BUY Signal! Motilal Oswal Boosts Ellenbarrie Industrial Gases Target to ₹610 – Is This Your Next Big Investment?

Author

Akshat Lakshkar | Whalesbook News Team

Detailed Coverage:

Motilal Oswal's latest research report on Ellenbarrie Industrial Gases highlights a mixed performance in the second quarter of fiscal year 2026 (2QFY26). The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw an 8% year-on-year decline, primarily due to a one-time revenue of INR 150 million recognized in 2QFY25 from its Project Engineering division. Looking ahead, significant growth is anticipated in the second half of FY26 (2H FY26) driven by the ramp-up of its Kurnool (360 Tonnes Per Day - TPD) and Tata Steel Metaliks (154 TPD) divisions. Furthermore, the commissioning of the Merchant Plant (East) in 3QFY26 and the East Onsite Plant in 4QFY26 is expected to accelerate this growth momentum. However, the report notes a delay in the commissioning of the North India plant, pushing its operational start from 2QFY27 to 2HFY27 due to project execution challenges. This delay has led Motilal Oswal to reduce its FY27 and FY28 earnings estimates by 13% and 9%, respectively. Impact This news is significant for investors in Ellenbarrie Industrial Gases. The reiterated BUY rating and a target price (TP) of INR 610 (based on 40x September 2027 estimated Earnings Per Share - EPS) suggest positive sentiment from the brokerage firm. While short-term results were affected by one-off factors, the planned capacity expansions are a key catalyst for future revenue and profit growth. The delay in the North India plant is a concern, impacting longer-term earnings forecasts, but the brokerage's overall optimism suggests they believe the company can overcome these hurdles. Rating: 7/10 Difficult terms EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. This is a measure of a company's operating performance. TPD: Tonnes Per Day. A unit measuring capacity or production volume. 3QFY26: Third quarter of the fiscal year 2026. 4QFY26: Fourth quarter of the fiscal year 2026. 2QFY25: Second quarter of the fiscal year 2025. 2H FY26: Second half of the fiscal year 2026. FY27/FY28: Fiscal year 2027 and fiscal year 2028. EPS: Earnings Per Share. A company's net profit divided by the number of outstanding shares. TP: Target Price. The price at which a brokerage firm expects a stock to trade in the future. Commissioning: The process of bringing a new plant or equipment into operation. Ramp-up: The process of increasing production or operations to a desired level. Project execution: The process of planning, managing, and completing a project.