LINDEINDIA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Rating: 3.9

Here’s a comprehensive breakdown of Linde India Ltd. (LINDEINDIA)

🧮 Core Financials

Profitability

ROE: 12.4%, ROCE: 16.9% — decent but not exceptional for a high-growth industrial stock.

Quarterly PAT

₹118 Cr. vs ₹116 Cr. — 12.3% growth, modest but steady.

Debt Profile

Debt-to-equity: 0.01 — virtually debt-free, a strong financial position.

Cash Flow

Stable cash generation inferred from low debt and consistent profits.

📉 Valuation Metrics

Metric Value Insight

P/E Ratio 124 Extremely high — suggests overvaluation vs industry PE of 64.5

P/B Ratio ~14.65 Elevated, reflecting premium pricing

PEG Ratio 9.08 Very high — indicates expensive growth

EPS ₹53.3 Solid earnings, but not justifying valuation

🏢 Business Model & Competitive Edge

Industry Leader: Operates India’s largest air separation plant and over 35 facilities nationwide

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Global Backing: Part of Linde Plc — access to global tech and scale.

Diversified Offerings: Industrial gases, engineering solutions, and long-term contracts (e.g., with Asian Paints)

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Recent Moves: Expansion via acquisitions and new plant launches

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📈 Technical & Sentiment Indicators

RSI: 41.9 — neutral zone, not oversold.

MACD: -84.3 — bearish momentum.

Volume: Below average — low trading interest.

DMA 50 & 200: Price below both — short-term weakness.

🎯 Entry Zone & Long-Term View

Suggested Entry: ₹6,300–₹6,500 — near support and 52-week low.

Target Range: ₹7,800–₹8,500 over long term, assuming earnings catch up to valuation.

Holding View: Quality company with strong fundamentals, but currently overvalued. Best suited for long-term investors with patience and conviction.

Would you like a side-by-side with Praxair or other industrial gas players next?

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