Elgi Equipments Ltd.
ISIN: INE285A01027 • Market Cap: ₹20,224 Cr
The 5-Pillar Quality Audit for Elgi Equipments Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (14.8%), Return on Capital Employed (26.7%), and equity compounding (19.3%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.18 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (8.8%) and 3Y PAT CAGR (12.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 45.15 vs PEG of 3.16 and Dividend Yield of 0.4%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 31.2%, backed by 32.0% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 26.7%)
Elgi Equipments Ltd. generates exceptional return on capital employed of 26.7%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 19.3%)
Shareholder equity compounds at a healthy 19.3%, exceeding average Indian equity benchmarks.
Deep Institutional Sponsorship (32.0%)
Mutual funds, domestic DIIs, and foreign FIIs hold 32.0%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Capital Goods)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Capital Goods space.
Quantitative Strategy Eligibility
Checking ELGIEQUIP against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 70/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Capital Goods Sector Peer Comparison
Compare ELGIEQUIP directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Elgi Equipments Ltd. (ELGIEQUIP)Current | 70/100 | ₹20,224 Cr | 45.15 | 26.7% | 0.18 | — |
| Hindustan Aeronautics Ltd. (HAL) | 70/100 | ₹3.35 Lakh Cr | 35.94 | 13.9% | 0.00 | View |
| Bharat Electronics Ltd. (BEL) | 80/100 | ₹2.99 Lakh Cr | 48.61 | 32.7% | 0.00 | View |
| Tata Motors Ltd. (TMCV) | 71/100 | ₹1.76 Lakh Cr | 42.02 | 31.3% | 0.38 | View |
| ABB India Ltd. (ABB) | 72/100 | ₹1.57 Lakh Cr | 52.48 | 28.7% | 0.00 | View |
| Hitachi Energy India Ltd. (POWERINDIA) | 76/100 | ₹1.50 Lakh Cr | 129.99 | 26.7% | 0.00 | View |
Frequently Asked Questions: Elgi Equipments Ltd.
Q:What is the 5-Pillar Fundamental Score for Elgi Equipments Ltd. (ELGIEQUIP)?
Elgi Equipments Ltd. has a RupeeTools Fundamental Score of 70/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (82/100), Financial Health (83/100), Growth (62/100), Valuation (40/100), and Ownership Quality (68/100).
Q:Is ELGIEQUIP fundamentally strong for long-term investment?
Yes, ELGIEQUIP exhibits solid fundamental strength with a 70/100 score, driven by a return on equity of 19.3% and a debt-to-equity ratio of 0.18.
Q:Does ELGIEQUIP pass the Coffee Can Investing filter?
Yes! ELGIEQUIP satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does ELGIEQUIP compare against other Capital Goods peers?
Within India's Capital Goods sector, ELGIEQUIP trades at a P/E of 45.15 and generates an ROCE of 26.7%. Compare its 5-Pillar score of 70/100 against top sector peers like Hindustan Aeronautics Ltd. (70/100), Bharat Electronics Ltd. (80/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.