IP
IndiaPulse

Elgi Equipments Limited (ELGIEQUIP)

Large Cap

Industrials stocks · Large cap · NSE

Elgi Equipments Limited manufactures compressors and automotive equipment. The company operates in over 120 countries, with a direct presence in 28 countries and manufacturing facilities in 3, indicating a significant global footprint in its core segments.

₹642.1
+11.75 · +1.86%
Quote04 Sept, 03:58 pm IST
Fundamentals05 Sept 2026 · screener
Score05 Sept, 10:20 pm IST · v4.3-runtime-valuation
Tags02 May 2026
Coverage14/14 · 100%
Valuation2026-07-20 · Rf 6.8% · Industrials P/E 26.4 (n=540)
Data confidence
Fresh enough for analysis
Investor decision lenses

One read, four checks

75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.

Mixed fundamentals, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.

Suggested next step
Momentum only
Trend is strong but fundamentals do not support a clean investment thesis.
Weak U-Score but strong trend: momentum may be ahead of fundamentals.
U-Score
FAIR VALUE
49

Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.

Trust
Healthy Trust
83

low confidence · 0/0 claims checked

Technical
Bullish
70

Timing lens: price trend and sector relative strength.

Result consistency
consistent
95

Rolling lens: recent quarterly delivery, not the latest single-result score.

Latest result

Quarter ended 30 Jun 2026

Good · 65/100

Rev +22% YoY · PAT +20% YoY · margin expansion

Filed 13 Aug 2026
Open results browser →
MetricThis quarterYoYQoQ
Revenue₹1,062 Cr+22.5%-4.6%
EBITDA₹155 Cr+28.1%-10.4%
Operating margin15.0%+100 bps-100 bps
PAT₹103 Cr+19.8%-19.5%
PAT margin9.7%-22 bps-180 bps

NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.

Business & thesis

Growth engines, tailwinds/headwinds, and risk radar from management commentary

Business and thesis

Where growth can come from, and what can break the case

Thesis under stressReviewed 2026-06-12T08:25:21.905Z
Management commentary snapshot

ELGIEQUIP reported 12% YoY revenue growth and 17% YoY PBT growth in Q4 FY26, but EBITDA was significantly impacted by adverse product mix, tariff effects, and higher employee and other expenses.

While the company achieved strong top-line and PBT growth YoY, the core profitability, as reflected in EBITDA, was pressured by unfavorable product mix, tariff impacts, and substantial increases in employee and other operating costs. This indicates challenges in maintaining margin efficiency despite sales momentum.

Growth engines

International Market Presence

ELGi does business in 120+ countries, with direct presence in 28 and manufacturing presence in 3, indicating a broad global reach.

Revenue Momentum

Sales grew by 12% in Q4 FY26 over the previous year, demonstrating continued top-line expansion.

Capacity and execution

North America Leases

Three leases were added in North America, contributing to Q4 vs Q3 changes.

Headwinds

Product Mix Impact on Contribution

Contribution was impacted due to product mix in Q4 FY26.

Tariff Impact

Contribution was impacted due to tariff, with a 1.2% tariff impact against Q4 FY25.

Increased Employee Costs

Employee cost increased by 17% (INR 294 Mn) in Q4 FY26 vs Q4 FY25, impacting EBITDA.

Higher Other Expenses

Other expenses increased by 8% (INR 134 Mn) in Q4 FY26 vs Q4 FY25, impacting EBITDA.

Risk radar

Profitability Pressure from Mix and Tariffs

EBITDA was lower than expected due to product mix and tariff impacts, indicating vulnerability to external and internal pricing/cost factors.

Operating Cost Inflation

Significant increases in employee costs (17%) and other expenses (8%) YoY pose a risk to sustained margin expansion if not managed effectively.

Management accountability

What management said, and what results must prove

Management accountability

What management said, and what results must prove

Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.

