Latest news with #ElgiEquipments
Entrepreneur
14 hours ago
- Business
- Entrepreneur
Elgi Aims to be Top 3 Air Compressor Manufacturers Driven by Broad-Based Growth
Its consolidated revenue from operations for the March quarter was up 14.7 per cent to INR 993 crore as against INR 866 crore in the corresponding quarter of the previous year. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Elgi Equipments aims to be among the top three global air compressor manufacturers by revenue driven by broad-based growth in its key markets. Currently, it is the sixth largest air compressor supplier globally. "India and Europe were very strong, Australia and North America was kind of flat, but Middle East, Africa, India all of them did well. So, that's the top line story. Bottom line was by and large consistent with the top line growth," said Jairam Varadaraj, Managing Director, Elgi. With an estimated market share of around 20 per cent, Coimbatore-based Elgi Equipments is the second largest manufacturer of compressors in India. Its product profile includes portable, reciprocating and screw compressors, sold under the Elgi brand, through channel partners. "We have been for a long period of time in India…we have on average five times more machines installed than in the rest of the world. So, as a consequence, our aftermarket revenue is close to 27-28 per cent of our total revenue, whereas when you take globally, it is only about 12-13 per cent. So, the global markets are in the nascent stage of growing the aftermarket, but once the installed base gets established in these markets, then profitability will follow," said Varadaraj. "So, overall, I think we are on the right track, growing well." Elgi Foundry In a significant leap forward for industrial air compression, earlier this year, Elgi Equipments announced the introduction of its pioneering compressed air stabilization technology, aimed at addressing the challenges of unstable compressor performance, inefficiency, and excessive wear caused by frequent load/unload cycles. In industrial settings, the gap between compressor capacity and plant air demand is inherently dynamic. This variability leads to frequent cut-in and cut-out operations, which destabilize the compressor and impair critical flow and kinematic components. Traditional solutions, such as increasing reservoir volume, altering cut-in/cut-out pressures, or adding variable frequency drives (VFDs), often fall short, introducing new inefficiencies or higher operational costs. The global air compressor market size was valued at approximately USD 26.57 billion in 2024 and is projected to reach USD 34.10 billion by 2030, according to a report from Grand View Research. This represents a compound annual growth rate (CAGR) of approximately 4.7 per cent from 2024 to 2030. Elgi, a publicly listed firm, reported a net profit of INR 102 crore for the fourth quarter ended March, up 34.2 per cent compared to INR 76 crore in the same quarter last year. Consolidated revenue from operations for the March quarter was up 14.7 per cent to INR 993 crore as against INR 866 crore in the corresponding quarter of the previous year. For the full fiscal year, consolidated PAT was down 12.2 per cent to INR 350 crore compared to INR 312 crore in FY24 due to a one-time expense. For the full year, the company's revenue grew 9 per cent to INR 3,510 crore as against INR 3,218 crore in the previous year. "India and Middle East continue to drive sustainable growth. The European and Brazilian business continued the growth momentum. The Australian business saw a return to growth, while the South East Asia remained subdued. The industrials and medical businesses performed well in USA. The automotive business continues to grow, aided by growing domestic demand and through forging strategic partnerships," the company said in a statement during the earnings. On the impact of the US reciprocal tariffs, Elgi said it has "devised certain mitigation measures to overcome the impact of US tariffs, which is expected to be minimized further once a trade agreement is signed at a country-to-country level."
