Ellenbarrie Industrial Gases (ELLEN IN) – Initiating Coverage – The Blessings of Aeolus – BUY
Published on 13 Nov 2026
We initiate coverage on ELLEN with ‘BUY’ rating and TP of INR382, based on 25x Sep’28E EPS. After growth stagnating during FY21-24 due to restructuring, ELLEN has nearly tripled its capacity during FY24-26. Further, it has plans to expand capacity by ~50% during FY26-28E. ELLEN’s growth outlook is further supported by rising MSME demand, lower energy costs and ongoing capacity expansion. The INR4.8bn BHEL contract further strengthens revenue visibility, although relatively lower project engineering margins may moderate overall profitability. At CMP, the stock trades at 17x FY29E EPS and 14x FY29E EV/EBITDA. We expect revenue/EBITDA/PAT CAGR of 41%/41%/32% over FY26–FY29E, driven by policy initiatives supporting industrial gas demand and planned capacity additions. We initiate coverage with a BUY rating.
