InvestorQ : Why have the shares of Elgi Equipment rallied so sharply in the recent past?
Khushi Patel made post

Why have the shares of Elgi Equipment rallied so sharply in the recent past?

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Dhwani Mehta answered.
2 weeks ago
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Elgi Equipments has rallied by a whopping 54% in the last five weeks to touch a price level of Rs397 on the stock exchange. This is at a time when the markets overall were deep in the red with a correction of 3%. Elgi is a predominant manufacturer of air compressors with a small exposure to automotive equipment. It has 22% market share in air compressors. The spike in price came after a smart performance in Q4FY22.

For the period, Elgi reporting 68% yoy jump in net profits at Rs73.1 crore. Sales revenues for the quarter was also up 19% at Rs728 crore. Above all, the EBITDA margins improved from 12.97% to 14.60% on yoy basis. Much of the outperformance was driven by the air compressor sector.

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