Mint
2 days ago
- Business
- Mint
General industries stocks to trade on 2 June as recommended by expert Raja Venkatraman
The reimposition of Trump-era tariffs has reignited global trade uncertainty, posing fresh challenges for the general industrials sector—home to firms that manufacture and assemble advanced machinery, digital systems, and automated equipment. Initially hit by disrupted supply chains and rising input costs, these companies have been quick to adapt. To counter the pressure, players in this space have ramped up investments in automation, digitization, and supply chain diversification—moves that are gradually mitigating tariff-induced strain. Market metrics reflect this resilience: firms in the sector average a market cap of ₹7,807 crore, a P/E ratio around 55, and an ROE exceeding 20%. Looking ahead, the sector shows moderate bullishness, buoyed by tech-driven efficiency and evolving global trade realignments. With continued focus on automation, R&D, and supply chain flexibility, General Industrials is poised for steady, long-term growth. Also read: This textile star's rally masks a margin meltdown. Should investors be worried? Sector dynamics Cost Savings and price stabilisation Challenges: Demand revival, pricing trends, and growth prospects Based on the above pointers I have selected the following stocks: Shaily Engineering Plastics Ltd CMP: ₹2,016.20 | Target: ₹2,250–2,350 | Stop Loss: ₹1,850 | Time Horizon: 1 Month The stock presents a positive setup and can be considered for long positions at current levels or on dips towards ₹1,900, with a stop loss below ₹1,850. Upside potential lies in the ₹2,250–2,350 range over the next month. Elgi Equipments CMP: ₹535.20 | Target: ₹615 | Stop Loss: ₹490 | Time Horizon: 1 Month The technical setup indicates potential for a near-term rally. Long positions may be considered above current levels and on dips toward ₹505, with a stop loss below ₹490. The stock could test levels of ₹615 over the next month. Shaily Engineering Plastics Ltd Shaily Engineering Plastics Ltd is adapting well to the evolving General Industrials landscape by focusing on supply chain partnerships, collaborative innovation, and operational efficiency. With global trade uncertainties, including the reimposed 26% Trump-era tariffs on Indian exports, the company is prioritizing agility and premium product strategies to manage rising costs and sustain global competitiveness. These efforts are reflected in its strong Q4 FY25 results. Shaily reported a 27.7% year-on-year rise in total income to ₹217.83 crore, with operating profit up 75.7% at ₹43.39 crore. Net profit grew 47.9% to ₹28.59 crore, while EPS improved to ₹6.20. The performance highlights the company's resilience and effective execution amid external pressures. Source: TradingView Shaily Engineering Plastics has held firm through the choppy trends of the past five months, forming higher lows with strong volume support despite persistent market volatility. The stock found solid support near the ₹1,400 level while facing stiff resistance around ₹1,950. This wide consolidation created large swing-based moves, but as broader market sentiment began to improve in late April 2025, the stock staged a notable recovery, drawing increased interest from retail investors. Also read: Strong domestic demand, firm steel prices to keep SAIL in focus Recent momentum in the industrials sector has further fueled participation, with steady volumes helping the stock break past its key resistance zone. The breakout, marked by a strong bullish candle, suggests renewed strength and upside potential. With positive technical cues, traders may consider going long above the current market price or on dips toward ₹1,900, with a stop-loss below ₹1,850. The stock could potentially rally to the ₹2,250– ₹2,350 range over the next month. ELGI EQUIPMENTS Elgi Equipments Ltd, a leading manufacturer of air compressors and related equipment, is realigning its operations to adapt to shifts in the General Industrials sector. As consolidation through mergers, acquisitions, and strategic partnerships gains momentum among peers, Elgi is focused on scaling up operations and boosting efficiency. This strategy aims not only to strengthen its domestic foothold but also to expand its international presence. Additionally, the company is diversifying its portfolio to cater to premium segments alongside its traditional customer base, enhancing brand value and pricing power. The company's Q4 FY25 results reflect this resilience amid external challenges. Consolidated revenue rose about 15% year-on-year to nearly ₹993 crore, while profit after tax jumped approximately 34%, from ₹76 crore in Q4 FY24 to ₹102 crore in Q4 FY25. These gains come despite headwinds like the 26% tariff on certain Indian exports imposed under Trump-era policies, which have complicated cost structures and competitive positioning. Elgi's proactive pricing and cost management have helped cushion these impacts effectively. From a technical perspective, the stock faced a sharp decline following a stock split that reversed gains made since March 2024. After peaking in December 2024, prices gradually slid to form a double bottom