Ellenbarrie Industrial Gases Up 9% Post Strong IPO Debut! Motilal Oswal Sees Fresh Highs With 31% Target Price

Elenbarrie Industrial Gases Limited shares have rallied around 9% after listing on the BSE and NSE in July this year. Being one of the oldest gas companies in India, its diversified portfolio of gases, long-term contracts, and a balanced model will help in long-term growth, according to brokerage Motilal Oswal. The brokerage sees a 31% upside in the company stock valuation.

Elenbarrie Industrial Gases' share price was trading 2% higher at Rs 549 per share on BSE with a market capitalisation of Rs 7,737.36 on Tuesday at 11:31 am. Its initial public offering (IPO) listing on BSE was done at Rs 492 per share on BSE with a premium of 23% in July this year.

Ellenbarrie Industrial Gases Outlook

The brokerage sees strong potential in the BSE stock dealing in the gases and energy segment. Multiple factors, like strong customer retention, a high entry barrier model, and geographical expansion, could boost the company's growth prospects, highlighted Motilal Oswal in its report on Tuesday.

"India's industrial gas demand is projected to reach ~USD1.75b by CY28 from USD1.3b in CY24 at a CAGR of 7.5%, providing a favorable backdrop for ELLEN's expansion strategy. The company has scaled its capacity 4.5x over FY23-25 to 3,870 tons per day (tpd), led by 18x growth in onsite capacity from 176tpd in FY23 to 3,172tpd in FY25. ELLEN aims to increase its capacity to 4,630tpd by FY27," noted Motilal Oswal in its report.

Ellenbarrie Industrial Gases Share Price Recommendation

The brokerage has given a 'Buy' rating for the stock. It has also indicated a 31% upside in its valuation in long-term.

"We expect a CAGR of 39%/49%/52% in revenue/EBITDA/PAT over FY25-28. ELLEN is currently trading at 49.8x/30.6x/25x FY26E/FY27E/FY28E PE. We initiate coverage on ELLEN with a BUY rating and a TP of INR680, based on ~40x FY27E EPS," stated Motilal Oswal in its report.

Key Risks To Watch Out For

The company's strong point can also emerge as a concern for investors. Factors like key customer relationships, prolonged disruption in facilities, slower demand in key sectors like steel, etc can pose a downside risk for Ellenbarrie Industrial Gases, according to the brokerage.

Ellenbarrie Industrial Gases Share Price Trend

The stock's valuation has increased by around 4.9% in one month and has surged around 6.33% in last one week. The stock touched its 52-week low mark of Rs 485.65 per share on BSE and a 52-week high mark of Rs 637 per share on BSE on 14 July 2025.

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