ICICI Direct has given Hold recommendation for Elgi Equipments with a target price of Rs. 410 in its research report issued on Feb 15, 2022

ICICI Direct’s research report on Elgi Equipments

Elgi Equipments (Elgi) manufactures wide range of air compressors (~90% of revenue) and automotive equipment (~10%). 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 ~40% in FY21)

Outlook

We changed the rating on the stock from BUY to HOLD We value Elgi at Rs 410 i.e. 50x P/E on FY24E EPS

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