At a Glance
Ellenbarrie Industrial Gases just posted Q1 FY26 numbers that can make even Linde raise an eyebrow. Revenue ₹83.6 Cr (+24% YoY), PAT ₹18.7 Cr (+16% YoY), and an OPM of 37% – margins so fat they need their own gas cylinder. But wait, the stock trades at a mind-numbing P/E of 101. That’s not valuation, that’s a moonshot bet on infinite oxygen demand.
Introduction
For over 50 years, Ellenbarrie has been silently pumping oxygen, nitrogen, and specialty gases into India’s industries. From medical to defense, their gases breathe life into multiple sectors. Yet, the company’s stock is now breathing on a different planet – trading at levels that scream “priced for perfection.” Can this gas play sustain its pressure, or will investors run out of oxygen?
Business Model (WTF Do They Even Do?)
- Core: Manufacture & supply of industrial gases (oxygen, nitrogen, argon, helium, hydrogen, etc.).
- Clients: Medical, energy, chemical, defense sectors.
- Edge: Largest 100% Indian-owned gas producer by capacity.
- Expansion Mode: Acquisition of Truair Industrial Gases (₹5.4 Cr) to widen reach.
Roast: They make gases. Yes, gases. Not Tesla batteries. Yet the market values them like they’re building the next SpaceX oxygen booster.
Financials Overview
Q1 FY26:
- Revenue: ₹83.6 Cr (+24% YoY)
- EBITDA: ₹31 Cr (margin 37%)
- PAT: ₹18.7 Cr (+16% YoY)
- EPS: ₹1.33
FY25:
- Revenue: ₹312 Cr
- PAT: ₹83 Cr
- EPS: ₹6.36
Fresh P/E Calculation: ₹577 / ₹6.36 = 90.7 (actual TTM basis; still sky-high).
Commentary: Growth is there, but the P/E implies investors expect every cylinder to print gold.
Valuation
- P/E Method: Sector avg ~40 → FV ≈ ₹250.
- EV/EBITDA: FY25 EBITDA ₹110 Cr, 12× multiple → FV ≈
