Shares of ELGI Equipments Ltd escalated 13.09% to reach an intraday high of ₹ 534.00 apiece on the National Stock Exchange (NSE), after the company reported its result for the quarter and year ended March 31, 2023. At 11:55 AM, its shares were trading 12.92% higher at ₹ 533.20 apiece.
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Elgi Equipments along with its subsidiaries manufactures and trades air compressors and automotive equipment, and provides related after-sales services. According to the company’s shareholding pattern, foreign institutions hold a 29.10% stake or 9,22,04,715 shares in it.
The company reported a 131.11% increase in its consolidated net profit for the January to March quarter (Q4FY23) to ₹ 170.10 crores, against ₹ 73.6 crores reported in the corresponding quarter last year (Q4FY22). Its consolidated revenue from operations climbed 14.86% to ₹ 835.74 crores in Q4FY23 against ₹ 727.61 crores reported in Q4FY22.
For the entire financial year (FY23), its net profit shot up 107.82% to ₹ 370.81 crores against ₹ 178.43 crores reported in the previous financial year (FY23). It posted revenue from operations of ₹ 3,040.70 crores in FY23, up 20.44% against ₹ 2,524.71 crores reported in FY22.
The company’s board recommended a dividend of ₹ 2 per equity share of ₹ 1 each, for FY23, subject to approval by its shareholders. The record date for determining the eligibility of shareholders to receive the dividend is Friday, July 28, 2023. If approved, the dividend shall be paid on or before September 03, 2023.
With a market capitalization of ₹ 14,939 crores, Elgi Equipments is a small-cap stock. It has an ideal return on equity of 18.76% and an ideal debt-to-equity ratio of ₹ 0.60. However, its shares were trading at a price-to-earnings ratio of 54.61, substantially higher than the industry P/E of 26.51, indicating that the stock might be overvalued as compared to its peers.
Written by Simran Bafna
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