ELGI Equipments Limited (ELGIEQUIP) AI Stock Analysis

• Market Cap: ₹156.03B
• Dividend Yield: 0.47%
• Average Volume (3M): 18.01K
• Price to Earnings (P/E): 39.9
• Beta (1Y): 1.34
• Revenue Growth: 9.46%
• EPS Growth: 18.97%
• Country: IN
• Employees: 2,172
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 3.10
• Shares Outstanding: 316,909,030
• 10 Day Avg. Volume: 15,289
• 30 Day Avg. Volume: 18,009
• PEG Ratio: 3.49
• Price to Book (P/B): 8.10
• Price to Sales (P/S): 4.31
• P/FCF Ratio: 48.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹469.00 ▼(-0.76% Downside)

ELGI Equipments Limited's strong financial performance is the most significant factor, reflecting robust revenue and profit growth. However, technical analysis indicates a neutral to slightly bearish trend, and the high P/E ratio suggests potential overvaluation. The low dividend yield further limits attractiveness for income-focused investors.

Positive Factors

Sustained revenue and profit growth

Consistent revenue and profit expansion indicates durable demand for compressors and effective cost control. Over 2-6 months this supports reinvestment in product development and service networks, improving competitive positioning and enabling scale advantages across diverse industrial end markets.

Strong operating cash flow and positive free cash flow

Reliable operating cash generation and positive free cash flow provide financial flexibility to fund capex, aftermarket expansion, and working capital without excessive external financing. This strengthens resilience across cycles and supports long-term investments and shareholder returns.

Healthy balance sheet with moderate leverage

A strong equity base and moderate debt levels reduce refinancing and solvency risk, enabling strategic spending on capacity, R&D or selective M&A. Improved ROE shows effective capital use, supporting sustainable returns and strategic optionality over the medium term.

Negative Factors

Moderate top-line growth rate

Revenue growth near mid-single digits may limit rapid earnings compounding versus higher-growth industrial peers. Over the next several quarters, modest organic growth raises the burden on margins and aftermarket expansion to drive material EPS improvement and market-share gains.

Business exposure to industrial capex cycles

Core equipment demand is linked to industrial capital spending and replacement cycles, which are inherently cyclical. This structural exposure can cause uneven order flows and margin pressure during extended capex slowdowns, impacting revenue visibility and planning.

Dependence on dealer/distributor channel

Heavy reliance on third-party dealers and service partners can constrain margin capture, limit direct customer relationships, and make service quality uneven. Structurally, this may slow cross-sell of higher-margin aftermarket offerings and hinder rapid execution of strategic product initiatives.

ELGI Equipments Limited Business Overview & Revenue Model

Company Description

Elgi Equipments Limited manufactures and sells air compressors and related parts in India 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 powered portable air compressors; railway air compressors; heat recovery systems; and medical air compressors, as well as air accessories. It is also involved in the trading of air compressors, nitrogen systems, and altitude training systems; manufacture and trading of automotive garage equipment; marketing and sale of vacuum pumps for medical applications; provision of design services; and rental of properties. The company serves manufacturing, textile, pharmaceutical, agriculture, mining, healthcare, automotive, and construction industries. Elgi Equipments Limited was incorporated in 1960 and is based in Coimbatore, India.

How the Company Makes Money

ELGI Equipments generates revenue through the sale of a diverse range of air compressors and related products, including spare parts and maintenance services. The company's primary revenue streams consist of direct sales to end-users and distributors, alongside recurring revenue from service contracts and aftermarket sales for replacement parts. Significant partnerships with distributors and global clients enhance its market reach and sales volume. Additionally, ELGI's focus on innovation leads to the development of advanced, energy-efficient products, which strengthens its competitive positioning and allows for premium pricing in certain segments, thereby contributing to its overall profitability.

ELGI Equipments Limited Financial Statement Overview

Summary

ELGI Equipments Limited exhibits strong financial performance with steady revenue and profit growth, supported by efficient operations and robust cash flows. The balance sheet is strong, reflecting sound financial management and a stable capital structure. The company's financial health is well-maintained, positioning it favorably for future opportunities and challenges in the industrial machinery sector.

Income Statement

ELGI Equipments Limited has demonstrated strong revenue growth over recent years, with a substantial increase in gross profit and net income. The EBIT and EBITDA margins have shown improvement, indicating efficient operations and cost management. The gross profit margin is robust, highlighting effective control over production costs, while the net profit margin suggests healthy bottom-line performance.

Balance Sheet

The company's balance sheet reflects a solid equity position, with a favorable equity ratio indicating financial stability. The debt-to-equity ratio is moderate, suggesting a balanced approach to leveraging. Return on equity has improved, showing effective use of shareholder funds to generate profits. Overall, the balance sheet suggests a stable financial structure with manageable risk.

Cash Flow

The cash flow statements show consistent growth in operating cash flow, underscoring strong cash generation capabilities. Free cash flow has been positive, supporting ongoing investments and financial flexibility. The operating cash flow to net income ratio is healthy, indicating effective conversion of income into cash. Overall, cash flows present a positive outlook with potential for sustaining future growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	35.76B	35.10B	32.18B	30.41B	25.25B	19.26B
Gross Profit	18.00B	17.64B	16.20B	14.71B	11.37B	8.72B
EBITDA	5.20B	5.07B	4.67B	4.13B	2.75B	1.79B
Net Income	3.63B	3.50B	3.12B	3.71B	1.78B	1.02B
Balance Sheet
Total Assets	0.00	30.41B	28.21B	25.02B	19.65B	17.67B
Cash, Cash Equivalents and Short-Term Investments	8.73B	9.10B	7.75B	5.71B	2.80B	3.05B
Total Debt	0.00	5.77B	6.38B	5.77B	4.36B	4.64B
Total Liabilities	-18.66B	11.76B	12.10B	11.30B	9.32B	8.97B
Stockholders Equity	18.66B	18.66B	16.11B	13.71B	10.33B	8.70B
Cash Flow
Free Cash Flow	0.00	3.13B	2.46B	969.11M	280.26M	2.09B
Operating Cash Flow	0.00	4.08B	2.95B	1.66B	685.62M	2.40B
Investing Cash Flow	0.00	-3.31B	-1.39B	-2.17B	19.03M	-1.10B
Financing Cash Flow	0.00	-1.85B	-519.37M	598.20M	-812.10M	-482.19M

ELGI Equipments Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 472.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ELGIEQUIP, the sentiment is Positive. The current price of 472.6 is above the 20-day moving average (MA) of 440.57, above the 50-day MA of 465.85, and below the 200-day MA of 492.99, indicating a neutral trend. The MACD of -1.16 indicates Negative momentum. The RSI at 65.97 is Neutral, neither overbought nor oversold. The STOCH value of 84.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ELGIEQUIP.

ELGI Equipments Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRITURBINE	69 Neutral	₹161.81B	50.99	―	0.75%	3.49%	8.54%
ELGIEQUIP	66 Neutral	₹156.03B	39.94	―	0.47%	9.46%	18.97%
INGERRAND	66 Neutral	₹110.18B	41.37	―	2.34%	5.68%	9.74%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KIRLPNU	60 Neutral	₹74.52B	39.45	―	0.97%	6.51%	-1.61%
KSB	59 Neutral	₹125.09B	47.69	―	0.51%	9.50%	14.52%
ISGEC	58 Neutral	₹59.19B	29.59	―	0.59%	-4.14%	-35.66%