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 39.04%
- 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 4 consecutive quarters
- DEBTORS TURNOVER RATIO(HY) Highest at 6.05 times
- NET SALES(Q) Highest at Rs 1,003.40 cr
- PBT LESS OI(Q) At Rs 119.40 cr has Grown at 22.73%
3
With ROE of 19.4, it has a Expensive valuation with a 7.4 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 -1.35%, its profits have risen by 28% ; the PEG ratio of the company is 1.3
4
High Institutional Holdings at 31.19%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -1.35% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
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, Medium Return
Absolute
Risk Adjusted
Volatility
Elgi Equipments
-1.62%
-0.04
37.20%
Sensex
-2.42%
-0.18
12.70%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.72%
EBIT Growth (5y)
39.04%
EBIT to Interest (avg)
16.60
Debt to EBITDA (avg)
1.45
Net Debt to Equity (avg)
-0.17
Sales to Capital Employed (avg)
1.52
Tax Ratio
27.03%
Dividend Payout Ratio
19.91%
Pledged Shares
0.88%
Institutional Holding
31.19%
ROCE (avg)
22.61%
ROE (avg)
20.46%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
36
Industry P/E
31
Price to Book Value
7.41
EV to EBIT
30.64
EV to EBITDA
26.20
EV to Capital Employed
8.68
EV to Sales
3.79
PEG Ratio
1.28
Dividend Yield
0.47%
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
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 6.05 times
NET SALES(Q)
Highest at Rs 1,003.40 cr
PBT LESS OI(Q)
At Rs 119.40 cr has Grown at 22.73%
PAT(Q)
At Rs 106.28 cr has Grown at 31.9%
-1What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Elgi Equipments
Net Sales - Quarterly
Highest at Rs 1,003.40 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 119.40 cr has Grown at 22.73%
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 106.28 cr has Grown at 31.9%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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