Motilal Oswal issued a buy rating for Ellenbarrie Industrial Gases with a target price of Rs 420. The firm said the company is well positioned to benefit from growth in India’s steel and solar manufacturing sectors. They expect strong revenue gains as the business expands its capacity through fiscal year 2029.
Motilal Oswal's research report on Ellenbarrie Industrial Gases Ellenbarrie Industrial Gases (ELLEN) is one of India's leading industrial gas manufacturers, supplying oxygen, nitrogen, argon and carbon dioxide to key enduser industries, including steel, healthcare, pharmaceuticals and manufacturing, through on-site and merchant supply models. We believe ELLEN is well positioned to benefit from the structural growth in India's domestic solar cell manufacturing ecosystem and the expansion of the steel and pharmaceutical industries. ELLEN is expanding its presence in high-value solar manufacturing applications through ultra-high-purity gases, with its upcoming central India facility (FY28) set to supply ammonia and nitrous oxide to capitalize on the sector's growth. India's crude steel capacity is projected to reach 604 MT by CY47, which presents a significant growth opportunity for ELLEN. The recently commercialized 320 TPD on-site plant in East India, backed by a long-term steel supply contract, along with planned capacity expansions, positions the company well to capitalize on rising industrial gas demand. Outlook We expect ELLEN to clock a CAGR of 40%/36%/26% in revenue/EBITDA/ PAT during FY26-29. We value the company based on 30x Sep'28 EPS. Reiterate BUY with a TP of INR420. For all recommendations report, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Ellenbarrie Industrial Gases - 2110026 - moti