Elgi Equipments, a manufacturing company headquartered in Coimbatore, witnessed a significant increase in its shares as it raised its revenue target. On July 12, the company’s shares surged by 12 percent, reaching a 52-week high of Rs 614. The manufacturer revised its revenue target under its strategic business plan (SBP) due to double-digit growth expected in FY23 and a favorable outlook for this fiscal year. The consolidated revenue target has now been increased to Rs 3,750 crore, to be achieved by FY26, up from the earlier target of Rs 3,375 crore.
Despite the increase in revenue target, Elgi Equipments is maintaining its EBITDA margin and ROCE targets of 16 percent and 30 percent respectively, for FY26. The company’s shares were trading 11.05 percent higher at Rs 606.05 on the Bombay Stock Exchange (BSE) at 10:09 am. Over the past three months, the company’s scrip has gained over 30 percent.
Elgi Equipments reported a 20 percent year-on-year growth in consolidated revenue for FY22-23, amounting to Rs 3,041 crore. The net profit of the company more than doubled, reaching Rs 371 crore.
ICICI Securities has expressed optimism regarding the company’s growth trajectory in its international business, particularly with its investments in Europe expected to yield results ahead of schedule. The introduction of new products in the oil-free range and a robust capital expenditure cycle in India are also predicted to drive domestic growth.
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Overall, the increase in Elgi Equipments’ revenue target and its strong financial performance in FY22-23 have boosted investor confidence, leading to a surge in share prices. The company’s expansion plans in the international market and focus on innovation in the domestic market further contribute to its positive outlook for the future. However, investors should exercise caution and seek professional advice before making any investment decisions.