near ₹100, establishing a strong base. A robust Q4 performance has since propelled a sharp rebound. Volume is steadily increasing, accompanied by rising momentum indicators such as the Directional Momentum Index, signaling potential further upside. Last Friday's long-bodied candle indicates a breakout above the key resistance zone near ₹150, suggesting positive momentum. Source: TradingView The last six months have been challenging for Elgi Equipments, with the stock experiencing a sharp 40% decline. This drop was largely driven by profit booking trends that affected the broader Mid and Small Cap segments. However, as market volatility eased in March, the stock found support and began a recovery phase. During this rebound, the price formed a classic double bottom pattern, signaling renewed buying interest as geopolitical tensions started to ease. Technically, this recovery has pushed the stock price above the Ichimoku Cloud, a positive indicator of trend strength. Last Friday's strong move above the neckline of the double bottom formation further confirmed this bullish shift. The stock also broke through a key resistance zone near ₹500, adding to the upside momentum. With the positive Directional Index (+DI) climbing and the ADX confirming trend strength, the outlook remains bullish over the coming weeks. For investors, this presents an attractive opportunity to initiate long positions above the current market price (CMP), with a potential entry on dips toward ₹505. A prudent stop-loss could be placed below ₹490, aiming for a target price near ₹615 within the next month. Elgi Equipments remains cautiously optimistic about FY26. Its strategic focus on consolidation, premium product development, and supply chain agility—alongside targeted market expansion in regions such as Europe, Brazil, and Australia—positions the company well to manage uneven demand recovery and pricing pressures. These initiatives should help Elgi navigate challenges while capitalizing on growth opportunities. Also read: Mint Explainer: Why has Sebi barred Arshad Warsi from markets again? Conclusion The general industrials sector is demonstrating notable resilience and adaptability. Despite headwinds like renewed tariffs, rising input costs, and uneven demand across urban and rural markets, companies are strategically realigning their operations. Through consolidation, mergers, acquisitions, and a shift toward premiumised, diversified product offerings, firms are effectively countering external pressures. The sector's ability to adapt to changing global trade dynamics and embrace innovation points to a promising outlook for sustained growth, even as short-term challenges persist. Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223. Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
Business Standard
6 days ago
- Business
- Business Standard
Elgi Equipments consolidated net profit rises 33.79% in the March 2025 quarter
Sales rise 14.66% to Rs 992.90 crore Net profit of Elgi Equipments rose 33.79% to Rs 102.00 crore in the quarter ended March 2025 as against Rs 76.24 crore during the previous quarter ended March 2024. Sales rose 14.66% to Rs 992.90 crore in the quarter ended March 2025 as against Rs 865.94 crore during the previous quarter ended March 2024. For the full year,net profit rose 12.28% to Rs 350.20 crore in the year ended March 2025 as against Rs 311.89 crore during the previous year ended March 2024. Sales rose 9.09% to Rs 3510.40 crore in the year ended March 2025 as against Rs 3217.76 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 992.90865.94 15 3510.403217.76 9 OPM % 15.1014.44 - 14.9515.10 - PBDT 159.80130.08 23 557.60516.82 8 PBT 140.30110.11 27 481.60440.17 9 NP 102.0076.24 34 350.20311.89 12
Economic Times
6 days ago
- Business
- Economic Times
The Electric and Electronics Sector: A Bright Future Ahead
ADVERTISEMENT The electric and electronics sector has shown a mixed performance recently, with a slight decline observed over the past week and month. However, the sector has demonstrated resilience with a positive growth trajectory over the past year, indicating a robust recovery and potential for future expansion. The recent collaboration between India and Japan to enhance technology transfer in renewable energy solutions is a significant catalyst for growth in this sector. This partnership is expected to create numerous job opportunities and promote the adoption of green technologies across India. The involvement of key stakeholders, including the Indian Ministry of Electronics and Information Technology and Japanese technology firms, is likely to facilitate knowledge sharing and spur innovation. As a result, the sector is anticipated to experience long-term growth, with an increase in exports of electronic goods and components, further integrating India into global supply chains. Overall, the outlook for the electric and electronics sector remains positive, with substantial upside potential for investors and stakeholders alike. Company Name Current Price Target Price Upside Potential Recommendation Elgi Equipments Rs. 504.45 Rs. 643.00 28% Buy PG Electroplast Rs. 779.90 Rs. 988.00 27% Buy PG Electroplast Limited is an