Indian Accounting Research Analyst, Trudence Capital Advisors

Nitin Mangal

Indian Accounting Research Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Forensic Accounting

<ul>
<li>
<a href="https://www.smartkarma.com/entities/elgi-equipments-ltd" target="_blank" data-smartkarma-citation="entities:14951:1" rel="noopener">Elgi Equipments (ELEQ IN)</a> headquartered in Tamil Nadu, India manufactures a range of air compressors and automotive equipments and sells across domestic and international geographies.</li>
<li>Overall, balance sheet looks strong with consistent FCF generation, upward sloping ROCEs and low risk of solvency</li>
<li>But one needs to be cautious about the performance of subsidiaries, especially the Belgium and US arms, and goodwill assessment, whistle blower trends, etc.</li>
</ul>



Elgi Equipments (ELEQ IN) headquartered in Tamil Nadu, India manufactures a range of air compressors and automotive equipments and sells across domestic and international geographies.
Overall, balance sheet looks strong with consistent FCF generation, upward sloping ROCEs and low risk of solvency
But one needs to be cautious about the performance of subsidiaries, especially the Belgium and US arms, and goodwill assessment, whistle blower trends, etc.


APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

INOX India Limited / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/inox-india-limited" target="_blank" data-smartkarma-citation="entities:40138:1" rel="noopener">INOX India Limited (INOX IN)</a> raised around US$175m in its Indian IPO, after pricing the deal at INR660/share. It will begin trading tomorrow on 21st Dec 2023.</li>
<li>Inox India is a manufacturer of cryogenic equipment. As per CRISIL, the firm was the largest Indian exporter of cryogenic tanks in terms of FY23 sales.</li>
<li>We have looked at various aspects of the deal in our previous notes. In this note, we talk about demand and trading dynamics.</li>
</ul>



INOX India Limited (INOX IN) raised around US$175m in its Indian IPO, after pricing the deal at INR660/share. It will begin trading tomorrow on 21st Dec 2023.
Inox India is a manufacturer of cryogenic equipment. As per CRISIL, the firm was the largest Indian exporter of cryogenic tanks in terms of FY23 sales.
We have looked at various aspects of the deal in our previous notes. In this note, we talk about demand and trading dynamics.


Inox India IPO Trading - Hot Demand for Cryogenics

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>In Q2FY23, <a href="https://www.smartkarma.com/entities/thermax-ltd" target="_blank" data-smartkarma-citation="entities:4578:1" rel="noopener">Thermax (TMX IN)</a> recorded strong revenue growth of 41% y/y to Rs20.8bn, driven by strong growth across all the three segments.</li>
<li>The company bore the brunt of high raw material prices as EBIT margins saw a 900 bps decline y/y to 6.9%. However, EBIT margin improved 200 bps over Q1FY23.</li>
<li>The order book of the company grew 46% y/y to Rs94.8bn. Order book is well diversified across sectors. Domestic orders comprised ~84% of the order book.  </li>
</ul>


In Q2FY23, Thermax (TMX IN) recorded strong revenue growth of 41% y/y to Rs20.8bn, driven by strong growth across all the three segments.
The company bore the brunt of high raw material prices as EBIT margins saw a 900 bps decline y/y to 6.9%. However, EBIT margin improved 200 bps over Q1FY23.
The order book of the company grew 46% y/y to Rs94.8bn. Order book is well diversified across sectors. Domestic orders comprised ~84% of the order book.  


Thermax (TMX IN): Strong Order Book Entails Visibility Amid Margin Pressure

External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

External broker reports(aggregated public sources)

ICICI Securities Ltd

ICICI Securities Limited provides investment services. The Company provides corporate and investment banking, securities, wealth management, retail brokerage, initial public offerings, and advisory services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Elgi Equipments (Elgi) manufactures wide range of air compressors (~90% of revenue) and automotive equipment (~10%).</li><li>Elgi is the second largest player in the Indian air compressor market (~22% market share) and among the top eight players globally</li><li>Target Price and Valuation: We value Elgi at Rs 410 i.e. 50x P/E on FY24E EPS</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Elgi Equipments (Elgi) manufactures wide range of air compressors (~90% of revenue) and automotive equipment (~10%).Elgi is the second largest player in the Indian air compressor market (~22% market share) and among the top eight players globallyTarget Price and Valuation: We value Elgi at Rs 410 i.e. 50x P/E on FY24E EPSContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Elgi Equipments: Decent Numbers Amid Challenges

