Linde India Ltd. - A Case Study by a Newbie!


First a brief introduction. I’m Mahesh , an engineer by profession and a newbie VP. This is my first post on this forum and anywhere stock related for that matter. I come from a family averse to stock market, and my financial knowledge is rudimentary to say the least although i am trying to learn via Coursera (Online Course site) and lot of lurking on VP forum (as a guest) .

Please forgive mistakes in my analysis and correct me so that I may keep learning. Also I’m surprised that this company docent have a thread on this forum (Am i missing something?)

CMP: Rs. 537/-

P/E: 37.69

A Very brief history (since its a well known name)

Linde India is a part of Linde Group who are world’s largest industrial gasses company by market share as well as revenue.

Linde India has acquired Praxair (2018) and BOC (2006) and is the dominant player in the Gases front in India.

Linde India consists of 2 Units

  • Gases and Related Products

The Gases and Related Products segment comprises of pipeline gas supplies (Onsite) to very large industrial customers mainly the primary steel, glass and chemical industries, supply of liquefied gases through Cryogenic tankers (Bulk) to cater to mid-size demands across a wide range of industrial sectors and compressed gas supply in cylinders (Packaged Gas) for meeting smaller demand for gases mainly across fabrication, manufacturing and construction industry. The primary production of gases (oxygen, nitrogen and argon) is mostly achieved through cryogenic distillation of air in Air Separation Units (ASU). Oxygen, Nitrogen and Argon may also be produced in the gaseous state and supplied through pipeline to the Onsite customers, or produced in liquid form and stored in insulated cryogenic tanks for supply to Bulk customers or further processed in the Packaged Gas plants to bottle compressed gas in cylinders. They also provide medical quality gases for pharmaceutical use such as medical oxygen, synthetic air and nitrous oxide.

  • Project Engineering Division

The Project Engineering Division (PED) comprises the business of design, engineering, supply, installation, testing and commissioning of Air Separation plants and related projects on turnkey basis i.e. manufacturing works to fabricate core proprietary equipment such as distillation columns for air separation plants, cryogenic liquid storage tanks, ambient and steam bath vaporisers, process vessels, LINIT plants, small sized cold boxes, containerised micro plants for cylinder filling for in-house use as well as for sale to third party customers. The PED derives support from Linde Engineering, Munich by way of transfer of technology for design and manufacture of plants in India

  • Linde has made its foray it Frozen Food Industry and commissioned a state of the art Food Lab and Technology Centre in Vijayawada, A.P., wrt Instant Quick Freezing (IQF) freezer for shrimp freezing.

"The benefits to the customer are not only in terms of cost savings but are also in terms of enhancement of quality. The Linde’s IQF technology with use of liquid nitrogen also allows the customers to tag their premises as ammonia free.”

  • Linde has signed a new contract to develop an air separation unit (ASU) for Indian Oil (IOCL) refinery at Paradip in Orissa, India.

Offshore Technology | Oil and Gas News and Market Analysis

A Financial Look:


(Source :

Linde is virtually a debt free company and has a strong financial lineage thanks to its parent group.

Concerns :

  • Post Praxair merger, The Competition Commission of India required Linde to divest in its JV Bellary Oxygen Ltd., Hyderabad Cylinder Filling Station (excluding the Nitrous Oxide facility) and the Chennai Cylinder Filling Station.This will have a definite effect on the profitability and its presence in the South. (Bellary Oxygen alone contributes close to 39% of consolidated PAT for Linde)

Bellary Oxygen Ltd was subsequently a slump-sale to lnox Air Products Private Ltd. for a sale consideration of Rs. 54.9cr subject to any adjustments.

( Linde India board approves sale of Belloxy Divestment biz to Inox Air Products )

( Linde to sell JSW plants to comply with Praxair merger )

  • The Covid19 slowdown will have a big impact on the economy and Linde is not exempt from the same. Linde is heavily dependent on Steel, Automotive and refineries for their business. I believe that the economic recovery will be spectacular and with many MNC’s looking to end their dependance on China, will find an investment option in India.

  • Almost all major players in this industry have de-listed (Ellen-Barrie and Inox Air Products). Linde is no different. Linde tried for a de-listing exercise but it failed as they did not accept the ‘Discovered Price’ of Rs.2027/-. (But they may try again since the share price has corrected quite a lot ??)

  • Strictly from a level of a novice, I’m not too sure if the company is very investor friendly (esp minority investors), latest copies of their Corporate Presentation and con-call transcript are not available (last copy on the website was Q2/2017). I was going through the Covid19 Impact con-call of Thermax , where it was very crisply explained by the management regarding the impact due to the pandemic and forward visibility.

  • Form 10K link HERE makes for good reading for further understanding.

Conclusion: As I stated earlier , I am a novice investor and learning from this forum. I am waiting for the stock to correct further to make an entry.

Disc: Not Invested , on my radar



  • Almost all major players in this industry have de-listed (Ellen-Barrie and Inox Air Products). Linde is no different. Linde tried for a de-listing exercise but it failed as they did not accept the ‘Discovered Price’ of Rs.2027/-. (But they may try again since the share price has corrected quite a lot ??)


Here I will add , their delisting failed as biggest minority shareholder is reliance assets new name Nippon asset mgmt, they are not ready to sell shares at lower rates. They value this company very high So not ready to sell below 2027 the delisting will never sucseed.
I personally take it as Positive else one more good Mnc will get delisted and we will not get chance to be partner in growth.

Disc. Invested

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Result of 31st March 2020 after sale of division.

Linde received approx 850 cr from sale of that division . And after sale their is not much impact on sales.
Please other member can help by analysing the results and financial

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Hello Mahesh !

Welcome to valuepickr forum!
Very happy that you have started a thread on Linde India.
Medical industry is also one of other sector where pure oxygen is used.

