Motilal Oswal's price
The brokerage wrote in its note that Ellenbarrie Industrial Gases' business model is underpinned by strong customer retention and high entry barriers, arising from the core nature of industrial gases and the structural rigidity of long-term pipeline contracts.
India's industrial gas demand is projected to reach $1.75 billion by calendar year 2028 from $1.3 billion in 2024, growing at a Compounded Annual Growth Rate (CAGR) of 7.5%, which provides a favourable
Ellenbarrie has already increased its capacity by 4.5x over financial year 2023-2025 to 3,870 tonnes per day, and has intentions to scale the same to 4,630 tonnes per day b financial year 2027. The company also sees future opportunities in electronics through high purity gases.
All of these factors, along with the company's capacity expansion in key clusters positions the company for stable growth and margin expansions, Motilal Oswal said.
"We expect
Motilal Oswal also expects a 39% revenue CAGR, 49% EBITDA CAGR and a 52% Profit After Tax CAGR for the company over financial year 2025-2028.
Dependence on key customer relationships, prolonged disruption in facilities and slower demand in key sectors like
For its bull case, Motilal Oswal has a price target of ₹836 for Ellenbarrie, which implies a potential upside of 60% from Friday's closing levels. Here, it is assuming a revenue CAGR of 45% over financial year 2025-2028 led by faster penetration in newer geographies. EBITDA margins are likely to expand by nearly 990 basis points to reach nearly 45% by financial year 2028, led by better realisations, improving product mix and favourable operating leverage.
Shares of Ellenbarrie Industrial Gases are trading 3.1% higher at ₹540. The stock trades above its IPO price of ₹400.
