Multibagger Stock update: This BSE 500 company formed a wholly-owned subsidiary in Vietnam!

Shares of the company have gained more than 30 per cent in the last one year.

On March 2, 2023, ELGI Equipments Limited in the exchange filling informed that the company has formed a wholly-owned subsidiary company in the name “Elgi Compressors Vietnam LLC”, in Vietnam and has received the enterprise registration certificate dated March 1, 2023, on March 3, 2023. The subsidiary will be engaged in the business of air compressors and undertake the business of import, export, wholesaling, distribution, retailing, and providing service on installation, maintenance, and repair of compressors.

Elgi Equipments Limited has delivered multibagger returns to its shareholders. During this period, the company’s share price jumped from Rs 186.70 on March 5, 2022, to Rs 467.1 on March 3, 2023, an increase of 150 per cent in two year holding period. 

Elgi Equipments established in 1960, is engaged in manufacturing and supplying air compressors and automotive equipment. The company has a total of 29 subsidiaries and manufactures oil-lubricated and oil-free air compressors.

On March 3, the stock opened at Rs 481.30, with a high and low of Rs 484.75 and Rs 462.65. It closed trading at Rs 467.40, down by 2.22 per cent.  

The stock has a 52-week high of Rs 566.50 and a 52-week low of Rs 248.85. The company has a ROCE of 18.7 per cent and an ROE of 17.8 per cent with a market capitalisation of Rs 14,854 crore.