3 Air Compressors Manufacturer, Industrial Gears Specialist and Water Treatment Solutions Provider Stocks With a Strong Future Roadmap: Elgi Equipments, Elecon Engineering and Ion Exchange (India)
- October 27, 2026
- Posted by: Chaitanya Auti
- Category: Best Stocks
Elgi Equipments, Elecon Engineering and Ion Exchange (India): ROE of 10.7% to 19.3% and FY22 to FY26 revenue CAGR of 12.1% to 19.0%. Prices as of 26 Oct 2026.
Quick Answer
The three compressor, gear and water treatment stocks to watch are Elgi Equipments, Elecon Engineering and Ion Exchange (India). Their return on equity ranges from 10.7% to 19.3%, and their revenue compound annual growth from FY22 to FY26 ranges from 12.1% to 19.0%. Elgi Equipments has the highest return on equity at 19.3%, while Elecon Engineering has the fastest revenue growth at 19.0% a year. Prices are based on the 26 October 2026 close, and this article is educational, not investment advice.
Compressor, gear and water treatment stocks let investors follow companies that serve a growing part of the Indian economy. Elgi Equipments, Elecon Engineering and Ion Exchange (India) cover an air compressors manufacturer, an industrial gears specialist and a water treatment solutions provider.
This list covers three compressor, gear and water treatment stocks with complete current figures: Elgi Equipments, Elecon Engineering and Ion Exchange (India). Every figure comes from the latest reported financials and the 26 October 2026 market close. Companies without complete current figures were left out.
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What Are Compressor, Gear and Water Treatment Stocks?
Compressor, gear and water treatment stocks are listed industrial companies that make compressors, gears and water treatment systems for factories, municipalities and homes. Their earnings depend on factory capacity use, infrastructure spending, order books and input costs.
Compressor, Gear and Water Treatment Stocks at a Glance
| Company | CMP (Rs) | Market Cap (Rs Cr) | P/E | Industry P/E | ROE (%) | D/E |
|---|---|---|---|---|---|---|
| Elgi Equipments | 520.2 | 17,259 | 38.5 | 44.4 | 19.3 | 0.24 |
| Elecon Engineering | 424.05 | 9,361 | 38.3 | 41.5 | 12.4 | 0.14 |
| Ion Exchange (India) | 332.65 | 5,397 | 55.2 | 22.7 | 10.7 | 0.36 |
On valuation, Elgi Equipments and Elecon Engineering trade at a P/E below the industry P/E, while Ion Exchange (India) trades above it, which reflects the growth the market already expects. Readers comparing compressor, gear and water treatment stocks should look at return on equity and debt together, since a high return earned with low debt is easier to sustain.
Why Do Compressor, Gear and Water Treatment Stocks Have a Strong Roadmap in India?
Compressor, gear and water treatment stocks have a strong roadmap in India because new factories, infrastructure projects and rising water needs keep lifting demand for industrial machinery and treatment systems.
- Factory capacity. New plants need compressors and gearboxes.
- Water needs. Industries and cities invest in treatment.
- Exports. International subsidiaries widen the customer base.
Why Elgi Equipments Features Among These Compressor, Gear and Water Treatment Stocks
Among the compressor, gear and water treatment stocks on this list, Elgi Equipments, based in Coimbatore, is a major manufacturer of air compressors for industrial customers, selling in India and in international markets through its own subsidiaries.
The company has a return on equity of 19.3%, a debt to equity ratio of 0.24 and a market capitalisation of Rs 17,259 crore. The stock trades at a P/E of 38.5, below the industry P/E of 44.4.
Revenue rose from Rs 2,580 crore in FY22 to Rs 4,068 crore in FY26, a compound annual growth rate of 12.1%. Net profit grew from Rs 178 crore in FY22 to Rs 430 crore in FY26, which works out to a compound annual growth rate of 24.6%. In the June 2026 quarter, revenue grew 22.1% year on year to Rs 1,083 crore, while net profit rose 20.7% to Rs 103 crore.
Roadmap: The company is growing its oil-free and energy-efficient compressor range and building a service-led annuity through spares and aftermarket support. International units add geographic spread, and automation in manufacturing improves efficiency.
What to watch: Follow industrial capital spending trends and the contribution of international subsidiaries.
