Shares of this leading industrial oxygen provider jumped over 6 percent to Rs.7,641.6 per share following the announcement of a plant sale agreement with Tata Steel.
Share Price Movement
In Thursday’s trading session, Linde India Limited’s share price surged 6.09 percent to an intra-day high of Rs.7,641.6 per share from its previous close of Rs.7,202.6 apiece. The price has since retreated and is currently trading at Rs.7,488.3 per share. Over the past five years, the stock has delivered impressive multi-bagger returns of 1,400 percent.
What happened
On September 4, Linde India Ltd, a prominent provider of industrial and medical oxygen, announced the signing of a significant plant sale agreement with Tata Steel Ltd. This agreement entails Linde India acquiring industrial gas supply assets, specifically two 1800 TPD (Tons Per Day) air separation units (ASUs).
These units are part of Tata Steel’s Kalinganagar phase two expansion project, which aims to enhance the steel production capacity at the site.
Capacity Enhancement
Linde India operates over 100 air separation units (ASUs), including the largest at Jamnagar with a capacity of 5 x 5,250 TPD. A new 1,000 TPD ASU is under construction at the Rourkela steel plant and is expected to be operational by 2026.
The company is also expanding with projects like the Instant Quick Freezing plant in Andhra Pradesh, aimed at enhancing its food processing services.
Financial Performance
In its latest financial update, the company reported a net profit of Rs.114 crore for Q1 FY25, compared to Rs.100 crore in the same quarter last year, reflecting a 14 percent increase. However, the net sales for the quarter were Rs.653 crore, a 9.5 percent decrease from Rs.721 crore in Q1 FY24.
Shareholding Pattern
As per the June 2024 shareholding pattern, the promoters of Linde India Limited hold a 75 percent stake, while Foreign Institutional Investors hold a 3.03 percent stake. Domestic Institutional Investors and Retail investors hold a stake of 6.84 percent and 15.13 percent, respectively in the company.
Company Overview
Linde India Ltd. is a leading industrial gas company in India, operating over 33 production facilities and the country’s largest air separation plant. As a subsidiary of Linde Plc, it supplies a wide range of gases and related services across various sectors.
Written by – Siddesh S Raskar
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