Elgi Equipments Ltd Leads Gainers in ‘A’ Group with Strong Market Performance
Business and Industry Overview:
Elgi Equipments Ltd is an Indian company that makes air compressors. These machines provide pressurized air for different industries. Factories, hospitals, garages, and construction sites use them to run machines, power tools, and perform important tasks. The company started in 1960 in Coimbatore, Tamil Nadu. Today, it is a global leader in air compressors and sells products in more than 120 countries. It has a large range of over 400 products for different needs.
Elgi makes different types of air compressors. Reciprocating compressors are used for small jobs like workshops. Rotary screw compressors are used in big industries. Oil-free compressors are used in hospitals and food factories where clean air is important. The company also makes centrifugal compressors, dryers, filters, vacuum solutions, and accessories that help air compressors work better and last longer.
Elgi is known for its high quality, new technology, and strong customer support. It focuses on energy-saving and cost-effective machines that help businesses reduce costs and increase efficiency. The company follows seven core values: innovation, quality, speed, collaboration, integrity, cost management, and sensitivity to customer needs.
Elgi also helps society by supporting education and skill training. It runs the ELGi School in Coimbatore, which educates 1,400 underprivileged students. The company also has training programs for young people from villages to help them get jobs in manufacturing.
Elgi cares about the environment. It makes oil-free and energy-efficient compressors to reduce pollution and save energy. It also turns its factories and offices into green spaces to help the planet.
Elgi’s goal is to become the top air compressor company in the world. Its vision is clear: “Always be the choice everywhere.”
The air compressor industry is growing fast because many businesses need compressed air. Air compressors are used to run machines, power tools, fill gas cylinders, and pack food. They are important for factories, hospitals, farms, garages, and construction sites. In India, this market will reach $995 million by 2030 and grow 5.2% yearly. More factories, LPG production, air conditioners, and packaged food are increasing demand.
Air compressors help in many ways. They are used for vacuum sealing food, spray painting, breaking roads, farming, and medical tools. Many big companies making s like Atlas Copco, Ingersoll Ran, Kirloskar, ELGi Equipments, and Hitachi make air compressors. Portable, compressors are popular because they are easy to carry and save power. New smart compressors use sensors to save energy and reduce maintenance costs. Some companies, like Atlas Copco, make eco-friendly compressors that run on electricity instead of diesel to reduce pollution.
The industry has some problems like high electricity costs, strict pollution rules, and strong competition. But with better technology and energy-saving designs, the market will keep growing as industries expand.
ELGi Equipments makes air compressors. It has been in business for over 64 years. The company sells its products in 120+ countries. It competes with big brands like Atlas Copco and Ingersoll Rand. ELGi makes strong, energy-saving, and affordable compressors. It offers different types of compressors, like oil-free, oil-lubricated, rotary screw, and centrifugal compressors. ELGi focuses on new technology and eco-friendly products. It helps industries save money and energy. The company has a good service network to help customers quickly. It is expanding in North America, Europe, and other countries. ELGi wants to grow by making better compressors and increasing production. Even with competition, people trust ELGi because of its good quality and customer service.
Latest Stock News:
Elgi Equipments Ltd’s stock saw a strong rise in price and trading volume. The stock jumped over 15% to ₹512.05 per share due to high investor interest. At 11:48 AM, it was up 7.76% to ₹478.35, making it the top gainer in the BSE ‘A’ group. On BSE, around 1.38 lakh shares were traded, which is much higher than the average daily trading of 14,446 shares in the past month. This shows a big increase in buying activity.
On NSE, the stock saw an even bigger surge in trading volume. By 2:14 PM, about 87.9 lakh shares were traded. This is a massive 19.82 times, a massive 19.82-fold jump from 4.43 lakh shares. The sharp rise in price and volume suggests strong demand from investors, possibly due to positive news, strong financial performance, or market optimism about the company’s future growth.
Potentials:
Elgi Equipments wants to grow and sell its air compressors in more countries. The company will make better and energy-saving compressors. These machines will help save electricity and reduce costs. More businesses will use oil-free compressors because they cause less pollution and follow government rules.
In 2025, ELGi will launch a new system called STABILISOR. This will help compressors run smoothly, use less energy, and save money. The company will also make new and improved compressors that help businesses work better and spend less.
Elgi Equipments wants to be a top company in making air compressors. It will focus on making strong, smart, and eco-friendly machines. The company will continue to create new products that help industries work faster, save money, and protect the environment.
Analyst Insights:
- Market capitalisation: ₹ 16,078 Cr.
- Current Price: ₹ 507
- 52-Week High/Low: ₹ 799 / 412
- Stock P/E: 49.6
- Dividend Yield: 0.40 %
- Return on Capital Employed (ROCE): 22.3 %
- Return on Equity: 20.6 %
Elgi Equipments Ltd has shown steady growth, with revenue increasing from ₹1,125 Cr in FY13 to ₹3,218 Cr in FY24, growing at 9% CAGR over 10 years and 19% CAGR in the last three years. Profits have also surged, rising at 21% CAGR over 10 years and 44% CAGR in the past three years, reflecting strong business expansion. The company is debt-free, has a healthy ROCE of 22.3% and ROE of 20.6%, and offers a 19.3% dividend payout, making it a stable investment. However, the stock’s P/E ratio of 49.6x is high compared to Ingersoll-Rand (41.85x) and Kirloskar Pneumatic (37.69x), making it expensive. Also, profit declined by 20% in the latest TTM period, raising short-term concerns. While the company has strong fundamentals, the valuation is stretched. We recommend holding the stock for now but buying if it dips to ₹450 for a better entry point.