Linde India Limited

Basic Materials — Specialty Chemicals · NSE

₹6,200.00+₹202.00 (+3.37%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Linde India Limited manufactures and sells industrial and medical gases in India and internationally. It operates through Gases, Related Products and Services; and Project Engineering Division segments.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees252

Annual revenue₹2,530 Cr

How does it make money?

Turns over ₹2,530 Cr a year. Of every ₹100 of sales, about ₹22 reaches shareholders as profit, with ₹39 left at the operating level before interest, tax and depreciation. Each of its 252 employees supports ₹10.04 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin38.8%

Net margin21.7%

Revenue / employee₹10.04 Cr

Who are its competitors?

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

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?Some evidence

ROCE of 16.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE16.3%

ROE12.9%

Peer median ROE22.3%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 15.5% and earnings to grow about 21.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+15.5%

Est. earnings growth+21.9%

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 +1% while net margin moved +24% 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+1%

Margin effect+24%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 0.3% — barely ahead of inflation
✗ Profit CAGR of only 7.8%
✗ Profit fell 2.5% in the latest year

Quality vs. Valuation

Company Quality

59/ 100

Average

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

Valuation

39/ 100

Expensive

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

96.8x

4Y Median

121.8x

44 monthly readings · mean 122.1x · range 76.9x–169.3x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 21% below its 4y median of 121.8x. 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 140% above the peer median of 40.4x.

vs. its own history

Cheap

121.8x median over 44 months · -21%

vs. sector peers

Expensive

40.4x median of 4 peers · +140%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

96.8x

P/B

12.39x

EV/EBITDA

53.8x

PEG

12.49

Dividend Yield

0.06%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 26.7% to 38.8% over 3 years.
Return on capital is rising
ROCE has improved from 14.3% to 16.3%.
Valuation below its historical average
At 96.8x the stock trades 21% below its own median of 121.8x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 248% over 3 years — worth checking what it funded.
Inventory building faster than sales
Inventory is up 54% against revenue growth of 1% — stock may not be moving.
Short-term liquidity is tight
Current ratio of 0.86 — near-term obligations exceed near-term assets.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 248% over 3 years, from ₹23 Cr to ₹79 Cr.
🔴High leverageFinancial
Debt/Equity of 1.85x — earnings must service borrowings before shareholders see anything.
🟡Inventory building faster than salesFinancial
Inventory up 54% against revenue up 1% — stock may not be moving.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.86 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 26.7% to 38.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 21% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
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?

Leverage amplifies any setback
Debt/Equity of 1.85x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 140% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 0.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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

1EBITDA margin holds above 37%✓ 38.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 0.3% CAGR
Latest reported year was 21.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹19 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 16.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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 · 3 neutral · 4 weak

Market Cap

₹52,876 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

96.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

12.39x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹64.06

Profitable

Profitable on a per-share basis

ROE

12.9%

Moderate

Moderate capital efficiency

ROCE

16.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.85x

High

High leverage

Revenue Growth (YoY)

21.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-2.5%

Falling

Profits are shrinking

Dividend Yield

0.06%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹19 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹6,200

P/E (Forward)

72.1x

Improving

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

Operating Margin

19.9%

Good

Healthy core-business profitability

Net Margin

20.6%

Good

Strong bottom-line conversion

Current Ratio

0.86

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.03

Defensive

Steadier than the market

52W Range Position

22%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

6146.0 / 6384.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

52.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,505 Cr	₹2,768 Cr	₹2,485 Cr	₹2,530 Cr	+0.3%
EBITDA	₹669 Cr	₹781 Cr	₹836 Cr	₹982 Cr	+13.7%
EBITDA Margin	26.7%	28.2%	33.6%	38.8%	—
PAT (Net Profit)	₹439 Cr	₹434 Cr	₹455 Cr	₹549 Cr	+7.8%
EPS	₹51.45	₹50.9	₹53.33	₹64.37	+7.8%
ROE	14.4%	12.5%	11.9%	12.9%	—
ROCE	14.3%	15.6%	15.2%	16.3%	—
Total Debt	₹23 Cr	₹21 Cr	₹42 Cr	₹79 Cr	+51.6%
Free Cash Flow	₹326 Cr	-₹131 Cr	-₹747 Cr	₹19 Cr	-61.1%

🟡 Revenue has been broadly flat over 3 years (0.3% a year).

🟢 EBITDA has grown at 13.7% a year over 3 years.

🟢 EBITDA Margin has risen from 26.7% to 38.8% over 3 years (+12.1 pts).

🟢 PAT (Net Profit) has grown at 7.8% a year over 3 years.

🟢 EPS has grown at 7.8% a year over 3 years.

🔴 ROE has fallen from 14.4% to 12.9% over 3 years (-1.6 pts).

🟢 ROCE has risen from 14.3% to 16.3% over 3 years (+2.0 pts).

🔴 Total Debt has grown at 51.6% a year over 3 years.

🔴 Free Cash Flow has shrunk at 61.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,808 Cr

Total Liabilities

₹1,542 Cr

Total Debt

₹79 Cr

Cash & Equivalents

₹110 Cr

Operating Cash Flow

₹786 Cr

Capex

-₹766 Cr

Shareholding (proxy)

Institutional Holding

7.8%

Insider Holding

78.0%

Corporate Actions

Next Earnings

05 Nov 2026

Dividend Rate

₹4

Ex-Dividend Date

06 Aug 2026

Analyst Consensus

Recommendations

0 Buy · 1 Hold · 1 Sell

Target Price (Mean)

₹6,683

+7.8% vs CMP

Target Range

₹6,115 – ₹7,251

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive4 mixed1 general

Linde India (NSEI:LINDEINDIA) Stock Forecast & Analyst Predictions

Simply Wall Street, 12 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Linde India Share Price Rises 2%: Price Action & Valuation

Univest, 06 OctPrice 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.

LINDEINDIA Stock Price and Chart — NSE:LINDEINDIA

TradingView, 05 Feb

Linde India Shares Fall 2.46% to Rs 6,800.50

Moneycontrol.com, 12 AugPrice 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.

Linde India announces record date for ₹12 per share dividend; check details

Upstox, 02 JunCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Linde India Ltd Share Price Extends Momentum, Rises 2.02% to ₹6,937 in Early Trade

HDFC Sky, 19 FebPrice 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.

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong15.8/20

🟡Financial HealthAdequate10/20

🔴GrowthWeak7.4/20

🟢ProfitabilityStrong10.9/15

🔴ValuationDemanding6.7/15

🟡RiskModerate6.3/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 37%38.8%
✗Revenue growth stays above 4% a year0.3% CAGR
✓Free cash flow remains positive₹19 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 13%16.3%