Buy Elgi Equipments, target price Rs 535: IIFL

IIFL has buy call on Elgi Equipments with a target price of Rs 535. The current market price of Elgi Equipments is Rs 507.05. IIFL recommended to keep stoploss at Rs 488.


Elgi Equipments, incorporated in the year 1960, is a Mid Cap company (having a market cap of Rs 16159.19 Crore) operating in Electric/Electronics sector.


Elgi Equipments key Products/Revenue Segments include Sale of services, Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 790.36 Crore, up 4.91 % from last quarter Total Income of Rs 753.39 Crore and up 18.60 % from last year same quarter Total Income of Rs 666.43 Crore. Company has reported net profit after tax of Rs 81.25 Crore in latest quarter.

The company’s top management includes Mr.Jairam Varadaraj, Mr.N Mohan Nambiar, Mr.B Vijayakumar, Mr.Sudarsan Varadaraj, Dr.Ganesh Devaraj, Mr.M Ramprasad, Mr.Harjeet Singh Wahan, Mrs.Aruna Thangaraj, Mr.Anvar Jay Varadaraj. Company has Price Waterhouse Chartered Accountants LLP as its auditors. As on 31-03-2023, the company has a total of 32 Crore shares outstanding.

Investment Rationale
The stock has given a cup and handle breakout.

Promoter/FII Holdings
Promoters held 31.19 per cent stake in the company as of 31-Mar-2023, while FIIs owned 29.09 per cent, DIIs 4.87 per cent.