ICICI Direct has given Hold recommendation for Elgi Equipments with a target price of Rs. 475 in its research report issued on Aug 15, 2022

ICICI Direct’s research report on Elgi Equipments

Elgi Equipments (Elgi) manufactures a wide range of air compressors (~92% of revenue) and automotive equipment (~8%). Elgi is the second largest player in the Indian air compressor market (~22% market share) and among the top eight players globally • Expansion in new international markets to drive long term incremental growth (rest of the world contributed ~50% in FY22).

Outlook

We remain long term positive on the stock and change our rating from BUY to HOLD. We value Elgi at Rs 475 i.e. 52x P/E on FY24E EPS.

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