Why Elecon Engineering Features Among These Compressor, Gear and Water Treatment Stocks
Among the compressor and gearbox maker shares on this list, Elecon Engineering is a Gujarat-based maker of industrial gears and material handling equipment that supplies steel, cement, power, mining and port customers.
Revenue rose from Rs 1,221 crore in FY22 to Rs 2,447 crore in FY26, a compound annual growth rate of 19.0%. Net profit grew from Rs 140 crore in FY22 to Rs 341 crore in FY26, which works out to a compound annual growth rate of 24.8%.
The company has a return on equity of 12.4%, a debt to equity ratio of 0.14 and a market capitalisation of Rs 9,361 crore. The stock trades at a P/E of 38.3, below the industry P/E of 41.5.
Roadmap: The company benefits from steady capital spending in core industries and from export orders for gearboxes. A focus on higher-power gear systems helps it win larger orders.
What to watch: Follow order inflows, export demand and margins in the gear business.
Why Ion Exchange (India) Features Among These Compressor, Gear and Water Treatment Stocks
Among the three companies on this list, Ion Exchange (India) provides water and wastewater treatment solutions, including chemicals, resins, engineering projects and consumer water purifiers, for industries, municipalities and homes.
In the June 2026 quarter, revenue grew 17.6% year on year to Rs 706 crore. Revenue rose from Rs 1,619 crore in FY22 to Rs 3,001 crore in FY26, a compound annual growth rate of 16.7%.
Net profit for FY26 was Rs 143 crore, a net margin of 4.8%. The company has a return on equity of 10.7%, a debt to equity ratio of 0.36 and a market capitalisation of Rs 5,397 crore. The stock trades at a P/E of 55.2, above the industry P/E of 22.7.
Roadmap: The company benefits from tighter water reuse and discharge norms, which lift demand for treatment plants and recycling systems. A mix of projects, chemicals and consumer products spreads its revenue.
What to watch: Track order inflows in water projects, chemicals demand and consumer product growth.
Elgi Equipments vs Elecon Engineering vs Ion Exchange (India) on Key Financials
The table below sets the three compressor, gear and water treatment stocks side by side on revenue, profit and margin, using reported figures.
| Company | FY22 Revenue (Rs Cr) | FY26 Revenue (Rs Cr) | Revenue CAGR (FY22-FY26) | FY26 Net Profit (Rs Cr) | FY26 Net Margin |
|---|---|---|---|---|---|
| Elgi Equipments | 2,580 | 4,068 | 12.1% | 430 | 10.6% |
| Elecon Engineering | 1,221 | 2,447 | 19.0% | 341 | 13.9% |
| Ion Exchange (India) | 1,619 | 3,001 | 16.7% | 143 | 4.8% |
Elgi Equipments posts the highest return on equity in this group at 19.3%. Elgi Equipments has the largest FY26 revenue at Rs 4,068 crore, and Elecon Engineering shows the fastest revenue growth with a 19.0% compound annual rate. A useful habit with compressor, gear and water treatment stocks is to check each new quarterly result against the capacity plans the company described earlier.
Key Risks to Check Before Investing in Compressor, Gear and Water Treatment Stocks
Every theme carries risks that deserve a check before any decision. For these compressor, gear and water treatment stocks, the main points are:
- Order timing. Project orders can shift between periods.
- Input costs. Steel and component prices affect margins.
- Valuation levels. Some of these companies trade at high earnings multiples, so growth must continue to justify them.
Treat this list as a starting point for research and not as a recommendation. Read the latest results presentation, check the management commentary on order books or capacity plans, and compare each company with its peers before you decide anything.
Use the Univest Stock Screener to filter compressor, gear and water treatment stocks by market capitalisation, P/E, ROE and growth, and build your own shortlist.
Final Thoughts on Compressor, Gear and Water Treatment Stocks
Compressor, gear and water treatment stocks reward investors who follow demand trends, order books and margins together. Elgi Equipments, Elecon Engineering and Ion Exchange (India) each have a clear plan to expand. Based on the 26 October 2026 close, Elgi Equipments trades at Rs 520.2, Elecon Engineering at Rs 424.05 and Ion Exchange (India) at Rs 332.65.
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Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
What are compressor, gear and water treatment stocks?
