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News: Elgi Equipments Ltd (ELGi) has revised its revenue target upwards under its strategic business plan (SBP) based on double-digit growth in FY23 and favourable growth outlook in this fiscal. The Coimbatore-headquartered leading air compressor manufacturer has now increased the consolidated revenue target from Rs 3,375 crore to Rs 3,750 crore to be achieved by FY26, while it is sticking to EBITDA margin and ROCE targets of 16% and 30% respectively for FY26. For FY23, it reported a consolidated revenue of Rs 3,041 crore and a net profit of Rs 371 crore.
Views: We believe Elgi's international business looks promising in terms of growth trajectory wherein investment made in Europe are likely to yield results ahead of the anticipated time . Also a strong capex cycle in india and introduction of new products in the oil free range will drive domestic growth.
Impact: Positive