Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Atlas Copco, Ingersoll Rand: Who's better?

Jul 3, 2000

Consider this: both Ingersoll Rand and Atlas Copco are among India's leading compressor and mining and construction equipment companies. Both companies are subsidiaries of MNCs and both are trading at near their 52 week lows. But the similarity ends here. Their operational performances are in stark contrast to each other.

FY2000 Ingersoll Atlas Copco
Sales (Rs m) 3,894 1,157
Operating Profit Margin (%) 16.0% 10.6%
Profit after Tax (Rs m) 524 68
Net profit margin (%) 13.5% 5.9%
Earnings per share (Rs) 16.6 9.4
P/E Ratio (X) 11.2 11.4
Market Price (Rs m) 186 107
52-week high/low (Rs) 569/180 272/107
Market cap to sales (X) 1.51 0.67

While Ingersoll's market capitalisation (current price X shares outstanding) is 1.5 times its sales, the same ratio for Atlas Copco is a much lower 0.7 times. The market is in other words, is giving a higher value to Ingersoll's sales. This is because Ingersoll earns more on each rupee sale compared to Atlas Copco, underlining the company's inherent strengths.

In the last couple of years both companies have faced difficult market conditions and have reported staid growth. Both have undertaken restructuring of business operations and are trying to cut costs, the effects of which are likely to be felt in the coming years.

With the economy showing signs of improving, infrastructure development is likely to be at the heart of India's development. As the construction and industrial activities pick up, these two companies are likely to benefit. But as indicated above Ingersoll Rand is more profitable than Atlas Copco and therefore will continue to attract a premium on the bourses vis-a-vis Atlas Copco.

Equitymaster requests your view! Post a comment on "Atlas Copco, Ingersoll Rand: Who's better?". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.