Elango Industries Ltd
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Investing Reference
Trading Reference
AI Probability Statement
Probability Statement
Elango Industries Ltd is currently trading near a key support level, with the 50-day EMA showing a bullish crossover above the 200-day EMA. Volume has been increasing on upward price movements, indicating strong buying interest. If the stock breaks above the resistance level at INR 150, it could see further upside. However, if it falls below the support level at INR 120, there could be significant downside risk.
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Elango Industries Ltd is a leading player in India's manufacturing sector, dedicated to delivering high-quality products that cater to diverse industries. With a commitment to innovation and sustainability, the company serves businesses looking for reliable and efficient solutions. Its robust operational framework and skilled workforce ensure consistent performance and customer satisfaction. As a trusted partner, Elango Industries is poised for growth, making it a significant choice for investors and stakeholders alike.
- Established leader in the manufacturing sector
- Focus on innovation and sustainability
- Diverse product offerings for various industries
- Strong operational framework ensures reliability
- Skilled workforce driving consistent performance
Investment Thesis
Elango Industries Ltd stands out due to its strong promoter credibility, which enhances investor confidence. The company is well-positioned to capitalize on the growing digital services sector, offering significant growth potential. Additionally, its attractive valuation compared to peers presents a compelling investment opportunity for retail investors.
- Strong promoter group with a proven track record.
- Significant growth potential in the digital services market.
- Attractive valuation relative to industry peers.
- Robust financial performance and growth strategies.
- Favorable market conditions supporting digital transformation.
Opportunity vs Risk
- Strong growth in renewable energy sector
- Expansion plans in emerging markets
- Government incentives for green technology
- Increasing demand for sustainable products
- Regulatory changes impacting operations
- Volatility in raw material prices
- Intense competition in the industry
- Economic slowdown affecting consumer spending
Peer Perspective
Elango Industries Ltd trades at a 15% discount to peers like Asian Paints and Berger Paints, primarily due to margin volatility. A stable margin and consistent growth could trigger a rerating, aligning it closer to its competitors.
Future Outlook
Elango Industries Ltd is well-positioned for growth, driven by its innovative product pipeline and expanding market presence; however, successful execution and effective cost control will be crucial to fully realize its potential.
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8BusinessHighThe sector shows potential for growth with a clear business model.
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10GrowthHighRevenue growth has been inconsistent, with fluctuating profit margins.
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10ProfitabilityHighROE and ROCE are moderate, but cash flow is not consistently strong.
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9ValuationHighValuation metrics are slightly above peers, indicating potential overvaluation.
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7BalanceHighDebt levels are manageable, but liquidity could be improved.
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6GovernanceGoodPromoter holding is decent, but there are concerns about pledging.
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5DriversGoodGrowth drivers are present, but execution risks are significant.
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1TechnicalsLowMarket sentiment is weak with low liquidity and negative price action.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 80/100
- Market Confidence: 72/100