CMP: 81


Elgi Equipments Limited manufactures reciprocating and screw type air compressors, diesel engines. generators and pumps, garage equipment, auto products and heat pressure cleaners. Elgi markets a range of wheel balancers, oil suction units, AC recovery plants, mobile service units, and pasteurizer and bottle washers. The Company operates in India and markets its products globally.

Elgi Equipments is a good mid-cap bet. Its currently trading at a P/E of little over 15. Good dividend yields of almost 2.50% in the last 12 months. Minimal liabilities. Solid revenue base growing steadily. NPM has also improved steadily from 6% to over 10% in the last 5 years. This has pushed the profits 4 fold up in the last 5 years. Buy, accumulate in dips and hold with long term perspective.