Analyst reading lens
Compare BOTH

The presentation provides explicit year-on-year growth figures for key financial metrics like revenue and PBT, and a detailed Q4 FY26 vs Q4 FY25 EBITDA reconciliation. Additionally, it includes sequential quarterly data for revenue, PBT, and sales mix, enabling analysis of both annual performance and sequential trends.

Sector KPIs management disclosed

Revenue Growth

Sales grew by 12% (Q4 FY26 vs Q4 FY25).

PBT Growth

PBT Growth over Previous year by 17% (Q4 FY26 vs Q4 FY25).

EBITDA Margin

EBITDA % was 15.6% in Q4 FY26, compared to 15.0% in Q4 FY25.

PAT Margin

PAT % was 11.5% in Q4 FY26, compared to 10.3% in Q4 FY25.

Thesis monitor

Numbers and claims to verify in the next filings

CheckpointCurrent evidenceWhat to verify next
EBITDA Margin15.6% in Q4 FY26Stability or improvement in margins, indicating effective mitigation of product mix and tariff pressures.
Sales Growth12% YoY in Q4 FY26Sustained double-digit revenue growth across key geographies and segments.
Operating Cost ControlEmployee cost up 17%, Other expenses up 8% YoY in Q4 FY26Moderation in the growth rate of employee and other expenses relative to sales growth.
Net Cash PositionINR 6,207 Mn as of Mar-26Continued strong cash generation and maintenance of a robust net cash position.

Verification checkpoints are IndiaPulse research interpretation, not investment advice.

Technical timing lens

Trend score and candlestick chart

70Bullish

full bull SMA stack · SMA20 +5.7% / mo · MACD + · near 52W high

Stock trend: 85
Sector RS: 48
Sector 3M: -1.6% vs Nifty -1.5%

Technical chart

ELGIEQUIPdaily · 1Y · AUTO+23.9%
Latest close ₹642.10 on 2026-09-04
Bar
+1.4%
RSI
61
MACD hist
1.23
52W pos
99%
2026-09-04O ₹632.95H ₹645.40L ₹627.50C ₹642.10Vol 6.9L sh
₹445.48₹497.84₹550.20₹602.56₹654.9252H642.102026-032026-06VolRSIMACD2026-032026-042026-062026-072026-09
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal

Daily technical trend read

Bullish setup

Trend is constructive — long-term uptrend intact. RSI 61.

  • Price > SMA20 > SMA50 > SMA200 — full bullish stack.
  • SMA20 rising (~5.4% over last month) — short-term momentum positive.
  • RSI(14) at 61 — rising, no extreme reading.
  • MACD above signal, histogram expanding — bullish momentum building.
  • Within 3% of 52-week high — testing resistance.

Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.

Nifty 500 leadership

Relative Strength & Trend Stage

82
RS percentile
Stage 2 Uptrend
1M return
+9.1%
3M return
+6.2%
6M return
+30.9%
1Y return
+37.4%
RS 1D
+1
RS 20D
+12
Sector rank
#2
Industry rank
#8
Stage evidence
  • Price is 15.2% above the 30-week proxy.
  • The 50-DMA is above the 30-week proxy and its slope is rising +4.3%.
  • Both 3-month and 6-month returns are positive.
50-DMA
price above
200-DMA
price above
Sector
leading
Industry
neutral
Relative-strength line vs Nifty 500 (base 100)
264 observations
04 Sept 2026Value 120.18+1.86%
7788100111122Aug 25Dec 25Apr 26Sept 26120
RS vs Nifty 500120

Valuation & score drivers

U-Score 49 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor

49U-SCORE
Premium Compounder

Fundamental score breakdown

FAIR VALUE
Valuation0/30
Growth15/25
Quality15/20
Balance Sheet8/15
Cash Flow7/10
Piotroski
8/9 (+5)
Penalties
-1
Raw sum
49

Why this score?

Top U-Score contributors and drags from the latest stored fundamentals.

49/100 · FAIR VALUE

Positive drivers

  • Piotroski is strong at 8/9.
  • Quality contributes 15/20 to the score.
  • Cash flow contributes 7/10 to the score.

