LINDEINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.1
| Stock Code | LINDEINDIA | Market Cap | 50,637 Cr. | Current Price | 5,926 ₹ | High / Low | 7,870 ₹ |
| Stock P/E | 100 | Book Value | 463 ₹ | Dividend Yield | 0.08 % | ROCE | 16.9 % |
| ROE | 12.3 % | Face Value | 10.0 ₹ | DMA 50 | 5,971 ₹ | DMA 200 | 6,252 ₹ |
| Chg in FII Hold | -0.32 % | Chg in DII Hold | 0.20 % | PAT Qtr | 169 Cr. | PAT Prev Qtr | 105 Cr. |
| RSI | 48.6 | MACD | -8.77 | Volume | 5,981 | Avg Vol 1Wk | 15,127 |
| Low price | 5,202 ₹ | High price | 7,870 ₹ | PEG Ratio | 7.26 | Debt to equity | 0.02 |
| 52w Index | 27.1 % | Qtr Profit Var | 61.9 % | EPS | 59.3 ₹ | Industry PE | 33.5 |
📊 Financials: Linde India has a market cap of 50,637 Cr. with quarterly PAT rising to 169 Cr. from 105 Cr. (61.9% growth). ROE at 12.3% and ROCE at 16.9% show moderate efficiency. Debt-to-equity ratio of 0.02 indicates an almost debt-free balance sheet. EPS stands at 59.3 ₹, reflecting decent profitability, though margins are not industry-leading.
💹 Valuation: Current P/E of 100 is significantly higher than the industry average of 33.5, suggesting steep overvaluation. P/B ratio is ~12.8 (5,926 ₹ / 463 ₹), which is expensive. PEG ratio of 7.26 indicates growth is priced very aggressively. Intrinsic value appears lower than current market price, making the stock richly valued despite strong fundamentals.
🏭 Business Model & Competitive Advantage: Linde India operates in industrial gases and engineering solutions, serving diverse industries including healthcare, manufacturing, and energy. Its competitive advantage lies in global parent support, technological expertise, and strong client base. Demand for industrial gases provides steady revenue streams, but growth is capital-intensive.
📈 Entry Zone: With RSI at 48.6 (neutral) and support near 5,200–5,400 ₹ (close to 52-week low), accumulation is advisable only at lower levels. Current price at 5,926 ₹ remains expensive relative to valuation metrics.
🕰️ Long-Term Holding Guidance: The company is fundamentally strong with steady demand drivers, but valuations are stretched. Long-term holding is viable only if bought closer to support levels, with patience for earnings growth to catch up with valuation.
Positive
- Strong quarterly PAT growth (61.9%).
- Debt-to-equity ratio at 0.02 shows near debt-free status.
- Global parent support and diversified industry exposure.
- DII holdings increased by 0.20%, showing domestic investor confidence.
Limitation
- High P/E (100) compared to industry average (33.5).
- Expensive P/B ratio (~12.8).
- PEG ratio of 7.26 indicates overpriced growth.
- FII holdings decreased by 0.32%, showing reduced foreign confidence.
Company Negative News
- Valuation multiples remain significantly stretched.
- Weak trading volumes compared to weekly average.
Company Positive News
- Quarterly PAT improved from 105 Cr. to 169 Cr.
- Strong demand outlook in industrial gases and healthcare sectors.
Industry
- Industrial gases sector benefits from steady demand across manufacturing and healthcare.
- Industry P/E at 33.5 highlights Linde India’s overvaluation.
Conclusion
⚖️ Linde India is a fundamentally strong company with global backing and steady demand drivers, but current valuations are steep. Entry is advisable near 5,200–5,400 ₹ for long-term investors. Holding is recommended only if accumulated at lower levels, with patience for earnings growth to align with valuation.
Would you like me to also prepare a comparative HTML table showing Linde India vs. industry averages for quick visualization of valuation gaps?