Accumulate Elgi Equipments; target of Rs 603: Prabhudas Lilladher
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Prabhudas Lilladher recommended accumulate rating on Elgi Equipments with a target price of Rs 603 in its research report dated February 27, 2026.
Prabhudas Lilladher’s research report on Elgi Equipments
We attended Elgi Equipments’ (ELEQ) analyst meet, where management highlighted business performance, product innovation, and its medium-term strategic roadmap. The ISAAME region is expected to remain the key growth engine, supported by strong traction in the Middle East and a recovery in investment activity following tariff normalization. In North America, performance was weighed down by the structurally lower-margin portable segment and prior tariff impacts; however, underlying initiatives remain intact. Europe has achieved break-even following cost rationalization, with future growth anchored in market share gains across core markets. In Australia, share gains have partially mitigated broader market weakness. Rising traction for Demand=Match and a robust pipeline of new product launches position the company well to achieve its USD750mn revenue target with ~18% EBITDA margin by FY31, reinforcing a constructive long-term outlook.
The stock is currently trading at a PE of 36.0x/31.4x on FY27/28E earnings. We roll forward to Mar’28E and maintain our ‘Accumulate’ rating valuing the stock at a PE of 35x Mar’28E (35x Sep’27E) arriving at a revised TP of Rs603 (Rs565 earlier).
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