Unlisted Shares

With a legacy spanning over 70 years, a workforce of more than 1200 professionals across six state-of-the-art manufacturing facilities in Faridabad (Haryana), Nalagarh (Himachal Pradesh), and Hosur (Tamil Nadu) in India and a global clientele consisting of Fortune 1000 blue chip corporations, Elofic offers the following filtration and lubrication products: oil filters, air filters, fuel filters, hydraulic filters, coolants and lubricants and grease.

Financial Growth

• Revenue has increased from ₹330.0 Cr. in FY22 to ₹359.7 Cr., in FY23, showcasing a growth of 9% year-on-year (y-o-y).
  
• PAT has decreased from ₹39.5 Cr. in FY22 to ₹37 Cr., in FY23.

Competitive strength: Elofic has outperformed its peers in terms of Asset turnover ratio, Profitability ratios and in terms of margin. Moreover company has a 0 debt to equity ratio vs industry average of 73.5%. While the company's profit margins have declined this year compared to FY22, but the company is maintaing healthy margins as compared to its peers.

Thesis: Compared to its industry counterparts (Listed peer: Jay Bharat Maruti), Elofic appears to be undervalued, with a PE ratio of 16.0x (FY24). This valuation is significantly lower than the industry average of 31.5x (FY24) after adjusting for a 20% discount due to its non-listed status. As a result, the intrinsic value of the stock is estimated to be around ₹4,721 per share.

Past Recommended Stock: In April of last year, we recommended purchasing this stock at ₹1,925 per share. Over the past year, the stock has experienced a strong rally, delivering an impressive absolute return of over 39%.