IIFL Securities Stock Market Watch Today: Buy Elgi Equipments - June 20

IIFL Securities issued a buy recommendation for Elgi Equipments on June 20, with a target price of Rs 750, indicating a potential upside of approximately 4%. The current market price of Elgi Equipments is Rs 722.1, suggesting that the stock may be undervalued. Investors may consider acquiring Elgi Equipments shares to profit from the potential appreciation in value as it approaches the target price.

About Elgi Equipments:

Elgi Equipments, listed on NSE, is a global manufacturer of air compressors, vacuum systems, and industrial automation solutions. The company offers a wide range of products and services, including compressors for various industries such as manufacturing, automotive, and construction. Elgi has a strong international presence with operations in over 100 countries and manufacturing facilities in India, the United States, and Europe. The company's commitment to innovation and customer satisfaction has earned it numerous awards and recognition. Elgi Equipments is actively involved in sustainability initiatives, promoting energy efficiency and reducing environmental impact.

52 Week Price Trend:

Elgi Equipments, currently trading at Rs. 722.1, has witnessed a substantial surge from its 52-week low of Rs. 416.5, indicating strong investor sentiment. Despite falling slightly below its 52-week high of Rs. 703.95, the stock remains well-positioned, suggesting potential for further growth. The company's robust financial performance and positive industry outlook contribute to its attractiveness among investors.

Stratzy's MOST Analysis:

Based on Stratzy's MOST framework, ELGIEQUIP has received a "BB" rating. This indicates a medium level of fundamental risk. The MOST framework assesses four key pillars: Management, Outlook, Safety, and Trend. ELGIEQUIP's rating reflects a balanced evaluation of these factors, suggesting that the company has both strengths and areas for improvement in terms of its financial stability, growth prospects, risk management, and overall market position.

Company's Fundamentals:

Elgi Equipments (NSE: ELGIEQUIP) is a leading global manufacturer of air compressors and industrial vacuum solutions. Its financials indicate a Stock PE of 48.57, signifying a slightly high valuation relative to its earnings. The PB Ratio of 13.48 suggests the company's market value is significantly higher than its book value, implying a premium valuation. However, the low Dividend Yield of 0.32% indicates that the company primarily reinvests its profits for growth, rather than distributing them as dividends to shareholders.

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

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