Elgi Equipments Stock Research

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Elgi Equipments Detail

Elgi Equipments is in portfolio of Nemish Shah. He is one of the top investors in India. The company belongs to Compressors sector. 

As per the Company website it is a leading air compressor manufacturer. It offers a complete range of compressed air solutions from oil-lubricated and oil-free rotary screw compressors, oil-lubricated and oil-free reciprocating compressors and centrifugal compressors, to dryers, filters and downstream accessories.

Below is list of major product lines from the Company

  • Piston Compressors
  • Electric Lubricated Screw Compressors
  • Electric Oil free Screw Compressors
  • Portable Compressors
  • Air Accessories
  • Heat Recovery System
  • Railway Compressors

It has manufacturing centers in India and Italy. The Company has presence in foreign markets like Australia, Brazil, China, Italy, Middle East and USA through sub subsidiaries. It has Pan India presence and has offices in many cities in India.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

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Elgi Equipments Stock Performance

I like chart of this stock. The reason is simple it does not have any zig zag movement positive and negative direction both. The Company has incremental growth over the years in profit as well as stock price performance.

It does have long consolidation period of 2 to 3 years in between the jumps but that is understandable. It does not have any major negative movement signifying stable nature of the stock.

It also pays consistent dividend over the years which is added bonus to investors. Investors have made money in this counter. It has given more than 25 times return in this long term performance chart.

Elgi Equipments My Opinion

Elgi Equipments is a Compressor sector Company. Compressors have wide range of usage in different industries like Cement, Defense. Cable Layout (Telephone etc), Power and Railways. Most of the Industries have application for Compressors.

The usage differs and the need of machines or compressors also differs. This sector has too few companies listed so it will not be difficult task to evaluate them. Ingersoll Rand is also listed which is one of the largest Compressor companies in the World.

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The sector is dependent on demand of Compressor in different industries and processes. No industry has complete dependency on it. Most of the industries have processes placed which require usage of Compressors in one or more of the processes.

To eliminate usage of Compressors Companies will have to device new process which may have technical challenges. As of now demand of Compressors will be present though it is tough to predict the growth rate of it over the years.

I have not yet invested in this sector but I will add this Company to my watch list. That will help me evaluate this Company better.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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