Buy Elgi Equipment Ltd - Kotak

- Domestic demand for compressors remained muted in FY13 due to slowdown in industrial Capex. Water well segment has started to pick-up through Q4FY13. International subsidiaries especially Belair France, China and Brazil continue to post losses.

- With EEL's acquisitions of Rotair (Italy) and Patton's (USA), management is confident of gaining market share in Europe, USA and Latin America.

- We remain positive on company's strong brand franchise in domestic markets and increasing geographical diversification. We maintain 'BUY' recommendation on company's stock with DCF based revised price target of Rs 94 (Rs 97 earlier).

Source : Equity Bulls

Keywords