Main drags

  • Penalty bucket subtracts 1 points.
  • Fair-value margin of safety is negative at -14.8%.
  • Valuation is weaker at 0/30; verify the latest quarterly trend.
Sector valuation model

Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks

For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.

Blended relative
Primary lens
PE, EV/EBITDA, margin of safety, and FCF yield together.
Secondary checks
ROE/ROCE, growth, cash conversion, leverage, promoter risk.
Main risk check
One cheap metric is not enough if quality or cash flow is weak.
PE
43.9
PB
9.1
EV/EBITDA
29.7
ROE
19.0%
ROCE
22.1%
FCF Yield
1.8%
Debt/Equity
0.2
MoS
-14.8%
Score movement

Stored run vs live recompute

This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.

Stored run: 05 Sept 2026
v4.3-runtime-valuation
Final score
49
Previous: 49
Verdict
FAIR VALUE
Previous: FAIR VALUE
Margin of safety
-14.8%
Previous: -14.8%

Score history

12 stored score snapshots. Latest stored move: +0 points.

05 Sept 2026
v4.3-runtime-valuation
51
50
49
49
49
49
49
49
49
49
49
49

Factor attribution

No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.

Modelled fair value

Graham Number
₹149.61
-329.2% MoS
Growth-justified P/E
39.6
Growth-justified Value
₹559.55
-14.8% MoS
PEG
1.91

Trust score

Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth

Trust Score
83Healthy Trust · low confidenceTrust Lite

Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.

Healthy Trust: Claim history is still being built. It ranks around the 95th percentile of the scored universe and 96th percentile within Industrials. No major sub-score weakness stands out.

High Trust Lite: Promoter pledge is zero.

Computed 05 Sept 2026
management-trust-v1
98 docs text-extracted · 49 concalls text-extracted
Score band
Healthy Trust

Generally investable credibility. Look for weak sub-scores before increasing position size.

Relative rank
95th percentile

overall median 67 · Industrials: 96th pctile, median 68 · Large: 88th pctile, median 73

Evidence depth
Financial-only

98 documents have extracted text, but claim history is not strong enough yet.

Claim delivery
Outcome history still building

0 claims extracted · No contradicted claim yet

How to read this Trust Score

Healthy Trust · low confidence
What it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Can support position sizing if valuation and trend also agree.

Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.

Forensic breakdown

Read low sub-scores as due-diligence warnings, not automatic sell signals.

Promoter
78
strong · holding, pledge, alignment
Cash flow
77
strong · profit to cash conversion
Balance sheet
89
strong · leverage and solvency
Discipline
82
strong · capital discipline
Results
95
strong · quarterly consistency

Trust positives

  • Promoter pledge is zero.
  • FCF yield is positive at 1.8%.
  • 9 years of positive FCF.
  • ROCE is 22.1%.

Trust risks

  • No major Trust Lite risk flags.

Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.

Financials

Full fundamentals table and 10-year revenue / profit / ROE history

Fundamentals

Valuation

P/E
43.90
P/B
9.12
EV/EBITDA
29.66
Market Cap
20349.00Cr

Profitability

ROE
19.00%
ROCE
22.10%
ROA
12.66%
Dividend Y
0.42%

Growth (CAGR)

Revenue 5Y
15.00%
EPS 5Y
31.00%
Revenue 3Y
9.00%
EPS 3Y
11.00%

Balance Sheet

Debt/Equity
0.24
Interest Coverage
25.50×
Altman Z
8.84
Book Value
70.40

Cash Flow

FCF Yield
1.75%
FCF Positive Y
9/5
OCF
454.00 Cr
EPS TTM
14.13

Shareholding

Promoter Hold
31.19%
Promoter Pledge
0.00%
Momentum 52W
99%

Financial History

Updated 5/9/2026

Revenue

₹ Cr
No data

Net Profit

₹ Cr
No data

Return on Equity

%
No data

Peers

Business-comparable names in Industrials, ranked by similarity

Verify on:NSE India ↗
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.