Should I buy Elgi Equipments stock in 2025?
Is it the right time to buy Elgi Equipments?
ScoreElgi Equipments Ltd, listed on NSE and BSE, is currently trading at approximately ₹531.05 per share with a recent daily trading volume of 203,198 shares, reflecting robust investor interest. After an impressive five-year return of over 600%, the stock experienced a moderate correction in the past year. The company’s fundamentals remain compelling, thanks to innovative launches like the STABILIZOR technology, which promises major energy efficiencies across industries. Q4 FY2025 results saw revenue rise 17% quarter-on-quarter and net profit up 27%, underscoring operational strength. In a market environment grappling with volatility and technical weaknesses, sentiment around Elgi remains constructive owing to ongoing global expansion and sustained profit growth. Elgi is consolidating its position as the second-largest air compressor firm in India and is on track with its ambition to rank among the global top three. With a price target of ₹690 set by consensus from more than 7 national and international banks, and backed by strong sector momentum in capital goods and manufacturing, Elgi Equipments stands out as a well-managed, forward-looking company. Investors seeking long-term growth in India’s industrial plays may find the current levels worthy of consideration.
- ✅Consistent double-digit revenue and profit growth over recent years.
- ✅Pioneer in energy-saving compressor technologies like STABILIZOR.
- ✅Ambitious global expansion, targeting top-three status worldwide.
- ✅Strong operating cash flow and disciplined capital management.
- ✅Leadership recognized in the growing capital goods sector.
- ❌Premium valuation with a high P/E and P/B may limit short-term upside.
- ❌Recent technical weakness and high beta signal potential near-term volatility.
Score- ✅Consistent double-digit revenue and profit growth over recent years.
- ✅Pioneer in energy-saving compressor technologies like STABILIZOR.
- ✅Ambitious global expansion, targeting top-three status worldwide.
- ✅Strong operating cash flow and disciplined capital management.
- ✅Leadership recognized in the growing capital goods sector.
Is it the right time to buy Elgi Equipments?
- ✅Consistent double-digit revenue and profit growth over recent years.
- ✅Pioneer in energy-saving compressor technologies like STABILIZOR.
- ✅Ambitious global expansion, targeting top-three status worldwide.
- ✅Strong operating cash flow and disciplined capital management.
- ✅Leadership recognized in the growing capital goods sector.
- ❌Premium valuation with a high P/E and P/B may limit short-term upside.
- ❌Recent technical weakness and high beta signal potential near-term volatility.
Score- ✅Consistent double-digit revenue and profit growth over recent years.
- ✅Pioneer in energy-saving compressor technologies like STABILIZOR.
- ✅Ambitious global expansion, targeting top-three status worldwide.
- ✅Strong operating cash flow and disciplined capital management.
- ✅Leadership recognized in the growing capital goods sector.
- What is Elgi Equipments?
- What is the price of Elgi Equipments stock?
- Our full analysis of the Elgi Equipments stock
- How to Buy Elgi Equipments Stock in India
- Our 7 Tips for Buying Elgi Equipments Stock
- The latest news about Elgi Equipments
- FAQ
- On the same topic
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of Elgi Equipments for over three years. Every month, lakhs of users in India trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Elgi Equipments.
What is Elgi Equipments?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | India | Elgi Equipments is a leading Indian manufacturer with global reach. |
| 💼 Market | NSE / BSE | Listed on major stock exchanges allows high liquidity and access. |
| 🏛️ ISIN code | INE285A01027 | Unique identifier for tracking Elgi Equipments across platforms. |
| 👤 CEO | Dr. Jairam Varadaraj | Visionary leadership drives innovation and international expansion. |
| 🏢 Market cap | ₹16,834 Crores | Large cap status signals strong position in the capital goods sector. |
| 📈 Revenue | ₹3,510 Crores (FY2025) | Solid revenue base supports ongoing R&D and growth projects. |
| 💹 EBITDA | ₹526 Crores (FY2025) | Consistently healthy EBITDA reflects operational efficiency. |
| 📊 P/E Ratio (Price/Earnings) | 48.06 | High P/E shows market expects strong future earnings growth. |
What is the price of Elgi Equipments stock?
The price of Elgi Equipments stock is declining this week. The current price stands at ₹531.05, down ₹6.50 (–1.21%) over the last 24 hours and showing a –1.01% change for the week. Elgi Equipments’ market capitalization is ₹16,834 crores, with an average three-month trading volume of 203,198 shares. The P/E ratio is 48.06, reflecting high growth expectations, while the dividend yield is 0.41%, and the beta of 1.40 signals above-average volatility. This combination of performance and volatility offers both opportunities and risks for active investors.
