi double chahiye” crowd.
It’s for the “let’s quietly 4x in 5 years while others chase noise” squad.
If you love:
✅ Clean balance sheets
✅ Consistent profit growth
✅ Manufacturing theme
✅ Sleep-well-at-night investing
…then Elgi Equipments deserves a long-term parking spot in your portfolio.
