HIGHLIGHTS
LAKEWATER SHARED REPORT ON : September 1, 2022 | CMP : ₹3,387.70
CMP AS ON 13TH JUNE, 2024 : ₹ 9,239
Absolute Return for this Period : 77.43%
Linde India Ltd., a subsidiary of BOC Group UK, has been a phenomenal performer over the last 10 years with a massive CAGR of 77.43%. It closed at around ₹370 on 26.05.2014 and is currently at ₹9,239 on 13.06.2024!
The following points delves deeper into why Linde India has given tremendous returns:
- India aiming to achieve the ambitious goal of a $5 trillion economy by 2025 might just have triggered the growth much needed. Robust growth of ~9% is expected in the industrial gases market and will act as a catalyst for the company.
- The massive fleet of infrastructure projects, including 100 Smart City projects, 3 Bulk Drug Parks, 11 Industrial Corridors, over 200 port modernization projects, and more than 100 Food Processing projects will help Linde have better business prospects.
- The anticipated consolidation, enhanced productivity, and expansion within the steel sector, involving key players such as SAIL, Tata Steel, Vedanta, are poised to boost gas demand, thereby opening up promising avenues for advancement of Linde India.
- The government’s budget, focused on growth and infrastructure, includes plans for special zones for electric vehicles, the launch of Vande Bharat trains, and support for over 84,000 startups, all aimed at boosting economic development.
- On 24th January 2022, Linde approved a capex proposal for setting-up a 264 tonnes per day merchant Air Separation Unit. This was done to secure growth in gases business in Northern markets.
- On August 2, 2021, the company acquired HPS Gases Ltd in Vadodara, including its complete packaged gases business and specific distribution assets, for a total cash amount of 27.5 crore. It took effect from November 1, 2021.
- The company’s client base include stalwarts like HPCL, IOCL, BPCL, ONGC, GAIL, MRPL,HMEL, CPCL, Tata, SAIL, JSW.
- Linde has given returns of 72% in the last 3 months of 2024 which showcases investor’s interest in the organization’s potential.
Linde India Ltd’s business requires significant capital investment, leading to a continuous need to secure both debt and equity funding to support its expansion strategies. The company has a healthy dividend payout ratio of 19.30% which keeps investors invested.
Linde is a combination of an investment that has rewarded the investors handsomely and continues to do so.
Sept 1, 2022
