Ellenbarrie Industrial Gases Ltd – From Oxygen Cylinders to IPO Oxygen High: Sales ₹312 Cr, Profits ₹80 Cr, P/E 97x
1. At a Glance
Ellenbarrie Industrial Gases is India’s desi answer to Linde, supplying oxygen, nitrogen, argon, and every gas you didn’t know you needed (including the one you inhaled during your last surgery). With 50+ years of operations, 8 plants, and 3,691 TPD capacity, it just raised ₹852 Cr via IPO in July 2025. But here’s the catch – at CMP ₹553, the stock trades at a P/E of 97x, which means investors are paying luxury perfume prices for industrial oxygen.
2. Introduction
If Reliance sells everything from oil to JioCinema, Ellenbarrie sells everything from oxygen to welding gases. Started decades ago in Kolkata, the company is now the largest 100% Indian-owned industrial gases firm by capacity.
FY24 revenue split: 84% industrial & medical gases, 16% project engineering. Oxygen and nitrogen dominate sales (~85% combined), but the portfolio is a full buffet – argon, hydrogen, CO₂, acetylene, helium, dry ice, LPG, and specialty gases.
The IPO was oversubscribed (because retail loves anything “oxygen” post-COVID), raising funds for debt repayment and expansion. With 77% promoter holding, Ellenbarrie is still very much family-owned but dressed up for Dalal Street.
But let’s be clear: annual sales = ₹312 Cr, market cap = ₹7,794 Cr. Basically, investors are betting this sleepy Eastern India oxygen company will suddenly become the “next Linde India.” Ambitious? Definitely. Overpriced? Well…
3. Business Model – WTF Do They Even Do?
Ellenbarrie’s business is split into two:
Industrial & Medical Gases (84% revenue) – Bulk supplies via cryogenic tankers (75.5% revenue), packaged cylinders (20%), and onsite pipelines (4.5%). End sectors: steel (28.5%), pharma & chemicals (29.5%), healthcare (8%), defense (4%).
Project Engineering (16% revenue) – Setting up air separation units (ASU), VPSA/PSA oxygen plants, and hospital gas pipelines. Also sells ventilators and sterilizers – basically, “gas + ICU setup.”
Clients? 1,836 of them, with 92% repeat. Translation: Once you hook a steel mill or a hospital to your oxygen pipeline, they won’t ghost you easily.
4. Financials Overview
Metric
Latest Qtr (Jun’25)
Same Qtr LY
Previous Qtr
YoY %
QoQ %
Revenue (₹ Cr)
83.6
67.3
82.0
24.3%
2.0%
EBITDA (₹ Cr)
31.0
22.0
25.0
40.9%
24.0%
PAT (₹ Cr)
18.7
16.2
19.0
15.4%
-1.6%
EPS (₹)
1.33
1.15
1.39
15.6%
-4.3%
Annualised EPS = ₹6.36. At CMP ₹553, P/E = ~97x. That’s more inflated than the balloons at your cousin’s wedding.
5. Valuation – Fair Value Range
P/E Method: EPS = ₹6.36. Even if we give it industry premium (60–70x, same as Linde), fair value = ₹380–₹445.
EV/EBITDA Method: EV = ₹8,038 Cr, EBITDA = ₹110 Cr (FY25) → EV/EBITDA = 73x. Industry median ~20–25x → fair value range = ₹220–₹350.
