Shares of Elgi Equipments jumped 12 percent on July 12, hitting a 52-week high of Rs 614, after the manufacturer raised its revenue target.
The Coimbatore-headquartered company increased its revenue target under its strategic business plan (SBP) based on double-digit growth in FY23 and favourable growth outlook in this fiscal. It has now increased the consolidated revenue target to Rs 3,750 crore from Rs 3,375 crore, to be achieved by FY26.
Though Elgi Equipments is maintaining its EBITDA (earnings before interest tax depreciation and amortisation) margin and ROCE (return on capital employed) targets of 16 percent and 30 percent for FY26.
At 10:09am, shares of the company were trading 11.05 percent higher at Rs 606.05 on the BSE. In the past three months, the scrip has gained over 30 percent.
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The company reported an on-year growth of 20 percent in consolidated revenue for FY22-23 at Rs 3,041 crore, while net profit more than doubled to Rs 371 crore.
According to ICICI Securities, the company’s growth trajectory in the international business looks promising with investments made in Europe likely to yield results ahead of the anticipated time. Plus, a strong capital expenditure cycle in India and introduction of new products in the oil free range will drive domestic growth, it added.
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