High ROE and high ROCE multibagger stock: This compressor manufacturing company receives order from Siemens Ltd!

The stock gave multibagger returns of 360 per cent in 3 years and over 1,200 per cent in a decade.

Elgi Equipments Ltd informed that the company has received an order from Siemens Ltd for the supply and maintenance of air generation and treatment units and aux compressors. The order is required to be executed by the company over a period of 10 years of supplies and 35 years of maintenance from the date of supply. The order includes 2,400 sets of air screw compressors with dryer packages and 1,200 numbers of auxiliary compressors.

Incorporated in 1960, Elgi Equipments Limited along with its subsidiaries, is in the business of manufacturing and supplying air compressors & automotive equipment. It also provides related after-sales services.

According to the financials, Elgi Equipments has a market cap of over Rs 16,000 crore and has delivered good profit growth of 24.1 per cent CAGR over the last 5 years. The company has been maintaining a healthy dividend payout of 20.8 per cent and reported excellent numbers in its Quarterly Results & annual results.

On Wednesday, shares of Elgi Equipments surged 3.14 per cent to Rs 515.55 per share with an intraday high of Rs 519 and an intraday low of Rs 501.25. The shares of the company saw a spurt in volume by more than 2 times on BSE.

The shares of the company have an ROE of 24 per cent and a ROCE of 25 per cent. The stock gave multibagger returns of 360 per cent in 3 years and over 1,200 per cent in a decade. Investors should keep an eye on this Mid-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.