electronic manufacturing services(EMS)provider for original equipment manufacturers(OEMs)of consumer electronic products in India. The company specializes in manufacturing and assembling a wide range of consumer electronic components and finished products, including kitchen appliances, air conditioners, and mobile handsets. With a diverse clientele of over 45 Indian and global brands, PG Electroplast is well-positioned in the market. ADVERTISEMENT Analysts recommend a 'Buy' for PG Electroplast, with a target price of Rs. 988.00, indicating an upside potential of 27%. The company's financial performance has been impressive, with a year-on-year PAT growth of 108.81% and sales growth of 77.3%. Despite a recent decline in stock price over the past month, the long-term outlook remains strong, supported by significant growth in the last year, where the stock appreciated by over 200%. ADVERTISEMENT Elgi Equipments Limited is engaged in the manufacturing and trading of air compressors, offering a wide range of products including oil lubricated and oil-free compressors. The company serves various industries, providing innovative solutions tailored to customer needs. With a strong market presence, Elgi Equipments is recognized for its quality and reliability. Analysts also recommend a 'Buy' for Elgi Equipments, with a target price of Rs. 643.00, reflecting an upside potential of 28%. However, the company's recent financial performance has shown some challenges, with a slight decline in PAT and modest sales growth. Despite these setbacks, the stock has shown resilience, with a positive return over the past week and month, indicating potential recovery in the near future. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
6 days ago
- Business
- Time of India
The Electric and Electronics Sector: A Bright Future Ahead
The electric and electronics sector is on the verge of significant growth, driven by international collaborations and advancements in renewable energy technologies. This article delves into the sector's outlook and highlights key companies poised for success. Sector Performance and Growth Trajectory Tired of too many ads? Remove Ads Top Companies Analysts Recommend Based on Upside Potential Company Name Current Price Target Price Upside Potential Recommendation Elgi Equipments Rs. 504.45 Rs. 643.00 28% Buy PG Electroplast Rs. 779.90 Rs. 988.00 27% Buy Tired of too many ads? Remove Ads About PG Electroplast About Elgi Equipments The electric and electronics sector has shown a mixed performance recently, with a slight decline observed over the past week and month. However, the sector has demonstrated resilience with a positive growth trajectory over the past year, indicating a robust recovery and potential for future expansion. The recent collaboration between India and Japan to enhance technology transfer in renewable energy solutions is a significant catalyst for growth in this partnership is expected to create numerous job opportunities and promote the adoption of green technologies across India. The involvement of key stakeholders, including the Indian Ministry of Electronics and Information Technology and Japanese technology firms, is likely to facilitate knowledge sharing and spur innovation. As a result, the sector is anticipated to experience long-term growth, with an increase in exports of electronic goods and components, further integrating India into global supply the outlook for the electric and electronics sector remains positive, with substantial upside potential for investors and stakeholders Electroplast Limited is an electronic manufacturing services(EMS)provider for original equipment manufacturers(OEMs)of consumer electronic products in India. The company specializes in manufacturing and assembling a wide range of consumer electronic components and finished products, including kitchen appliances, air conditioners, and mobile handsets. With a diverse clientele of over 45 Indian and global brands, PG Electroplast is well-positioned in the recommend a 'Buy' for PG Electroplast, with a target price of Rs. 988.00, indicating an upside potential of 27%. The company's financial performance has been impressive, with a year-on-year PAT growth of 108.81% and sales growth of 77.3%. Despite a recent decline in stock price over the past month, the long-term outlook remains strong, supported by significant growth in the last year, where the stock appreciated by over 200%.Elgi Equipments Limited is engaged in the manufacturing and trading of air compressors, offering a wide range of products including oil lubricated and oil-free compressors. The company serves various industries, providing innovative solutions tailored to customer needs. With a strong market presence, Elgi Equipments is recognized for its quality and also recommend a 'Buy' for Elgi Equipments, with a target price of Rs. 643.00, reflecting an upside potential of 28%. However, the company's recent financial performance has shown some challenges, with a slight decline in PAT and modest sales growth. Despite these setbacks, the stock has shown resilience, with a positive return over the past week and month, indicating potential recovery in the near future.
