LINDEINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | LINDEINDIA | Market Cap | 62,425 Cr. | Current Price | 7,320 ₹ | High / Low | 7,870 ₹ |
| Stock P/E | 107 | Book Value | 463 ₹ | Dividend Yield | 0.06 % | ROCE | 16.9 % |
| ROE | 12.3 % | Face Value | 10.0 ₹ | DMA 50 | 6,968 ₹ | DMA 200 | 6,560 ₹ |
| Chg in FII Hold | 0.02 % | Chg in DII Hold | -0.07 % | PAT Qtr | 192 Cr. | PAT Prev Qtr | 169 Cr. |
| RSI | 57.7 | MACD | 82.3 | Volume | 28,213 | Avg Vol 1Wk | 35,119 |
| Low price | 5,653 ₹ | High price | 7,870 ₹ | PEG Ratio | 7.76 | Debt to equity | 0.02 |
| 52w Index | 75.2 % | Qtr Profit Var | 68.1 % | EPS | 68.4 ₹ | Industry PE | 37.8 |
📊 Linde India (LINDEINDIA) shows strong operational performance but stretched valuations. With a market cap of ₹62,425 Cr. and current price of ₹7,320, it trades close to its 52-week high of ₹7,870. Efficiency metrics are decent — ROE at 12.3% and ROCE at 16.9% — supported by quarterly PAT growth (+68.1%). However, valuation is expensive with a P/E of 107 compared to the industry average of 37.8, and PEG ratio at 7.76 highlights poor growth-adjusted valuation. Debt-to-equity is very low at 0.02, reflecting a strong balance sheet. EPS at ₹68.4 remains healthy, while technicals show momentum with RSI at 57.7 and MACD positive.
💡 Entry Zone: ₹7,000–₹7,150 (near 50 DMA support)
📈 Long-Term Holding: Suitable for selective accumulation, but investors should be cautious of valuation risks. Best for momentum-driven trades with accumulation on dips.
✅ Positive
- Strong quarterly PAT growth (+68.1%)
- Healthy EPS (₹68.4) supports earnings visibility
- Low debt-to-equity ratio (0.02), indicating strong financial stability
- Technical indicators (RSI 57.7, MACD 82.3) show bullish momentum
⚠️ Limitation
- High valuation (P/E 107 vs industry 37.8)
- PEG ratio (7.76) signals poor growth-adjusted valuation
- ROE (12.3%) and ROCE (16.9%) are moderate compared to valuation levels
- DII holdings decreased (-0.07%), showing reduced domestic confidence
📉 Company Negative News
- Valuation stretched significantly above industry average
- Institutional participation mixed, with DIIs reducing exposure
📈 Company Positive News
- PAT improved sequentially (₹169 Cr → ₹192 Cr)
- FIIs slightly increased holdings (+0.02%)
- Strong technical momentum supported by price above DMA 50 and DMA 200
🏭 Industry
- Industrial gases sector trades at lower P/E (37.8), making Linde India relatively expensive
- Sector outlook remains positive with demand from manufacturing and healthcare industries
🔎 Conclusion
Linde India is financially stable with strong earnings momentum, but valuations are stretched. Entry near ₹7,000–₹7,150 offers a risk-managed opportunity. Long-term investors should accumulate cautiously, focusing on dips, while short-term traders may benefit from momentum-driven setups.