Up to 30% upside! Motilal Oswal initiates coverage on this recent debutant; check details
Brokerage firm Motilal Oswal Financial Services has initiated coverage on Ellenbarrie Industrial Gases, a recent debutant, suggesting a 30 per cent upside.
- Sep 9, 2025,
- Updated Sep 9, 2025 1:04 PM IST
Domestic brokerage firm Motilal Oswal Financial Services has initiated coverage on Ellenbarrie Industrial Gases, a recent debutant, suggesting a 30 per cent upside. This recommendation is based on the company's strong growth projections and expanding footprint across India.
Ellenbarrie's business model is robust, benefiting from high customer retention and significant entry barriers due to the long-term nature of industrial gas supply contracts. The company's strategic focus on geographical expansion is notable, as it aims to bolster its presence in northern and western India while enhancing manufacturing capabilities in the east and south, said Motilal Oswal.
Ellenbarrie Industrial Gases is among the oldest industrial gas companies in India, with a history spanning over five decades. It manufactures and supplies a broad portfolio of gases, including oxygen, nitrogen, argon, hydrogen, helium and carbon dioxide.
These gases are integral to essential systems and applications across industries such as steel, pharmaceuticals, healthcare, engineering, defense, energy, and food & beverages, supporting recurring demand and fostering long-term customer relationships.
The industrial gas market in India is poised for growth, with demand expected to rise from $1.3 billion in 2024 to $1.75 billion by 2028, a CAGR of 7.5%. Ellenbarrie plans to increase its production capacity to 4,630 tons per day by FY27, from 3,870 tons per day achieved in FY25, the brokerage noted.
Shares of Ellenbarrie Industrial Gases were listed in July 2025 when the company raised a total of Rs 852.53 crore via IPO by selling its shares for Rs 400 apeice. The stock is currently 35% above its IPO price, and had scaled a highs of Rs 637 on July 14, 2025. However, the stock was listed around 20% premium at the bourses.
Key sectors like steel, pharmaceuticals, and chemicals are pivotal to Ellenbarrie's growth, contributing 37% and 26% to sales in FY25, respectively. The company's sectoral diversification ensures stable and scalable growth, supported by onsite steel plants and strategically located air separation units, it said.
Ellenbarrie's EBITDA posted an impressive CAGR of 81% over FY23-25, with margin improvements seen from 16.4% in FY23 to 35.1% in FY25. The company expects to maintain this trajectory with growth rates of 39%, 42%, and 43% in FY26, FY27, and FY28.
Motilal Oswal's assessment reflects confidence in Ellenbarrie's future performance, supported by expanding market opportunities and the company's strategic initiatives. Investors are encouraged to take advantage of the stock's potential for growth. It has a 'buy' rating on the stock with a target price of Rs 680, suggesting a 30 per cent upside in the stock.
Domestic brokerage firm Motilal Oswal Financial Services has initiated coverage on Ellenbarrie Industrial Gases, a recent debutant, suggesting a 30 per cent upside. This recommendation is based on the company's strong growth projections and expanding footprint across India.
Ellenbarrie's business model is robust, benefiting from high customer retention and significant entry barriers due to the long-term nature of industrial gas supply contracts. The company's strategic focus on geographical expansion is notable, as it aims to bolster its presence in northern and western India while enhancing manufacturing capabilities in the east and south, said Motilal Oswal.
Ellenbarrie Industrial Gases is among the oldest industrial gas companies in India, with a history spanning over five decades. It manufactures and supplies a broad portfolio of gases, including oxygen, nitrogen, argon, hydrogen, helium and carbon dioxide.
These gases are integral to essential systems and applications across industries such as steel, pharmaceuticals, healthcare, engineering, defense, energy, and food & beverages, supporting recurring demand and fostering long-term customer relationships.
The industrial gas market in India is poised for growth, with demand expected to rise from $1.3 billion in 2024 to $1.75 billion by 2028, a CAGR of 7.5%. Ellenbarrie plans to increase its production capacity to 4,630 tons per day by FY27, from 3,870 tons per day achieved in FY25, the brokerage noted.
Shares of Ellenbarrie Industrial Gases were listed in July 2025 when the company raised a total of Rs 852.53 crore via IPO by selling its shares for Rs 400 apeice. The stock is currently 35% above its IPO price, and had scaled a highs of Rs 637 on July 14, 2025. However, the stock was listed around 20% premium at the bourses.
Key sectors like steel, pharmaceuticals, and chemicals are pivotal to Ellenbarrie's growth, contributing 37% and 26% to sales in FY25, respectively. The company's sectoral diversification ensures stable and scalable growth, supported by onsite steel plants and strategically located air separation units, it said.
Ellenbarrie's EBITDA posted an impressive CAGR of 81% over FY23-25, with margin improvements seen from 16.4% in FY23 to 35.1% in FY25. The company expects to maintain this trajectory with growth rates of 39%, 42%, and 43% in FY26, FY27, and FY28.
Motilal Oswal's assessment reflects confidence in Ellenbarrie's future performance, supported by expanding market opportunities and the company's strategic initiatives. Investors are encouraged to take advantage of the stock's potential for growth. It has a 'buy' rating on the stock with a target price of Rs 680, suggesting a 30 per cent upside in the stock.