ScoreWhy is Elgi Equipments Ltd ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 20.46%
- Healthy long term growth as Operating profit has grown by an annual rate 47.75%
- Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.40 times
2
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CF(Y) Highest at Rs 390.90 Cr
- PAT(Latest six months) At Rs 207.00 cr has Grown at 23.57%
- DEBTORS TURNOVER RATIO(HY) Highest at 6.05 times
3
With ROE of 19.4, it has a Very Expensive valuation with a 7.7 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -23.18%, its profits have risen by 18.9% ; the PEG ratio of the company is 2.1
4
High Institutional Holdings at 32.36%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 1.92% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -23.18% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Elgi Equipments should be less than 10%
- Overall Portfolio exposure to Compressors, Pumps & Diesel Engines should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Compressors, Pumps & Diesel Engines)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Elgi Equipments for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Elgi Equipments
-23.23%
-0.60
38.81%
Sensex
4.67%
0.40
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.89%
EBIT Growth (5y)
47.75%
EBIT to Interest (avg)
16.53
Debt to EBITDA (avg)
1.45
Net Debt to Equity (avg)
-0.17
Sales to Capital Employed (avg)
1.52
Tax Ratio
27.27%
Dividend Payout Ratio
19.91%
Pledged Shares
0.67%
Institutional Holding
32.36%
ROCE (avg)
22.61%
ROE (avg)
20.46%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
40
Industry P/E
34
Price to Book Value
7.73
EV to EBIT
33.56
EV to EBITDA
28.65
EV to Capital Employed
9.07
EV to Sales
4.13
PEG Ratio
2.11
Dividend Yield
0.45%
ROCE (Latest)
27.02%
ROE (Latest)
19.40%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
OPERATING CF(Y)
Highest at Rs 390.90 Cr
PAT(Latest six months)
At Rs 207.00 cr has Grown at 23.57%
DEBTORS TURNOVER RATIO(HY)
Highest at 6.05 times
EPS(Q)
Highest at Rs 3.83
-1What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Elgi Equipments
Operating Cash Flow - Annually
Highest at Rs 390.90 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 121.40 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 121.40 cr has Grown at 28.2%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 3.83
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Highest at 6.05 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Elgi Equipments
Non Operating Income - Quarterly
Highest at Rs 51.40 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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