Normally these companies/hospitals/resellers install liquid pressurized tanks on site with capacities like 1KL or 2KL. (liquid Oxygen for hospitals) They have fixed contracts in place for many such small customers where a minimum consumption limit is defined.
For the bigger customers they install Air seperation units on site or close by to reduce the transportation cost’s . Whether or not these contracts have any minimum billing clause also would be interesting to find out…


Thanks for the details. I am not getting the correct figure from the proceeds for BellOxy, can you please confirm as to where you got that figure.
Apart from BellOxy sale, Chennai & Hyderabad Cylinder Stations have also been sold, which, I read that was accompanied by substansial free-hold land .

Yes Dhaval, They also have released proprietary products like, LIV cylinders for medical oxygen and ENTONOX cylinders for Nitrous Oxide but I could find only minimal information on that.

Maximum revenue comes from Steel, Automotive and Oil Industry the effect of the Lockdown will be evident Q1 onward.
I am looking forward to the success of the Instant Quick Freezing plant which was setup in AP in the current AR. This looks like a promising venture to be in now.


@Manoos , please check bse or nse site for exect amount. . In results as well as in announcement they have given sale proceeds and shown as exceptional income.

Please check notes ii in results.

Very intersting shareholding pattern.75 % promotors , 25 % public, out of that 15 % institute. 10 % retail. reliance capital hold 10 % so for buy back they are kingmaker and they decide offer to succeed or fail.

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Sorry for the late reply, as per the uploaded result, the assets still haven’t been hived off?

The latest case of Vedanta shows that a promoter really interested in delisting will do it by hook or crook in our markets. CG really takes a back seat here. Hope it’s not the same case with Linde.

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Asset already hived off and this results is after that.belloxy disinvestment is pending… To complete delist their is new delisting rules where one condition is it should get min 20% shares and they should hold 95% And it’s by reverse book built. Check sebi for e exect rules.
In last buyback offer all max offer including reliance capital ( their offer is very imp for successful delisting as they hold major chunk) was around 2000. So linde cancelled delisting.


LINDE near debt free now as debt reduced from sale of division

The Belloxy divestment is delayed as they couldn’t pay in the right time. Linde has sought more time from CCI

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For anybody interested in detailed research this link provides valuable inputs

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Appears to be old report

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Request to share the recently held Linde AGM notes.

Reading the older annual reports for the company. Some notes:

Information from Annual reports (2019, 2020):

  • Linde India Limited, formerly BOC India Limited, is a member of Linde Plc. and one of the leading industrial gases company in India.

  • Linde India has the largest sales and distribution network in the country giving it a wide geographic reach and placing them close to the customers in any part of India.

  • Has more than 20 operating sites in India

  • Primarily produces Oxygen, Nitrogen and argon

  • Company has maintained a really good CSR and has necessary public relations.

  • Through the ITM Linde Electrolysis (ILE) joint venture, Linde is one of the world’s leading suppliers of PEM electrolyzer technologies (proton-exchange membranes), which means that its customers can rely on end-to-end, integrated green H2 solutions.

  • First company in the segment to take orders online

  • Company has two major segments - Gases and related products and Project engineering.

  • Gases and related products:

    • Range of customers:
      • Healthcare - Oxygen
      • Application technologies
      • Packaged gas
      • Looking to venture into
        • Steel
        • Fertiliser
    • Threats faced by the company:
      • Slow down of Indian economy
      • Downtrend in Automotive sector
      • Increase in costs
  • Project engineering:

    • “The Project Engineering Division (PED) comprises the business of design, engineering, supply, installation, testing and commissioning of Air Separation plants and related projects on turnkey basis” - Infrastructure development for delivering and holding gas.
    • The Division’s order intake during the year 2020 stood at Rs. 6,640 million
    • a large value order from HPCL Rajasthan Refinery Ltd. for setting up a “Compressed air & N2 plant package” at their green field refinery site on turnkey basis at Barmer, Rajasthan
    • Also received orders from Praxair India and IOCL
    • As on 31 December 2019, the Project Engineering Division’s third-party order book stood at over Rs.6,300 million.
    • As on 31 December 2020, the order book position of PED for third party projects stood more than Rs.11,000 million.
  • Outsourcing of gases requirement under a ‘Build Own Operate’ (BOO) type of supply scheme opportunities mainly in steel and refinery sectors.

  • At the beginning of the year 2020, the Company had one joint venture in the gases business viz. Bellary Oxygen Company Private Ltd., which operates an 855 tpd Air Separation Unit at Bellary, Karnataka for supply of gases under a long-term gas supply agreement to JSW Steel Ltd.’s works at Bellary.

  • Opportunities

    • The Government of India’s commitment to boost economic growth by investing in infrastructure development, as per the recent budget estimates is a a major opportunity
    • The Government has unveiled multimillion-dollar National Infrastructure Pipeline (NIP), with projects spread across 18 States over the next five years up to 2025
    • The sectors such as energy (24%), roads (19%), urban development (16%) and railways (13%) will account for around 70% of the projected capex. It is estimated that to achieve a USD 5 trillion economy by fiscal year 2025
    • The demand for steel would further the demand for gas at concerned areas of production.
    • Directionally moving towards a scrappage policy on Passenger Vehicles older than 20 years and Commercial Vehicles over 15 years is also expected to boost replacement demand in the automobile sector.
    • Healthcare sector, which has been India’s fastest growing businesses, and which offers high employment opportunities looks very promising.This is expected to give a fillip to the growth of the medical gases and pharma sector in the country, both of which augur well for the gases industry.

What is linde’ s role in the recent green hydrogwn plants announced by reliance and iocl?

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LINDE’s name being heard everywhere now.

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