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Elgi Equipments Limited (ELGIEQUIP) Fair Value & Analysis

Industrials · IN · Market cap ₹190B

EE Elgi Equipments Limited ELGIEQUIP · NSE
Price₹575.55
Fair Value₹440.42
Upside-23.5%
Quality65/100
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Healthy Growth
Solidly profitable · 10.9% net margin
Low debt · generates free cash flow
0.44% dividend yield
Ranks above peers (9/14)
Wide moat 67/100
Evidence: High Range ₹289.04 – ₹608.78 Share as image

Fair value as of: Aug 2, 2026

From 26 valuation models · updated 11 days ago

Fair value updated Aug 2, 2026, revised from ₹244.68 to ₹440.42 (+80.0%) since Jun 29, 2026. Share price +0.4% over the past month.

A solid business, but screening 23% overvalued on our models.

What matters now

  • Solid but not exceptional quality (65/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (₹289.04 to ₹608.78) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹759.58 ₹129.20 Fair Value ₹440.42 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range ₹129.20 – ₹759.58 · fair‑value band ₹289.04 – ₹608.78 · the ₹575.55 price screens above the ₹440.42 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 2, 2026.

Full chart & analysis →

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Analysis

Elgi Equipments Limited (ELGIEQUIP) currently trades at ₹575.55, while our model-based Fair Value estimate is ₹440.42, implying the stock looks roughly 23.5% overvalued today. The Quality Score stands at 65/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Elgi Equipments Limited generated revenue of ₹39.5B at a net margin of 10.9%. Revenue grew 12.1% year over year. It earns a return on equity of 21.0%. The balance sheet holds a net cash position of ₹1.8B. Fundamentals as of Aug 2, 2026

Our scenario range runs from ₹289.04 (bear case) to ₹608.78 (bull case); at ₹575.55, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 9% below its 52-week high and 41% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -23%, ELGIEQUIP screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹162.45 ₹268.62 ₹449.35 80
Residual Income ₹90.93 ₹124.25 ₹557.70 76
Rev-Margin DCF ₹163.74 ₹271.91 ₹412.32 74
All 26 models by family
DCF Models
FCF DCF ₹163.66 ₹279.79 ₹483.16 38
Owner Earnings ₹171.65 ₹294.36 ₹509.26 31
5Y Revenue Exit ₹163.74 ₹275.17 ₹427.53 39
5Y EBITDA Exit ₹180.44 ₹309.75 ₹472.92 41
5Y P/E Exit ₹202.98 ₹356.45 ₹533.49 38
10Y Revenue Exit ₹157.66 ₹263.89 ₹428.70 36
10Y EBITDA Exit ₹173.66 ₹289.30 ₹466.88 37
10Y P/E Exit ₹188.63 ₹323.61 ₹517.82 35
Earnings-Based
Graham-Dodd ₹92.80 ₹437.66 ₹601.81 54
Lynch FV ₹116.07 ₹165.81 ₹215.55 50
PEG = 1.0 ₹116.07 ₹165.81 ₹215.55 46
EPV ₹127.34 ₹144.76 ₹160.01 59
Dividend Discount
Gordon GGM ₹20.21 ₹42.03 ₹66.67 70
DDM Multi-Stage ₹20.21 ₹35.44 ₹44.11 61
Multiples
P/E Multiple ₹214.94 ₹286.58 ₹358.23 63
P/S Multiple ₹174.00 ₹231.99 ₹289.99 58
P/B Multiple ₹174.00 ₹231.99 ₹289.99 55
EV/EBIT ₹222.29 ₹288.80 ₹355.30 53
EV/EBITDA ₹201.88 ₹261.59 ₹321.29 54
EV/Revenue ₹165.18 ₹226.20 ₹287.23 43
Asset-Based
NCAV (Graham) ₹35.40 ₹47.44 ₹70.80 50
Growth DCF
Growth DCF ₹162.45 ₹268.62 ₹449.35 80
Rev-Margin DCF ₹163.74 ₹271.91 ₹412.32 74
Economic Profit
Residual Income ₹90.93 ₹124.25 ₹557.70 76
ROIC Compounder ₹142.06 ₹183.09 ₹235.87 72
Growth Earnings
Growth-Adj P/E ₹183.31 ₹261.87 ₹340.43 68

Widest divergence: DCF Models (₹289.30) versus Dividend Discount (₹35.44). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹39.5B
Revenue growth (YoY) +12.1%
Net margin 10.9%
Return on equity 21.0%
Free cash flow ₹3.4B FY2026
P/E ratio 44.4
More key figures
Operating margin 13.4%
EPS (TTM) ₹13.59
Dividend yield 0.4%
EPS growth (YoY) +25.4%
Net cash ₹1.8B FY2026

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 65 · Market factors (momentum, volatility) 62

Profitability 67
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 49
Earnings quality: real cash, not paper profit
Fin. Strength 90
Balance sheet, leverage, solvency risk
Investment 47
Disciplined investing over empire-building
Low Volatility 80
Calm price path (market factor)
Momentum 55
Price trend over the last 3–12 months (market factor)
52W Momentum 55
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Elgi Equipments Limited manufactures and sells air compressors and related parts in India, Europe, Australia, the United States, and internationally. It operates through two segments, Air Compressors and Automotive Equipments.

Full company description

Elgi Equipments Limited manufactures and sells air compressors and related parts in India, Europe, Australia, the United States, and internationally. It operates through two segments, Air Compressors and Automotive Equipments. The company offers oil lubricated screw and piston air compressors, oil free piston and screw air compressors, rotary and reciprocating air compressors, diesel and electric portable air compressors, railway air compressors, heat recovery systems, and medical air compressors and vacuum pumps, as well as air accessories; air compressor parts, filters and separators, lubricants and fluids, and service kits, and other accessories; and air compressor service. It is also involved in the trading of air compressors, nitrogen systems, and altitude training systems; manufacture and trading of automotive garage equipment, compressed air systems, and vacuum pumps for medical applications; renting of property; and provision of design services. In addition, the company manufactures and trades compressors, hydraulic hammers, and rampi cars. The company serves manufacturing, textile, agriculture, automotive, and construction industries. Elgi Equipments Limited was incorporated in 1960 and is based in Coimbatore, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Elgi Equipments Limited reported revenue of ₹39.5B in FY2026 versus ₹25.2B in FY2022, a compound +11.8%/yr. Reported net income was ₹4.3B in FY2026, compounding +24.6%/yr from FY2022.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹39.5B
Latest YoY
+12.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.5%
Avg. growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.4%
Revenue +11.8%/yr
FY22 ₹25.2B
FY23 ₹30.4B
FY24 ₹32.2B
FY25 ₹35.1B
FY26 ₹39.5B
Net income +24.6%/yr
FY22 ₹1.8B
FY23 ₹3.7B
FY24 ₹3.1B
FY25 ₹3.5B
FY26 ₹4.3B
Character of growth · EPS growth decomposed (2015-2026) +22.7 % p.a.
Revenue per share +11.3 pp

of which total revenue +11.3 pp · buybacks/dilution +0.0 pp

EBIT margin −0.2 pp
Tax rate +0.3 pp
Residual (interest, one-offs) +11.4 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

ELGIEQUIP screens 23% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Elgi Equipments Limited Fair Value". https://www.fairvalue-calculator.com/stock/ELGIEQUIP

Peer Group

Specialty Industrial Machinery · 805 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 65 · Top 25%
Fair Value upside −24% · Above median
Return on equity (TTM) 21% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 11% · Top 25%
Operating margin (TTM) 13% · Above median
Revenue growth 12% · Above median
Dividend yield (TTM) 0.4% · Bottom 25%

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 44.4× · Pricier than median
P/B 8.53× · Pricier than 75% of peers
P/S (TTM) 4.82× · Pricier than 75% of peers
P/FCF 0.6× · Cheaper than 75% of peers
EV/EBITDA 31.6× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 2 · sector 0
FUTURE 61 · sector 23
PAST 84 · sector 28
HEALTH 100 · sector 96
DIVIDEND 9 · sector 24

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

Is Elgi Equipments Limited (ELGIEQUIP) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of ₹440.42 versus a price of ₹575.55, about −23% (overvalued).
What is the fair value of ELGIEQUIP?
Our model-based fair value for Elgi Equipments Limited is ₹440.42 (as of Aug 2, 2026), built from audited fundamentals. The current price is ₹575.55.
What is the quality score of ELGIEQUIP?
Elgi Equipments Limited has a Quality Score of 65/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Elgi Equipments Limited (ELGIEQUIP)?
Elgi Equipments Limited reported trailing-twelve-month revenue of about ₹39.5B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of ELGIEQUIP?
The net profit margin of Elgi Equipments Limited is about 10.9%, meaning it keeps roughly 10.9% of revenue as net income. Based on the latest reported figures.
Does Elgi Equipments Limited pay a dividend?
Elgi Equipments Limited currently shows a dividend yield of about 0.44% relative to its recent price (as of Aug 2, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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