India's growing prominence as a pharmaceutical manufacturing hub, supported by cost competitiveness, supply-chain diversification from China and government initiatives such as PLI schemes and Ayushman Bharat, is expected to drive industrial gas demand, creating growth opportunities for Ellenbarrie, believes Motilal Oswal, and expect Ellenbarrie to clock a compound annual growth rate of 40%/36%/26% in revenue/Ebitda/ PAT during FY26-29, and values the company based on 30 times Sep'28 earnings per share.
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Motilal Oswal Report
Motilal Oswal believes Ellenbarrie Industrial Gases Ltd. is well positioned to benefit from the structural growth in India's domestic solar cell manufacturing ecosystem and the expansion of the steel and pharmaceutical industries.
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The brokerage reiterates its Buy rating with a target price of Rs 420, implying a potential upside of 29%, from the reprots CMP of Rs 325 and expect Ellenbarrie to clock a compound annual growth rate of 40%/36%/26% in revenue/Ebitda/ PAT during FY26-29, and values the company based on 30 times Sep'28 earnings per share.
Ellenbarrie operates through a diversified portfolio of gases, supported by long-term contracts that ensure stable demand and customer retention. Its balanced business model across bulk, packaged, and onsite supplies contributed 68%, 15%, and 16% of revenue in FY26, respectively.
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Ellenbarrie is expected to sustain its growth momentum, aided by the mid- to long term triggers such as-
- capacity expansion across India, especially In North and Central India to capture the opportunity in these markets,
- development of domestic solar cell manufacturing ecosystem and capturing opportunities in solar cell industry,
- stable demand from well-diversified core industries, and
- ramp-up of newly commercialized plants.
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