LINDEINDIA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.2

📊 Core Financials & Profitability

Earnings & Margins: PAT declined slightly from ₹118 Cr to ₹105 Cr QoQ, with a −5.8% profit variation. EPS of ₹51.8 is solid, though not exceptional for a ₹6,446 stock.

Return Metrics

ROE: 12.3% and ROCE: 16.9% — respectable, indicating efficient capital deployment.

Debt Profile: Debt-to-equity at 0.01 — virtually debt-free, a major strength in capital-intensive industries.

Dividend Yield: 0.07% — minimal, consistent with reinvestment into growth.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 125 Extremely high vs. industry PE of 70.2 — richly valued.

P/B Ratio ~14.5 Elevated relative to book value ₹443.

PEG Ratio 9.04 Highly inflated — suggests valuation far exceeds earnings growth.

🔍 Conclusion: Linde India is trading at a steep premium. While the fundamentals are strong, valuation metrics signal caution for new investors.

🏭 Business Model & Competitive Edge

Core Operations: Linde India is a leading industrial gases and engineering company, part of Linde Plc. It operates India’s largest air separation plant and runs over 35 facilities nationwide

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Strategic Strengths

Strong presence in chemicals and industrial gases, with high entry barriers.

Asset-light engineering division and long-term contracts with industrial clients.

Institutional sentiment is mixed: DII holdings up 0.13%, FII slightly down.

Growth Outlook

Delivered 1140.8% returns over 5 years with a 17% profit margin

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Analyst sentiment is cautious: 1-year price target of ₹4,133 implies a −36% downside from current levels

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Valuation score: 22.2/100 — expensive; financial strength score: 65/100 — solid

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📉 Technicals & Entry Zone

RSI: 49.4 — neutral, offering buying comfort.

MACD: 1.77 — mild bullish signal.

DMA Levels: Price hovering near both 50-DMA and 200-DMA — consolidation zone.

📌 Suggested Entry Zone: ₹6,200–₹6,400 — near technical support and moving averages.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, global parentage, and industrial demand support long-term value.

Avoid Fresh Entry at Current Levels: Wait for valuation to cool or earnings to catch up.

Monitor: Margin trends, capex cycles, and gas demand across sectors.

You can explore Trendlyne’s analyst forecast and valuation breakdown and Stocks-Buy’s multi-year price targets for deeper insights. Let me know if you'd like a peer comparison with Praj Industries or Air Products next.

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trendlyne.com

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stockpricearchive.com

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