Our full analysis of the Elgi Equipments stock
Having reviewed Elgi Equipments' latest financial results and tracked its stock performance over the past three years, we have synthesised insights from multiple analytical sources—including financial indicators, technical signals, market data, and competitive benchmarking—using our proprietary algorithms. This comprehensive approach aims to illuminate where Elgi Equipments stands today and its potential going forward. So, why might Elgi Equipments stock once again become a strategic entry point into the capital goods and industrial technology sector in 2025?
Recent performance and market context
Elgi Equipments has experienced a volatile yet ultimately robust multi-year performance, reflecting both global industrial cycles and its own trajectory of innovation. As of July 2025, the stock is trading at ₹531.05, with a recent weekly decline of –1.01% and a sharper drawdown of –27.77% over the trailing year. Such correction comes after outstanding gains in preceding years—Elgi registered a remarkable +613.78% return over five years and +54.33% over three. Importantly, market capitalisation remains strong at ₹16,834 crores, putting the company among India's leading industrial players.
Recent news highlights management’s commitment to growth amid challenging market sentiment. The company reaffirmed its dividend policy (₹2.2 per share declared for FY25) and rolled out STABILIZOR technology—offering transformative potential for energy-efficient compressed air systems. This technological leap further positions Elgi as a global contender just as manufacturing and infrastructure spending continues to strengthen across India and major export markets.
The wider macroeconomic landscape is also constructive. India’s capital goods sector is benefiting from fiscal incentives, rising domestic investment, and a supportive export environment. These structural dynamics bolster both the demand outlook for Elgi’s products and investor confidence in continued growth.
Technical analysis
Technically, Elgi Equipments is in a consolidation phase after a significant pullback from its 52-week high of ₹762.20. The current price hovers near a medium-term support level at ₹527.35, with immediate resistance at ₹540.55. Indicators provide a nuanced but overall optimistic outlook:
- RSI (14-day): At 57.6, Elgi is neither overbought nor oversold, suggesting capacity for further upward moves.
- MACD: Positive at 18.04, echoing underlying bullish momentum despite recent volatility.
- Moving averages: The 20-day SMA (₹520.63) and EMA (₹517.18) both remain just below the current price, pointing to stabilization and renewed buying interest.
Recent bearish signals, such as a death cross on the 200-day moving average and short-term EMA crossovers, should be viewed in context. Such technical patterns may precede periods of accumulation—particularly when strong fundamentals provide a cushion. The confluence of support at ₹527.35 and historically strong volume in this range could make present levels attractive for disciplined accumulation.
Fundamental analysis
Elgi Equipments’ fundamental story is equally compelling. The company posted ₹3,510 crores in revenue for FY2025, growing 9.02% YoY, and delivered a net profit of ₹350 crores (+12.28% YoY). Over the last five years, the company boasts a staggering 52.6% CAGR in profit, underscoring both operational excellence and forward-looking growth strategy. Its operating margin (14.43%) and robust ROCE (25.85%) position it well above industry averages, confirming effective capital deployment.
Despite trading at a high P/E ratio of 48.06 and a price-to-book multiple of 9.13, such valuations are reflective of premium brands and top-tier innovators in capital goods. Investors are essentially buying into future cash flows, robust R&D, and global market expansion.
Strategically, Elgi Equipments is not just a domestic giant but a fast-rising international contender—currently the world’s 6th largest air compressor manufacturer and 2nd largest in India, with growing market share in the European Union thanks to targeted expansion.
Key competitive advantages include:
- Proprietary technologies (like STABILIZOR) that enable significant cost savings for clients
- Ambitious global growth goals—aiming for $2 billion+ in revenue by 2035–36
- Consistent product innovation and upgrades supporting customer loyalty across diverse geographies
Volume and liquidity
Elgi Equipments benefits from robust liquidity, with a three-month average daily trading volume of 203,198 shares. Such consistent activity is a marker of broad market participant engagement—both institutional and retail—and aids in maintaining market efficiency and tight bid-ask spreads. Sustained trading volume also enables dynamic price discovery, supporting the stock’s ability to rapidly reflect news and earnings momentum.
The company’s healthy float and market capitalisation foster ideal conditions for both strategic accumulation by long-term investors and tactical interest from active traders. This liquidity advantage ensures that Elgi remains on the radar for investors seeking exposure to the rapidly-modernising Indian industrial sector.
Catalysts and positive outlook
Several bullish catalysts underscore the renewed promise of Elgi Equipments:
- Breakthrough technology: The recent launch of STABILIZOR, heralded as a major advance in compressed air stabilization, is expected to disrupt both domestic and global markets. With energy savings up to 19 trillion units worldwide, this innovation gives Elgi a genuine margin and ESG edge.
- Strategic global expansion: With a stated aim to break into the global top 3 and $2 billion annual revenue, Elgi’s international push into the EU, Americas, and emerging regions is gaining traction—offering investors a play on “Make in India” and export-led growth.
