📌 At a Glance
Everest Kanto Cylinder Ltd (EKC) is up 140% from its 52-week low of ₹55 — now chilling at ₹132. But FY25 profits? Flat. Literally ₹97.7 Cr vs ₹97.6 Cr last year. While revenue jumped 22.6% to ₹1,499 Cr, margins slipped and PAT stayed stuck. So is this just a temporary gas leak… or the end of the CNG party?
🏭 About the Company
| Detail | Info |
|---|---|
| Name | Everest Kanto Cylinder Limited |
| Founded | 1978 |
| Headquarters | Mumbai, India |
| Ticker | NSE: EKC |
| CMP (as of May 26, 2025) | ₹132 |
| Sector | Clean Energy / Industrial Gases |
| Business | Manufacturer of seamless steel gas cylinders used in CNG vehicles, industry, fire safety, medical oxygen, aerospace |
🧪 EKC manufactures cylinders for storage of compressed gases like oxygen, hydrogen, CNG, nitrogen, etc. It supplies to auto companies, industrial gas firms, hospitals, and even defence.
🌍 Plants in India (Tarapur, Kandla SEZ), Dubai (Jebel Ali), and Pittsburgh, USA. Annual capacity ~1.5 million cylinders.
🧑💼 Key Managerial Personnel (KMP)
- Pushkar Khurana – Chairman & Executive Director
- Puneet Khurana – Managing Director
- Sanjiv Kapur – CFO
- Vishal Totla – Company Secretary
These are the folks who kept the company growing… but apparently forgot to grow PAT this year.
📊 Financials (FY25 vs FY24)
🔹 Consolidated Highlights
| Metric | FY25 | FY24 | YoY Change |
|---|---|---|---|
| Revenue | ₹1,499.2 Cr | ₹1,223.0 Cr | 🔼 22.6% |
| EBITDA | ₹175.5 Cr | ₹160.5 Cr | 🔼 9.4% |
| EBITDA Margin | 11.7% | 13.1% | 🔻 -141 bps |
| PBT | ₹130.4 Cr | ₹120.3 Cr | 🔼 8.4% |
| PAT | ₹97.7 Cr | ₹97.6 Cr | ➖ 0.1% |
| PAT Margin | 6.5% | 8.0% | 🔻 -146 bps |
🔹 Standalone Snapshot
| Metric | FY25 | FY24 | YoY Change |
|---|---|---|---|
| Revenue | ₹946.2 Cr | ₹771.5 Cr | 🔼 22.6% |
| PAT | ₹53.3 Cr | ₹53.9 Cr | 🔻 -1.0% |
| PAT Margin | 5.6% | 7.0% | 🔻 -135 bps |
💥 Revenue growth strong.
😶 Profit? Flat.
📉 Margins? Down.
Dividend? A cute ₹0.70 per share. Thanks, I guess.
🔮 Forward-Looking Fair Value (FV) Calculation
Let’s break it down using EPS and a fair industry P/E:
- FY25 EPS = ₹6 (PAT ₹97.7 Cr / ~16.3 Cr shares)
- Industry Average P/E: 18x
- 👉 Fair Value = ₹6 × 18 = ₹108
📍CMP = ₹132
➡️ EKC is trading 22% above its FV — even after flat profit growth.
🚀 Estimated Growth & Industry Outlook
- CNG Vehicle Adoption: Up in both passenger and commercial segments. CNG infra expanding aggressively.
- Govt Push: Over 5,500 CNG stations now. Targeting 11,000+ by 2030.
- Export Growth: US + Middle East seeing consistent demand.
- Egypt Project: Greenfield plant to go live in Q3 FY26 — could be a big new leg of growth.
- EV Threat? Minimal — CNG still dominates long-haul commercial fleets due to range and cost.
📉 But until that Egypt project kicks in… margins look weak.
🧠 EduInvesting Take
“This stock flew 140% from the bottom — but profit barely walked. Bro, kya hawa bhar rakhi hai?”
Everest Kanto’s FY25 performance is the equivalent of doing 100 push-ups… and still looking the same. Revenue pumped. PAT dumped.
If you’re betting on clean energy, sure — EKC is a legit long-term play. But don’t ignore the current reality:
- Margins are shrinking
- PAT is flat despite topline surge
- CMP is ahead of fundamentals
This isn’t a scam — but it’s not a steal either.
⚠️ Risks & Red Flags
- ❌ Margins falling across both consolidated and standalone
- ❌ Egypt project delays could derail FY26 growth hopes
- ❌ High competition in industrial gas cylinders
- ❌ Raw material cost volatility
- ❌ Export dependence = forex risks
- ❌ CMP may already price in future growth
📌 Final Word
Everest Kanto is a real business with a solid export footprint, riding the tailwinds of India’s clean fuel revolution. But FY25 was more like a pit stop than a podium finish.
If FY26 delivers — with margin recovery and Egypt launch — then maybe CMP ₹132 will feel justified. Until then, you’re holding a stock that looks like a multibagger, but profits like a midcap slacker.
🗓️ Published: May 26, 2025
✍️ By: Prashant Marathe
Tags: Everest Kanto Cylinder, EKC results, CNG stock, FY25 profit flat, NSE EKC, Clean energy India, Egypt CNG project, EduInvesting
