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Last Updated on: 15 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Elgi Equipments Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 15, 2024, 11:33 pm

Market Cap 21,414 Cr.
Current Price 676
High / Low799/466
Stock P/E66.0
Book Value 50.8
Dividend Yield0.30 %
ROCE22.3 %
ROE20.6 %
Face Value 1.00
PEG Ratio1.16

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Elgi Equipments Ltd

Competitors of Elgi Equipments Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of Elgi Equipments Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales547611489652656728694739772836724806822
Expenses486531457572582621616626659708635663692
Operating Profit61793280741067811311312789143129
OPM %11%13%7%12%11%15%11%15%15%15%12%18%16%
Other Income7612181116141618128201313
Interest3333323565578
Depreciation19201918182019202020191919
Profit before tax46632377641007010410523186130114
Tax %24%31%47%33%34%27%31%31%24%26%29%30%27%
Net Profit354312524273497280170609184
EPS in Rs1.091.370.381.631.322.311.542.272.535.371.912.882.65

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9921,1251,3501,2941,4011,3701,6041,8631,8291,9242,5253,0413,138
Expenses8801,0241,2491,2041,2741,2291,4261,6691,6921,7072,2272,6042,666
Operating Profit11210210190127141178194138217298437472
OPM %11%9%8%7%9%10%11%10%8%11%12%14%15%
Other Income15169326141011142554175179
Interest3712171497111715152423
Depreciation14182637444544516574747876
Profit before tax1119372687510013714470153263510552
Tax %32%35%37%30%32%26%30%28%39%33%32%27%
Net Profit7660464851749510343102178371402
EPS in Rs2.381.901.441.521.612.343.013.251.343.235.6311.7012.69
Dividend Payout %21%28%35%33%31%21%20%20%61%25%20%17%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-21.05%-23.33%4.35%6.25%45.10%28.38%8.42%-58.25%137.21%74.51%108.43%
Change in YoY Net Profit Growth (%)0.00%-2.28%27.68%1.90%38.85%-16.72%-19.96%-66.67%195.46%-62.70%33.92%

Elgi Equipments Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:9%
5 Years:12%
3 Years:19%
TTM:7%
Compounded Profit Growth
10 Years:21%
5 Years:24%
3 Years:44%
TTM:-15%
Stock Price CAGR
10 Years:27%
5 Years:38%
3 Years:49%
1 Year:41%
Return on Equity
10 Years:15%
5 Years:17%
3 Years:21%
Last Year:21%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital161616161616161632323232
Reserves4184484785305916737557538381,0011,3391,579
Borrowings288337367304251266238448465436577638
Other Liabilities332363296256250298366334430491531558
Total Liabilities1,0541,1641,1561,1061,1081,2531,3751,5511,7651,9592,4792,807
Fixed Assets297391454462441440504600572553587587
CWIP7686102426447310
Investments151515151515141224313741
Other Assets6666726776276487958519351,1651,3671,8522,170
Total Assets1,0541,1641,1561,1061,1081,2531,3751,5511,7651,9592,4792,807

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -719778126126471723524069166288
Cash from Investing Activity -259-122-17-16-39-53-107-152-1102-217-101
Cash from Financing Activity 25420-52-100-77-10-6091-48-8160-82
Net Cash Flow-75-410109-175-2582-118105

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow112.00-186.00-236.00-277.00-177.00-110.00-88.00-44.00-310.00-248.00-138.00-140.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days736669666578726976686668
Inventory Days12611813210610911099128122130143145
Days Payable9592827983868778103867580
Cash Conversion Cycle1039211992911028311995112135133
Working Capital Days806373666776619586848991
ROCE %17%11%8%11%13%16%16%8%13%19%24%22%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters31.91%31.91%31.91%31.32%31.32%31.19%31.19%31.19%31.19%31.19%31.19%31.19%
FIIs23.02%23.82%24.89%26.24%27.00%28.99%29.25%29.09%29.33%28.82%29.02%29.54%
DIIs9.24%7.34%6.76%5.96%5.93%4.76%4.77%4.87%4.87%4.84%4.92%4.97%
Public35.71%36.82%36.25%36.28%35.56%34.87%34.58%34.67%34.47%34.96%34.70%34.12%
Others0.12%0.12%0.19%0.19%0.19%0.19%0.19%0.17%0.14%0.18%0.16%0.16%
No. of Shareholders34,09541,22640,12346,16444,38652,38248,78647,23649,93458,12656,75455,150

