Buy Elgi Equipments: IIFL Securities's Target Price Rs 750

IIFL Securities recommends buying Elgi Equipments at the current market price of Rs 721, with a target price of Rs 750. Elgi Equipments is one of the leading air compressor manufacturers in India, with a strong presence in the automotive, engineering, and textile industries. The company has been witnessing strong growth in its export business and is expected to benefit from the increasing demand for air compressors in various end-user industries.

About Elgi Equipments:

Elgi Equipments Limited, listed on the National Stock Exchange (NSE), is a leading manufacturer of compressed air systems and solutions. Founded in 1968, the company has a strong presence in over 100 countries. Elgi offers a wide range of products, including air compressors, dryers, filters, and accessories. The company's products are used in various industries, such as automotive, textile, food and beverage, and pharmaceuticals. Elgi is committed to innovation and has a strong R&D team. The company is known for its energy-efficient and eco-friendly products.

52 Week Price Trend:

Elgi Equipments (NSE:ELGIEQUIP) is currently trading at Rs 721, hovering near its 52-week high of Rs 703.95. The stock has witnessed a remarkable rally, gaining over 73% in the past year, outperforming the broader market. Despite recent market volatility, Elgi Equipments has maintained a strong uptrend, supported by factors such as expanding market share in air compressor and vacuum technology, new product launches, and strategic acquisitions. With its robust fundamentals and growth potential, Elgi Equipments remains a promising investment opportunity, particularly for investors seeking exposure to the industrial sector.

Stratzy's MOST Analysis:

ELGIEQUIP has received a BB rating from Stratzy's MOST framework. This rating indicates that the company possesses medium fundamental risks. The rating is based on the assessment of the company's management, outlook, safety, and trend. The BB rating suggests that ELGIEQUIP has a stable and experienced management team, a positive outlook for the future, strong safety measures in place, and a favorable trend in its financial performance.

Company's Fundamentals:

Elgi Equipments (NSE: ELGIEQUIP) currently has a stock PE ratio of 48.57, which means that investors are willing to pay 48.57 times the company's annual earnings per share for its stock. The stock PB ratio of 13.48 indicates that investors are willing to pay 13.48 times the company's book value per share for its stock. Elgi Equipments' dividend yield of 0.32% represents the annual dividend paid to shareholders as a percentage of the stock's current market price. This yield indicates a relatively low dividend payout compared to the company's earnings.

Fundamental and Technical information provided in this blog were last updated on 20 Jun, 2024

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