Elegant Profits: How Elgi Equipments Made A Whooping 136% Returns In Just A Year
Had you invested ₹1 Lakh in Elgi Equipments Ltd. in November 2021 you could have reaped double the investment and made ₹2.36 lakhs today. Investors rejoice 136% returns on this multibagger. Here is a closer look at the company’s performance.
⚙️ Stock Name: Elgi Equipments Ltd.
⚙️ NSE: $ELGIEQUIP
⭐ About The Company
Founded on 14th March 1960, Elgi Equipments is one of the leading air compressor manufacturers. Incorporated in 1975, the company is headquartered in Coimbatore, Tamil Nadu and is headed by Dr Jairam Varadaraj, Managing Director. Elgi Equipments was initially an air compressor manufacturer and a garbage equipment producer. After 6 decades of development and innovation, the company became a leading provider of air-compressing system solutions. At present, it has more than 400 products in its portfolio.
🌍 Global Leader
The company is one of the global leaders in the field of sustainable, technologically advanced compressing solutions with clients in over 120 countries. It also has manufacturing facilities spread across India, Italy and the USA. The company boasts more than 20 lakh installations worldwide.
🤵🏼 Client Base
The company’s client base includes a number of industries which require machinery like compressing systems, vacuum pumps and heat recovery. Engineering and the plastics industry are among the major clients for the company.
With a market capitalization of ₹16,065 crores, the company earned revenue of ₹448 crores in the September quarter with a 62% increase in profit from the June quarter at ₹73 crores. The dividend payout is 23.1%.
🏭 Production Plant In Coimbatore
In February 2022, it was reported that Elgi Equipments has decided to consolidate all its manufacturing facilities into a single production plant in Coimbatore. This is in an effort to reduce the overheads and improve the company’s logistic efficiency. Running at 70-75% capacity, the company spends around ₹30-35 crores per year on supplementing the capacity.
💰 Stock Value
💵 On November 22, 2021, the shares of the company were trading at ₹212, while they were priced at ₹502 as of November 21, 2022.