- Strong operating cash flow: ₹391 crores generated in FY2025, supporting dividend sustainability and further R&D investments.
- Sector tailwinds: Government emphasis on infrastructure and clean technologies, favourable global demand for efficient manufacturing systems, and ongoing replacement cycles all support future earnings growth.
- ESG and sustainability credentials: Energy efficiency focus not only aligns with India’s regulatory trends but is also highly attractive to corporate and government clients globally.
Such catalysts are likely to unlock further upside, positioning Elgi Equipments among the most resilient and innovative industrial technology companies in the region.
Investment strategies
Elgi Equipments seems well-suited to a range of investor strategies:
- Short-term traders may look to capitalise on volatility near technical support, especially if a bounce to resistance at ₹540.55 materialises or if positive corporate news emerges.
- Medium-term investors can consider staged entries as consolidation continues and as quarterly results or new contract wins act as triggers for upside moves.
- Long-term growth-focused investors are likely to view current levels as an ideal entry for a multi-year holding period, benefiting from Elgi’s exceptional profit compounding, innovation, and ambitious global scale-up plans.
With most analysts assigning a median target price of ₹586 and observing 30%+ upside potential from current levels, there is broad consensus that Elgi Equipments stands at the brink of another expansion cycle.
Is it the right time to buy Elgi Equipments?
All told, Elgi Equipments presents a rare combination of financial strength, ambitious innovation, and expanding global presence—anchored by structurally favourable industry dynamics. Despite recent price corrections and short-term volatility, the fundamentals justify renewed interest and suggest the stock may be entering a new bullish phase. For investors seeking exposure to India’s industrial transformation and capital goods innovation, Elgi Equipments seems to represent an excellent opportunity backed by vision, execution, and future-ready technology.
Active monitoring of support levels and operational updates will be key for tactical entry, but the current market context supports a positive outlook. Elgi Equipments remains a standout candidate for those seeking both growth and resilience from one of India’s most dynamic engineering firms—positioned to benefit from both domestic expansion and global ambitions.
How to Buy Elgi Equipments Stock in India
Buying Elgi Equipments stock online is both easy and secure through any SEBI-regulated broker in India. You can choose between two main methods: spot (cash) buying, where you directly own the shares, or trading through CFDs, which allows you to speculate on price movements with leverage. Both approaches are digital, with the investor experience designed to be transparent and user-friendly. If you’re unsure which route suits your needs best, you’ll find a detailed broker comparison further down this page.
Spot buying
A cash purchase means you directly buy Elgi Equipments shares, making you an actual shareholder of the company. In this scenario, you pay the full amount up front, typically incurring a fixed commission per order—commonly around ₹50–₹100 per trade in India.
Gain Scenario Example
If the Elgi Equipments share price is ₹531, you can buy around 1.88 shares with a $1,000 stake (approx. ₹83,000), including a brokerage fee of around $5.
✔️ Gain scenario: If the share price rises by 10%, your shares are now worth $1,100. Result: +$100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD trading allows you to speculate on Elgi Equipments shares’ price movements without owning the actual share. Instead, you trade a contract reflecting the stock’s price. Fees typically include the spread (difference between buy and sell prices) plus overnight financing costs for leveraged positions.
CFD Position Gain Scenario
You open a CFD position on Elgi Equipments shares, with 5x leverage and a $1,000 stake.
This gives you market exposure of $5,000.
✔️ Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain, on a bet of $1,000 (excluding fees).
Final advice
Before investing in Elgi Equipments, it’s wise to carefully compare brokers’ fees, platforms, and account conditions. Whether you choose traditional spot buying for long-term investment or active trading via CFDs, your decision should align with your risk appetite, investment horizon, and financial goals. A broker comparison tool is available further down the page to help you make the most informed choice.
Check out the best brokers in India!Compare brokersOur 7 Tips for Buying Elgi Equipments Stock
| 📊 Step | 📝 Specific tip for Elgi Equipments |
|---|---|
| Analyze the market | Examine the capital goods sector in India and trends impacting demand for Elgi Equipments products. |
| Choose the right trading platform | Opt for a SEBI-regulated broker offering access to NSE/BSE shares at competitive fees for Elgi Equipments. |
| Define your investment budget | Decide how much to invest in Elgi Equipments based on your overall portfolio size and risk comfort. |
| Choose a strategy (short or long term) | For Elgi Equipments, consider a long-term approach given its global expansion and steady earnings growth. |
| Monitor news and financial results | Follow quarterly earnings and announcements like new product launches and global contracts by Elgi Equipments closely. |
| Use risk management tools | Set stop-loss orders and diversify to manage Elgi Equipments’s high beta and market swings. |
| Sell at the right time | Reduce or exit your position when Elgi Equipments nears target prices or before potentially volatile events. |
The latest news about Elgi Equipments
Elgi Equipments declared a ₹2.2 per share dividend, record date set for July 18, 2025. The company announced a 220% final dividend for FY2025, reinforcing its commitment to rewarding shareholders. This decision highlights strong cash flow and consistent profitability, which is particularly appealing to income-focused investors in India’s capital goods sector.
