Linde India Shares Up Over 109% in 3.5 Months

By Aditya Raghunath

Investing.com -- Shares of multinational industrial gas company Linde India Ltd (NS: LIND ) have surged between November 13, 2020, when it closed at Rs 857.2 and March 31, 2021, when it closed at Rs 1,799.5. That’s an increase of almost 110%.

The company is India’s largest industrial gas player with a market share of over 50%. Brokerage firm Antique Stock Broking says that the stock has the potential to hit Rs 2,170, an increase of over 20% from its closing price on March 31. It has a ‘buy’ recommendation on the stock.

The reason for this optimism is the merger of Linde Plc (Linde India’s parent company) and Praxair Inc (NYSE: PX ) in 2018. They were the number 2 and 3 industrial gas players in the world. IN 2019, Linde India and Praxair India merged their businesses. Antique says the merger couldn’t have come at a better time. “Post-business integration, Linde India is expected to continue dominating the industry. Linde India is also expecting Rs 3.5 bn of synergy benefit over the next 3-4 years, largely through cost saving and pricing discipline which will potentially improve margins meaningfully,” said the report.

Antique stock broking says Linde India’s revenue can grow at a CAGR (compounded annual growth rate) of 20% over the next three years on the back of demand from the steel, manufacturing, and healthcare sectors.