<ul><li>Elgi Equipments (Elgi) manufactures a wide range of air compressors (~90% of revenue) and automotive equipment (~10%)</li><li>Elgi is the second largest player in the Indian air compressor market (~22% market share) and is among the top eight players globally</li><li>Considering strong growth outlook, better margins, we maintain BUY rating. We value Elgi at Rs 260.</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Elgi Equipments (Elgi) manufactures a wide range of air compressors (~90% of revenue) and automotive equipment (~10%)Elgi is the second largest player in the Indian air compressor market (~22% market share) and is among the top eight players globallyConsidering strong growth outlook, better margins, we maintain BUY rating. We value Elgi at Rs 260.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Elgi Equipments: Healthy Growth, Margins Impacted Amid Challenges

India

Elgi Equipments Limited manufactures reciprocating and screw type air compressors, diesel engines. generators and pumps, garage equipment, auto products and heat pressure cleaners.  Elgi markets a range of wheel balancers, oil suction units, AC recovery plants, mobile service units, and pasteurizer and bottle washers.  The Company operates in India and markets its products globally.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Elgi Equipments (ELEQ IN)

ELGi Equipments- Forensic Analysis

Elgi Equipments (ELEQ IN) in India has a strong balance sheet with consistent FCF generation and low solvency risk, but caution is needed...

Nitin Mangal

Inox India IPO Trading - Hot Demand for Cryogenics

INOX India Limited (INOX IN) raised around US$175m in its Indian IPO, after pricing the deal at INR660/share. It will begin trading tomorrow on...

Ethan Aw

Thermax (TMX IN): Strong Order Book Entails Visibility Amid Margin Pressure

In Q2FY23, Thermax reported 41% revenue growth, while the company’s order book jumped 46%. However, inflationary pressures are expected to impact...

Tina Banerjee

Elgi Equipments: Decent Numbers Amid Challenges

Elgi Equipments (Elgi) manufactures wide range of air compressors (~90% of revenue) and automotive equipment (~10%). Elgi is the second largest...

ICICI Securities Limited

Elgi Equipments: Healthy Growth, Margins Impacted Amid Challenges

Elgi Equipments (Elgi) manufactures a wide range of air compressors (~90% of revenue) and automotive equipment (~10%). Elgi is the second largest...

ICICI Securities Limited

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

ELGi Equipments- Forensic Analysis

​Elgi Equipments (ELEQ IN) in India has a strong balance sheet with consistent FCF generation and low solvency risk, but caution is needed...

Nitin Mangal

Inox India IPO Trading - Hot Demand for Cryogenics

INOX India Limited (INOX IN) raised around US$175m in its Indian IPO, after pricing the deal at INR660/share. It will begin trading tomorrow on...

Ethan Aw

Thermax (TMX IN): Strong Order Book Entails Visibility Amid Margin Pressure

In Q2FY23, Thermax reported 41% revenue growth, while the company’s order book jumped 46%. However, inflationary pressures are expected to impact...

Tina Banerjee

Elgi Equipments: Decent Numbers Amid Challenges

Elgi Equipments (Elgi) manufactures wide range of air compressors (~90% of revenue) and automotive equipment (~10%). Elgi is the second largest...

ICICI Securities Limited

Elgi Equipments: Healthy Growth, Margins Impacted Amid Challenges

Elgi Equipments (Elgi) manufactures a wide range of air compressors (~90% of revenue) and automotive equipment (~10%). Elgi is the second largest...

ICICI Securities Limited

Elgi Equipments (ELEQ IN) in India has a strong balance sheet with consistent FCF generation and low solvency risk, but caution is needed...