Elgi Equipments
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Elgi Equipments is currently navigating a robust demand environment, particularly in India, while strategically addressing cost pressures and international restructuring. Management has articulated a clear focus on long-term margin expansion, targeting 18% by FY31, supported by the rollout of its 'Demand Match' technology and a strategic push into the Tier-4 compressor market. This is crucial as it positions the company to counter low-cost competition effectively. Despite facing near-term challenges from raw material inflation and operational inefficiencies in certain regions, the company's recent financial performance, highlighted by a 12% revenue increase and a 17% rise in Profit Before Tax in Q4 FY26, underscores its operational effectiveness. Vista's financial outlook reflects stable revenue growth and margins, aligning with management's positive tone and strategic initiatives. The industrial equipment sector's improving pricing power and stable operational environment further bolster this outlook. Over the next 12-24 months, key opportunities include successful execution of restructuring efforts and expansion into new markets, while watchpoints include commodity price volatility and geopolitical uncertainties affecting profitability
Why We Like This Stock
- Management's focus on long-term margin expansion to 18% by FY31 supports a positive growth trajectory
- Recent financial performance indicates strong market demand and effective operational strategies
- The company's strategic push into the Tier-4 compressor market enhances its competitive position
Things To Watch Out For
- Raw material inflation and US tariffs pose significant headwinds to profitability
- Operational inefficiencies in Australia and Southeast Asia could impact overall performance
- Geopolitical uncertainties may affect order conversion and market stability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,218 | 3,510 | 3,951 | 4,300 | 4,770 |
| Profit Before Tax (Cr.) | 433 | 480 | 592 | 669 | 736 |
| PBT Margin | 13.5% | 13.7% | 1498.4% | 15.6% | 15.4% |
| Net Profit (Cr.) | 307 | 349 | 434 | 494 | 543 |
| Earnings Per Share | 9.7 | 11.0 | 13.7 | 15.6 | 17.1 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Prabhudas Liladhar | ► Accumulate | 638 | 17-Aug-2026 |
Company Overview
Show Company Profile
Elgi Equipments Limited manufactures and sells air compressors and related parts in India, Europe, Australia, the United States, and internationally. It operates through two segments, Air Compressors and Automotive Equipments. The company offers oil lubricated screw and piston air compressors, oil free piston and screw air compressors, rotary and reciprocating air compressors, diesel and electric portable air compressors, railway air compressors, heat recovery systems, and medical air compressors and vacuum pumps, as well as air accessories; air compressor parts, filters and separators, lubricants and fluids, and service kits, and other accessories; and air compressor service. It is also involved in the trading of air compressors, nitrogen systems, and altitude training systems; manufacture and trading of automotive garage equipment, compressed air systems, and vacuum pumps for medical applications; renting of property; and provision of design services. In addition, the company manufactures and trades compressors, hydraulic hammers, and rampi cars. The company serves manufacturing, textile, agriculture, automotive, and construction industries. Elgi Equipments Limited was incorporated in 1960 and is based in Coimbatore, India.