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Last Updated : Jun 09, 2017 10:55 AM IST | Source: Moneycontrol.com

Hold Elgi Equipments; target of Rs 230: Axis Direct

Axis Direct recommended hold rating on Elgi Equipments with a target price of Rs 230 in its research report dated March 16, 2017.


Axis Direct's research report on Elgi Equipments


With best-in-class product suite (both in terms of width and quality), Elgi has drawn up a plan in conjunction with Boston Consulting Group (BCG) to revitalize its marketing operations both domestic and overseas. Losses in international operations have been eliminated and marketing/distribution issues are improving (the first phase of BCG strategy).


Outlook


As the earnings growth would be back-ended, we believe the stockis likely to remain at elevated multiples. Using a 2-stage DCF, we arrive at TP of Rs 230 (7% upside) implying FY18 PE of 28x; downgrade to HOLD.


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First Published on Mar 20, 2017 04:00 pm
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