Ans. Compressor, gear and water treatment stocks are listed industrial companies that make compressors, gears and water treatment systems for factories, municipalities and homes. Their earnings depend on factory capacity use, infrastructure spending, order books and input costs. This list looks at three of them, Elgi Equipments, Elecon Engineering and Ion Exchange (India), using reported FY22 to FY26 financials and the 26 October 2026 closing prices.
Which compressor, gear and water treatment stocks are covered in this list?
Ans. This list covers Elgi Equipments, Elecon Engineering and Ion Exchange (India). Based on the 26 October 2026 close, Elgi Equipments traded at Rs 520.2, Elecon Engineering at Rs 424.05 and Ion Exchange (India) at Rs 332.65. Their return on equity ranges from 10.7% to 19.3%, and their revenue compound annual growth from FY22 to FY26 ranges from 12.1% to 19.0%.
Why do compressor, gear and water treatment stocks have a strong future roadmap in India?
Ans. Compressor, gear and water treatment stocks have a strong roadmap in India because new factories, infrastructure projects and rising water needs keep lifting demand for industrial machinery and treatment systems. The main drivers are as follows. Factory capacity. New plants need compressors and gearboxes. Water needs. Industries and cities invest in treatment. Exports. International subsidiaries widen the customer base. Together these factors give the companies on this list a visible path for growth over the coming years.
How has Elgi Equipments performed financially?
Ans. Revenue rose from Rs 2,580 crore in FY22 to Rs 4,068 crore in FY26, a compound annual growth rate of 12.1%. Net profit grew from Rs 178 crore in FY22 to Rs 430 crore in FY26, which works out to a compound annual growth rate of 24.6%. In the June 2026 quarter, revenue grew 22.1% year on year to Rs 1,083 crore, while net profit rose 20.7% to Rs 103 crore. The company has a return on equity of 19.3%, a debt to equity ratio of 0.24 and a market capitalisation of Rs 17,259 crore. The stock trades at a P/E of 38.5, below the industry P/E of 44.4. Looking ahead, the company is growing its oil-free and energy-efficient compressor range and building a service-led annuity through spares and aftermarket support. International units add geographic spread, and automation in manufacturing improves efficiency.
How has Elecon Engineering performed financially?
Ans. Revenue rose from Rs 1,221 crore in FY22 to Rs 2,447 crore in FY26, a compound annual growth rate of 19.0%. Net profit grew from Rs 140 crore in FY22 to Rs 341 crore in FY26, which works out to a compound annual growth rate of 24.8%. The company has a return on equity of 12.4%, a debt to equity ratio of 0.14 and a market capitalisation of Rs 9,361 crore. The stock trades at a P/E of 38.3, below the industry P/E of 41.5. Looking ahead, the company benefits from steady capital spending in core industries and from export orders for gearboxes. A focus on higher-power gear systems helps it win larger orders.
How has Ion Exchange (India) performed financially?
Ans. Revenue rose from Rs 1,619 crore in FY22 to Rs 3,001 crore in FY26, a compound annual growth rate of 16.7%. Net profit for FY26 was Rs 143 crore, a net margin of 4.8%. In the June 2026 quarter, revenue grew 17.6% year on year to Rs 706 crore. The company has a return on equity of 10.7%, a debt to equity ratio of 0.36 and a market capitalisation of Rs 5,397 crore. The stock trades at a P/E of 55.2, above the industry P/E of 22.7. Looking ahead, the company benefits from tighter water reuse and discharge norms, which lift demand for treatment plants and recycling systems. A mix of projects, chemicals and consumer products spreads its revenue.
What risks should investors check before buying compressor, gear and water treatment stocks?
Ans. Investors should check a few risks before buying compressor, gear and water treatment stocks. Order timing. Project orders can shift between periods. Input costs. Steel and component prices affect margins. Valuation levels. Some of these companies trade at high earnings multiples, so growth must continue to justify them. Reading the latest results presentation and comparing each company with its peers helps judge how these risks apply to each stock.
Is this list of compressor, gear and water treatment stocks investment advice?
Ans. No. This article is educational and uses publicly available data as of the 26 October 2026 close. Please verify figures on NSE and BSE, read company filings and consult a SEBI registered adviser before investing. Univest is SEBI registered research analyst INH000013776.