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Small Cap Fund10,000,0002.39505.35130,2482024-10-147577.66%
LIC MF Flexi Cap Fund205,4471.2310.38130,2482024-10-1457.74%
Nippon India Nifty Smallcap 250 Index Fund130,2480.916.58130,2482024-10-140%
Motilal Oswal Nifty Smallcap 250 Index Fund81,7750.914.13130,2482024-10-14-37.22%
LIC MF Small Cap Fund70,8662.123.58130,2482024-10-14-45.59%
SBI Nifty Smallcap 250 Index Fund60,0160.913.03130,2482024-10-14-53.92%
Motilal Oswal Nifty 500 Index Fund8,9360.080.45130,2482024-10-14-93.14%
Edelweiss Nifty Smallcap 250 Index Fund2,7610.910.14130,2482024-10-14-97.88%
Groww Nifty Total Market Index Fund4880.080.02130,2482024-10-14-99.63%
Motilal Oswal Nifty 500 ETF3910.080.02130,2482024-10-14-99.7%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)9.8611.725.643.242.69
Diluted EPS (Rs.)9.8611.715.643.242.69
Cash EPS (Rs.)12.1014.077.945.536.72
Book Value[Excl.RevalReserv]/Share (Rs.)50.8443.2732.5827.4548.53
Book Value[Incl.RevalReserv]/Share (Rs.)50.8443.2732.5827.4548.53
Revenue From Operations / Share (Rs.)101.5495.9579.6760.71115.46
PBDIT / Share (Rs.)17.0715.7810.967.559.41
PBIT / Share (Rs.)14.6513.328.615.205.29
PBT / Share (Rs.)13.7316.038.264.784.31
Net Profit / Share (Rs.)9.6811.625.593.192.61
NP After MI And SOA / Share (Rs.)9.8411.705.633.232.69
PBDIT Margin (%)16.8116.4413.7512.428.15
PBIT Margin (%)14.4313.8810.808.564.58
PBT Margin (%)13.5116.7010.367.863.73
Net Profit Margin (%)9.5312.117.015.252.25
NP After MI And SOA Margin (%)9.6912.197.065.322.32
Return on Networth / Equity (%)19.3527.0417.2811.785.53
Return on Capital Employeed (%)27.0428.5223.5416.189.06
Return On Assets (%)11.0514.829.085.802.73
Long Term Debt / Equity (X)0.010.010.050.090.13
Total Debt / Equity (X)0.340.370.350.420.50
Asset Turnover Ratio (%)1.210.991.050.800.90
Current Ratio (X)1.921.791.651.511.42
Quick Ratio (X)1.361.201.061.060.87
Inventory Turnover Ratio (X)1.972.523.282.212.62
Dividend Payout Ratio (NP) (%)20.289.8014.170.00130.36
Dividend Payout Ratio (CP) (%)16.288.1010.000.0051.47
Earning Retention Ratio (%)79.7290.2085.830.00-30.36
Cash Earning Retention Ratio (%)83.7291.9090.000.0048.53
Interest Coverage Ratio (X)18.4425.2931.2617.749.59
Interest Coverage Ratio (Post Tax) (X)11.4514.3016.948.503.66
Enterprise Value (Cr.)18846.5213869.858952.376135.102077.18
EV / Net Operating Revenue (X)5.864.563.553.191.14
EV / EBITDA (X)34.8427.7425.7825.6513.93
MarketCap / Net Operating Revenue (X)5.924.583.513.130.96
Retention Ratios (%)79.7190.1985.820.00-30.36
Price / BV (X)11.8310.168.586.932.31
Price / Net Operating Revenue (X)5.924.583.513.130.96
EarningsYield0.010.020.020.010.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Elgi Equipments Ltd as of October 15, 2024 is: ₹692.75

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 15, 2024, Elgi Equipments Ltd is Undervalued by 2.48% compared to the current share price ₹676.00

Intrinsic Value of Elgi Equipments Ltd as of October 15, 2024 is: ₹1,086.05

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 15, 2024, Elgi Equipments Ltd is Undervalued by 60.66% compared to the current share price ₹676.00

Last 5 Year EPS CAGR: 56.77%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (783.58 cr) compared to borrowings (384.58 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (77.62 cr) and profit (180.62 cr) over the years.
  1. The stock has a low average ROCE of 14.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 77.58, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 106.33, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Elgi Equipments Ltd:
    1. Net Profit Margin: 9.53%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 27.04% (Industry Average ROCE: 0.59%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 19.35% (Industry Average ROE: 0.49%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 11.45
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.36
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 66 (Industry average Stock P/E: 0)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.34
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Elgi Equipments Ltd. is a Public Limited Listed company incorporated on 14/03/1960 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L29120TZ1960PLC000351 and registration number is 000351. Currently Company is involved in the business activities of Manufacture of other pumps, compressors, taps and valves. Company’s Total Operating Revenue is Rs. 1582.59 Cr. and Equity Capital is Rs. 31.69 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
CompressorsElgi Industrial Complex, Trichy Road, Coimbatore Tamil Nadu 641005investor@elgi.com
http://www.elgi.com
Management
NamePosition Held
Mr. Jairam VaradarajManaging Director
Mr. Anvar Jay VaradarajExecutive Director
Mr. B VijayakumarNon Executive Director
Mr. Sudarsan VaradarajNon Executive Director
Dr. Ganesh DevarajNon Executive Director
Mr. M RamprasadNon Executive Director
Ms. Aruna ThangarajNon Executive Director

FAQ

What is the latest fair value of Elgi Equipments Ltd?

The latest fair value of Elgi Equipments Ltd is ₹692.75.

What is the Market Cap of Elgi Equipments Ltd?

The Market Cap of Elgi Equipments Ltd is 21,414 Cr..

What is the current Stock Price of Elgi Equipments Ltd as on 15 October 2024?

The current stock price of Elgi Equipments Ltd as on 15 October 2024 is ₹676.

What is the High / Low of Elgi Equipments Ltd stocks in FY 2024?

In FY 2024, the High / Low of Elgi Equipments Ltd stocks is 799/466.

What is the Stock P/E of Elgi Equipments Ltd?

The Stock P/E of Elgi Equipments Ltd is 66.0.

What is the Book Value of Elgi Equipments Ltd?

The Book Value of Elgi Equipments Ltd is 50.8.

What is the Dividend Yield of Elgi Equipments Ltd?

The Dividend Yield of Elgi Equipments Ltd is 0.30 %.

What is the ROCE of Elgi Equipments Ltd?

The ROCE of Elgi Equipments Ltd is 22.3 %.

What is the ROE of Elgi Equipments Ltd?

The ROE of Elgi Equipments Ltd is 20.6 %.

What is the Face Value of Elgi Equipments Ltd?

The Face Value of Elgi Equipments Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Elgi Equipments Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE