ELGI Equipments Limited (ELGIEQUIP) AI Stock Analysis

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ELGI Equipments Limited

(NSE:ELGIEQUIP)

Select Model

Rating:72Outperform

Price Target:INR 614.00▲(6.09% Upside)

Action:reiterated

Date:08/28/26

The score is primarily supported by strong financial performance—especially balance sheet conservatism and improving cash generation—tempered by a notable 2026 operating-profit step-down that increases margin-sustainability risk. Technicals are neutral-to-mildly positive, but the overall score is held back by a rich valuation (high P/E and low yield).

Positive Factors

Steady Revenue GrowthSustained revenue growth indicates continued demand for ELGI Equipments’ compressor systems and related solutions across its served markets. A growing top line can support scale benefits, strengthen customer reach, and provide a durable base for future cash generation if operating discipline is maintained.

Negative Factors

Operating-Profit VolatilityThe divergence between higher revenue and a sharp operating-profit decline signals pressure on underlying operating efficiency. If this pattern persists, it could weaken margin sustainability, reduce earnings predictability, and limit the benefit that revenue growth provides to long-term profitability.

ELGI Equipments Limited (ELGIEQUIP) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 183.53B
Dividend Yield: 0.47%
Average Volume (3M): 56.98K
Price to Earnings (P/E): 40.1
Beta (1Y): 1.26
Revenue Growth: 17.34%
EPS Growth: 17.07%
Country: India
Employees: 1,432
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

ELGI Equipments Limited Business Overview & Revenue Model

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...

ELGI Equipments Limited Financial Statement Overview

Summary

Overall financials are strong: steady multi-year revenue growth, improving leverage (healthier debt-to-equity trend), and materially better operating/free cash flow in the most recent year. The key risk is profitability volatility—2026 showed a sharp drop in operating profit despite higher revenue and net income, raising questions about cost pressure and margin sustainability.

Income Statement

78Positive

Balance Sheet

82Very Positive

Cash Flow

86Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	43.33B	39.51B	35.10B	32.18B	30.41B	25.25B
Gross Profit	17.33B	11.55B	17.64B	16.20B	14.71B	11.37B
EBITDA	7.10B	6.89B	5.31B	4.91B	4.37B	2.96B
Net Income	4.55B	4.30B	3.50B	3.12B	3.71B	1.78B
Balance Sheet
Total Assets	36.41B	35.45B	30.41B	28.21B	25.02B	19.65B
Cash, Cash Equivalents and Short-Term Investments	10.53B	9.29B	9.10B	7.75B	5.71B	2.80B
Total Debt	4.73B	5.33B	5.77B	6.38B	5.77B	4.36B
Total Liabilities	12.39B	13.14B	11.76B	12.10B	11.30B	9.32B
Stockholders Equity	24.02B	22.32B	18.66B	16.11B	13.71B	10.33B
Cash Flow
Free Cash Flow	0	3.42B	3.13B	2.46B	969.11M	280.26M
Operating Cash Flow	0	4.97B	4.08B	2.95B	1.66B	685.62M
Investing Cash Flow	0	-1.67B	-3.31B	-1.39B	-2.17B	19.03M
Financing Cash Flow	0	-2.86B	-1.85B	-519.37M	598.20M	-812.10M

ELGI Equipments Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price578.75

Price Trends

50DMA581.57Negative

100DMA587.48Negative

200DMA554.27Positive

Market Momentum

MACD-4.98Negative

RSI57.95Neutral

STOCH80.87Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ELGIEQUIP, the sentiment is Positive. The current price of 578.75 is above the 20-day moving average (MA) of 541.46, below the 50-day MA of 581.57, and above the 200-day MA of 554.27, indicating a neutral trend. The MACD of -4.98 indicates Negative momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 80.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ELGIEQUIP.

ELGI Equipments Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:ELGIEQUIP against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:INGERRAND	81Outperform	INR 130.24B	46.42	―	1.87%	13.92%	3.16%
IN:ELGIEQUIP	72Outperform	INR 178.02B	40.11	―	0.47%	17.34%	17.07%
IN:KIRLOSBROS	67Neutral	INR 129.96B	34.49	―	0.43%	10.85%	-4.06%
IN:KIRLPNU	67Neutral	INR 83.15B	33.08	―	0.91%	9.10%	38.69%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:KIRLOSENG	51Neutral	INR 237.64B	46.24	―	0.55%	19.56%	1.55%
IN:KSB	51Neutral	INR 110.85B	97.82	―	0.69%	7.98%	-9.14%

* General Sector Average

Performance Comparison

IN:ELGIEQUIP and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:ELGIEQUIP	ELGI Equipments Limited	578.75	80.08	16.06%
IN:INGERRAND	Ingersoll-Rand (India) Limited	4015.10	275.90	7.38%
IN:KIRLOSBROS	Kirloskar Brothers Ltd.	1627.60	-101.07	-5.85%
IN:KIRLOSENG	Kirloskar Oil Engines Limited	1637.50	549.87	50.56%
IN:KIRLPNU	Kirloskar Pneumatic Co. Ltd.	661.50	113.40	20.69%
IN:KSB	KSB Ltd.	637.45	-117.07	-15.52%

ELGI Equipments Limited Corporate Events

Elgi Equipments Receives Independent ESG Rating of “64 Performer”

Sep 13, 2026

Elgi Equipments Limited disclosed that Niche99 ESG Ratings, a SEBI-registered Category II ESG ratings provider, has independently assigned the company an ESG score of “64 Performer” based solely on publicly available information. Elgi clarified that...

Elgi Equipments’ U.S. Arm Receives ₹14.82 Crore Tariff Refund

Aug 29, 2026

Elgi Equipments Limited’s U.S. subsidiary, Elgi Compressors USA Inc., has received a further tariff refund of US$ 1.55 million, or about ₹14.82 crore, from U.S. Customs and Border Protection. The refund stems from a directive of the U.S. Supreme Cour...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 28, 2026

ELGI Equipments Limited AI Stock Analysis