Shares of a large-cap company climbed nearly 7 percent on the National Stock Exchange (NSE) to reach an intraday high of ₹ 6165.00 apiece after it received a letter of award (LoA) from Indian Oil Corporation Ltd (IOCL) for setting up its Air Separation unit. At 12:25 PM, its shares were trading at ₹ 5953.95 apiece.
According to an exchange filing, Linde India Ltd has been awarded an LoA in connection with a job-work contract for setting up of an Air Separation Unit (ASU) on a site licensed by IOCL with its Panipat Refinery Complex for the production and Supply of instrument air, plant air and cryogenic nitrogen to IOCL Panipat Refinery Expansion project. Moreover, Linde India is required to maintain the facility for a period of 20 years from the date of the first delivery. The company expects to fund the capital expenditure by its own funds/ internal accruals.
Linde India, a subsidiary of BOC Group, UK (which owns a 75 percent stake in the co), is primarily engaged in the manufacture of industrial and medical gases and the construction of cryogenic and non-cryogenic air separation plants.
The company’s share price has increased by 205 percent in the past two years. If an investor had invested ₹ 1 lakh in the company’s shares five years ago, the value of their holdings would have been ₹ 3.05 lakhs today!
With a market capitalization of ₹ 49,173 crores, Linde India is a large-cap company. It has an ideal return on equity of 20.50 percent and an ideal debt-to-equity ratio of 0.01. Its shares were trading at a price-to-earnings ratio (P/E) of 122.91, which is lower than the industry P/E of 17.64, indicating that the stock might be undervalued as compared to its peers.
As per the company’s shareholding pattern, its promoters hold a 75.00 percent stake in it, followed by retail investors with 14.41 percent, mutual funds with 7.28 percent, foreign institutions with 2.85 percent and other domestic institutions with 0.46 percent.
Written by Simran Bafna
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