Elgi Equipments Ltd.
NSE: ELGIEQUIPElgi Equipments Ltd.: A 30-second snapshot
Elgi Equipments is an industrial compressor manufacturer trading at ₹523 with a trailing PE of 40.9x and a forward PE of 33.8x, sitting above both its 50-DMA (₹516) and 200-DMA (₹496). The stock has returned 13.9% over the past 12 months on the back of 5-year revenue and earnings CAGRs of 18.4% and 18.2% respectively, with a profit margin of 10.6% and a consistency score of 77 out of 100. Debt-to-equity of 26.3 with a rising debt trend is the most material balance-sheet watchpoint in an otherwise growth-consistent profile.
P/E
40.9
Forward P/E
33.8
ROE
—
Debt / Equity
26.27
Profit Margin
+10.6%
Div. Yield
+0.4%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
61/100
News
1 headlines · 0 positive · 0 negative
Recent context
- ·The only news article retrieved in the sentiment window is a third-party sector roundup that does not concern ELGIEQUIP directly; stock-specific catalysts and management commentary are not available from the current dataset.
- ·The forward PE of 33.8x versus trailing PE of 40.9x implies the market is pricing in approximately 20% earnings growth over the next 12 months, consistent with the company's 5-year historical earnings CAGR of 18.2%.
- ·ELGIEQUIP has appreciated 13.9% over 12 months and 5.2% over 3 months, outperforming the context of a 14% drawdown from its 52-week high of approximately ₹609, with near-term resistance identified at ₹527 and ₹553.
Strengths
- +5-year revenue CAGR of 18.4% and earnings CAGR of 18.2% reflect sustained top-line and bottom-line expansion over a multi-year horizon, rather than a single-year spike.
- +FCF was positive in 4 of the measured years and the consistency score stands at 77/100, indicating a degree of earnings quality and operational predictability above mid-pack.
- +At a trailing PE of 40.9x and forward PE of 33.8x, ELGIEQUIP trades at a substantial discount to infrastructure-sector peers ABB India (86.8x) and CG Power (108.5x), placing it among the lower-PE names in the group (ranked 2nd of 6).
- +Price is above both the 50-DMA (₹516) and 200-DMA (₹496) with RSI at 45 in neutral territory; the 14% drawdown from the 52-week high implies the stock has already partially corrected from its peak without breaching medium-term moving averages.
Weaknesses
- −Debt-to-equity of 26.3 is on a rising trend within the persistence window; for a non-financial industrial manufacturer, sustained leverage increase alongside capital deployment warrants monitoring against free cash flow generation.
- −ROE data is unavailable, preventing a direct assessment of return on equity — a critical metric for evaluating capital efficiency in a capital-intensive machinery business. FCF-positive in 4 of the measured years is the only available proxy.
- −Quality score of 45/100 ranks ELGIEQUIP 3rd of 6 in the Infrastructure peer set, below BEL (57) — indicating that despite above-average growth, structural quality metrics have not kept pace relative to sector peers.
- −Analyst coverage is sparse at 4 analysts with no consensus rating available, and the news module returned a single irrelevant headline, leaving both sell-side and news-flow signals effectively absent for this stock.
Open questions
- ?Does the rising debt-to-equity trend reflect investment in capacity for future growth, or does it signal structural working-capital strain — and what does free cash flow conversion look like relative to reported earnings growth?
- ?How much of ELGIEQUIP's 5-year earnings CAGR of 18.2% is attributable to domestic infrastructure capex cycles versus export revenue, and how exposed is the business to a slowdown in either channel?
- ?Given that ELGIEQUIP's PE of 40.9x is well below ABB India (86.8x) and CG Power (108.5x) despite comparable growth, what accounts for the persistent valuation gap — is it sector classification, business model differences, or lower margins?
- ?With only 4 analyst estimates available and no consensus rating on record, how does the limited sell-side coverage affect price discovery, and what events have historically driven re-rating of this stock?
Peer comparison: Infrastructure
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ELGIEQUIP | Elgi Equipments Ltd.You're viewing | 40.9 | — | 45 |
| Industry avg | across 5 peers | 69.4 | +18.3% | 40 |
| BEL | Bharat Electronics Ltd. | 51.9 | — | 57 |
| ABB | ABB India Ltd. | 86.8 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 108.5 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.4 | +16.9% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.5 | — | 24 |
Technical state
Current price
₹523.25
SMA 50
₹515.84
SMA 200
₹496.43
RSI (14)
45.2 (neutral)
From 52w high
-14.0%
1Y return
+13.9%
3M return
+5.2%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumDebt-to-equity of 26.3 with a rising debt trend over the persistence window is elevated for a capital-goods manufacturer; 5-year earnings growth of 18.2% has not converted into a quality score above 45/100, indicating execution risk on capital deployment.
- mediumROE is unavailable in the dataset; analyst rating is also absent (count: 4, no consensus score). These two gaps together leave return-on-equity persistence and sell-side directional signal unassessable for this stock.
- lowNews module returned only 1 article (neutral) for ELGIEQUIP. This is below the minimum threshold for a reliable sentiment signal; the single headline does not directly concern ELGIEQUIP.
- low3 of 5 named peers are missing ROE data and 4 of 5 are missing 1-year price-change data, restricting the reliability of the sector relative-quality ranking (3rd of 6 on quality score).
Cross-section contradictions
- 5-year revenue and earnings CAGR of 18.4% and 18.2% rank above most infrastructure peers, yet quality score of 45 places ELGIEQUIP 3rd of 6 in the peer set — growth has not yet translated into proportionally higher structural quality.
- ELGIEQUIP trades at a PE of 40.9x, sitting well below sector peers ABB India (86.8x) and CG Power (108.5x), despite posting comparable or superior multi-year earnings growth rates — creating a visible valuation gap relative to sector peers that has not yet closed.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days