Ellenbarrie Industrial Gases Limited

Basic Materials — Chemicals · NSE

₹340.25+₹4.75 (+1.42%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

The 60-second version of Ellenbarrie Industrial Gases Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Ellenbarrie Industrial Gases Limited manufactures industrial and medical gases in India.

IndustryChemicals

SectorBasic Materials

Annual revenue₹323 Cr

How does it make money?

Turns over ₹323 Cr a year. Of every ₹100 of sales, about ₹32 reaches shareholders as profit, with ₹51 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 13.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.4%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 36.2% and earnings to grow about 21.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+36.2%

Est. earnings growth+21.7%

Analysts2

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +60% while net margin moved +132% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+60%

Margin effect+132%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

78/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

53/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

39.7x

1.4Y Median

45.0x

17 monthly readings · mean 56.8x · range 31.1x–167.0x

Sector Median

33.8x

median of 3 sector peers

🟢Current valuation is approximately 12% below its 1.4y median of 45.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 18% above the peer median of 33.8x.

vs. its own history

Fair

45.0x median over 17 months · -12%

vs. sector peers

Fair

33.8x median of 3 peers · +18%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

30.5x

PEG

0.73

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 22.2% to 50.6% over 3 years.
Return on capital is rising
ROCE has improved from 8.9% to 13.0%.
Very low debt
Debt/Equity of 0.19x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 78% over 3 years, from ₹103 Cr to ₹184 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 22.2% to 50.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 16.9% CAGR
Latest reported year was 18.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 49%✓ 50.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹26 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 13.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹4,795 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

39.7x

Fair

Fairly valued against the generic band

P/B Ratio

4.91x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹8.56

Profitable

Profitable on a per-share basis

ROE

10.7%

Moderate

Moderate capital efficiency

ROCE

13.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.19x

Low

Conservative leverage

Revenue Growth (YoY)

18.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

74.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹26 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

27.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

31.8%

Good

Healthy core-business profitability

Net Margin

33.8%

Good

Strong bottom-line conversion

Current Ratio

1.60

Comfortable

Healthy short-term liquidity

52W Range Position

55%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

354.5 / 339.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

38.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹202 Cr	₹266 Cr	₹308 Cr	₹323 Cr	+16.9%
EBITDA	₹45 Cr	₹77 Cr	₹142 Cr	₹163 Cr	+53.9%
EBITDA Margin	22.2%	28.9%	46.2%	50.6%	—
PAT (Net Profit)	₹28 Cr	₹45 Cr	₹83 Cr	₹104 Cr	+54.8%
EPS	₹2.15	₹3.46	₹6.36	₹7.54	+51.9%
ROE	7.8%	11.0%	16.9%	10.7%	—
ROCE	8.9%	13.3%	17.8%	13.0%	—
Total Debt	₹103 Cr	₹178 Cr	₹247 Cr	₹184 Cr	+21.2%
Free Cash Flow	-₹56 Cr	-₹43 Cr	-₹65 Cr	-₹26 Cr	—

🟢 Revenue has grown at 16.9% a year over 3 years.

🟢 EBITDA has grown at 53.9% a year over 3 years.

🟢 EBITDA Margin has risen from 22.2% to 50.6% over 3 years (+28.4 pts).

🟢 PAT (Net Profit) has grown at 54.8% a year over 3 years.

🟢 EPS has grown at 51.9% a year over 3 years.

🟢 ROE has risen from 7.8% to 10.7% over 3 years (+2.9 pts).

🟢 ROCE has risen from 8.9% to 13.0% over 3 years (+4.0 pts).

🔴 Total Debt has grown at 21.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,299 Cr

Total Liabilities

₹322 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹133 Cr

Capex

-₹158 Cr

Shareholding (proxy)

Institutional Holding

12.3%

Insider Holding

77.8%

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹435

+27.8% vs CMP

Target Range

₹430 – ₹440

Peer Comparison

Company	P/E	ROE
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

4 mixed2 general

Ellenbarrie targets 20% revenue CAGR with new capacity

scanx.trade, 13 Oct

Ellenbarrie Industrial Gases shares gain 5% on ₹481 crore BHEL contract win

Moneycontrol.com, 29 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Ellenbarrie Industrial Gases shares rise 5% after securing Rs 481 crore order from BHEL

The Economic Times, 29 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Why Is Ellenbarrie Industrial Gases Share Price Falling Key Reasons 2026

Univest, 22 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Impressive Earnings May Not Tell The Whole Story For Ellenbarrie Industrial Gases (NSE:ELLEN)

Simply Wall Street, 29 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Ellenbarrie Industrial Gases BHEL Order: ₹481 crore Win Boosts Market Sentiment

Alice Blue, 29 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