Elgi Equipments reported robust Q4 FY2025 results with revenue up 17.27% and net profit up 26.58% quarter-on-quarter. For the March 2025 quarter, the company registered ₹993 crores in revenue and ₹102 crores net profit, demonstrating healthy operational efficiency. The Indian market was a significant contributor, reflecting sustained local demand for air compressors and related solutions.
Company’s STABILIZOR technology featured in domestic media as a pioneering Indian innovation for energy efficiency. Coverage within India spotlighted the potential of STABILIZOR, which could save considerable electricity for Indian industries. This recognition boosts the corporate image locally while directly addressing cost and sustainability concerns relevant to Indian manufacturers.
Elgi Equipments maintained strong analyst consensus with a 30% upside target and majority ‘Buy’ recommendations. Market experts in India reaffirmed Elgi Equipments as a favored pick within the industrial segment, citing ambitious expansion plans, R&D focus, and outstanding long-term returns. These positive signals support increasing market confidence among Indian institutional and retail investors.
The upcoming Annual General Meeting is scheduled for August 12, 2025, with high expectations for company updates. Indian shareholders are keenly awaiting the AGM for potential announcements related to growth strategy, dividends, and technology rollouts. Such corporate actions are closely watched, as they can serve as short-term catalysts for stock performance in the local market.
FAQ
What is the latest dividend for Elgi Equipments stock?
Elgi Equipments currently pays a dividend. For FY2025, the declared final dividend is ₹2.2 per share, with the record date set for July 18, 2025. This dividend represents a steady increase over the past years, reflecting the company’s robust cash flows and commitment to distributing profits to shareholders. The latest yield is modest but has shown consistent growth in line with the company’s expanding financial performance.
What is the forecast for Elgi Equipments stock in 2025, 2026, and 2027?
Based on the current price of ₹531.05, the projections are: end of 2025 – ₹690, end of 2026 – ₹796, end of 2027 – ₹1,062. Elgi Equipments benefits from strong demand in the Indian capital goods sector and ongoing innovation in compressor technology, supporting an optimistic outlook among industry analysts.
Should I sell my Elgi Equipments shares?
Holding Elgi Equipments shares may be appropriate for many investors. The company’s strong fundamentals, growing market presence, and resilient mid- to long-term prospects, combined with steady financial results, suggest continued upside potential. With a history of leadership in innovation and market share, patient investors could benefit from holding through market cycles for potentially enhanced value.
Are Elgi Equipments shares eligible for any special tax treatment in India?
Elgi Equipments shares are classified as standard listed equity in India. They are subject to long-term capital gains tax (10% above the ₹1 lakh exemption) and dividends are taxed according to prevailing income tax rates, with TDS applicable. The stock does not qualify for PEA, REER, or any specific tax-advantaged retirement scheme, but it does enjoy the standard equity tax benefits available for listed Indian stocks.
What is the latest dividend for Elgi Equipments stock?
Elgi Equipments currently pays a dividend. For FY2025, the declared final dividend is ₹2.2 per share, with the record date set for July 18, 2025. This dividend represents a steady increase over the past years, reflecting the company’s robust cash flows and commitment to distributing profits to shareholders. The latest yield is modest but has shown consistent growth in line with the company’s expanding financial performance.
What is the forecast for Elgi Equipments stock in 2025, 2026, and 2027?
Based on the current price of ₹531.05, the projections are: end of 2025 – ₹690, end of 2026 – ₹796, end of 2027 – ₹1,062. Elgi Equipments benefits from strong demand in the Indian capital goods sector and ongoing innovation in compressor technology, supporting an optimistic outlook among industry analysts.
Should I sell my Elgi Equipments shares?
Holding Elgi Equipments shares may be appropriate for many investors. The company’s strong fundamentals, growing market presence, and resilient mid- to long-term prospects, combined with steady financial results, suggest continued upside potential. With a history of leadership in innovation and market share, patient investors could benefit from holding through market cycles for potentially enhanced value.
Are Elgi Equipments shares eligible for any special tax treatment in India?
Elgi Equipments shares are classified as standard listed equity in India. They are subject to long-term capital gains tax (10% above the ₹1 lakh exemption) and dividends are taxed according to prevailing income tax rates, with TDS applicable. The stock does not qualify for PEA, REER, or any specific tax-advantaged retirement scheme, but it does enjoy the standard equity tax benefits available for listed Indian stocks.
On the same topic
