Ellenbarrie Industrial Gases
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Ellenbarrie Industrial Gases is poised for accelerated growth, driven by a robust capacity expansion strategy and a favorable demand outlook in India's industrial sector. Management's confidence stems from the commissioning of new facilities, including the East India on-site plant and the Uluberia 2 merchant plant, which are expected to significantly enhance revenue streams. The company's focus on maintaining margins above 40% through operational efficiencies and renewable energy initiatives further supports Vista's positive financial outlook, which anticipates improved profitability and attractive valuation metrics. Despite potential headwinds from Argon price volatility and macroeconomic uncertainties, the strong inquiry pipeline from the steel industry and strategic diversification into high-value segments like electronics position Ellenbarrie favorably. The industrial chemicals sector's current growth trajectory, characterized by stabilizing prices and improving margins, complements Ellenbarrie's strategic initiatives. Over the next 12-24 months, key opportunities include the successful ramp-up of new capacities and expansion into emerging markets, while watchpoints include global supply chain disruptions and competitive pressures from larger players. Overall, Ellenbarrie's strategic positioning and disciplined capital allocation underpin a strong investment case
Why We Like This Stock
- Successful commissioning of new facilities is expected to significantly boost revenue
- Management's focus on maintaining high margins through operational efficiencies and renewable energy initiatives
- Strong inquiry pipeline from the steel industry supports positive growth expectations
Things To Watch Out For
- Potential volatility in Argon prices could impact margins
- Macroeconomic uncertainties may pose risks to industrial activity
- Competitive pressures from larger multinational players in the industrial gases market
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 269 | 312 | 342 | 426 | 512 |
| Profit Before Tax (Cr.) | 59 | 104 | 135 | 212 | 236 |
| PBT Margin | 21.9% | 33.3% | 3947.4% | 49.7% | 46.1% |
| Net Profit (Cr.) | 49 | 85 | 112 | 176 | 195 |
| Earnings Per Share | 3.5 | 6.1 | 7.9 | 12.5 | 13.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Motilal Oswal | ▲ Buy | 380 | 11-Aug-2026 |
Company Overview
Show Company Profile
Ellenbarrie Industrial Gases Limited manufactures and supplies industrial gases in India and internationally. The company operates in two segments, Sale of Gases and Project Engineering Services. It offers oxygen, nitrogen, argon, helium, hydrogen, carbon dioxide, nitrous oxide, acetylene, and specialty gases for steel, pharma, shipbuilding, fabrication, food processing, and healthcare sectors. The company also provides project engineering services, including design, engineering, supply, installation, and commissioning of tonnage. In addition, it engages in the supply, installation, and commissioning of medical gas pipeline systems; and supply of medical equipment to healthcare facilities. Further, it supplies medical equipment, such as emergency and transport ventilators; central sterilisation system; lung function testing systems; and electro-cardiograph machines. The company was incorporated in 1973 and is headquartered in Kolkata, India.