Ellenbarrie Industrial Gases Ltd Drops 5.80%: Key Factors Behind the Weekly Decline

Feb 14 2026 04:05 PM IST
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Ellenbarrie Industrial Gases Ltd experienced a volatile week from 9 to 13 February 2026, opening strong with an 8.41% surge on Monday but closing the week down 5.80%, underperforming the Sensex which declined 0.54%. The stock’s initial momentum faded amid sustained selling pressure, culminating in a fresh 52-week low on Friday. Key developments including intraday highs, technical shifts, and financial disclosures shaped the stock’s trajectory throughout the week.

Key Events This Week

Feb 9: Intraday high of Rs.273 with 8.41% gain

Feb 10: Minor pullback of 0.56%

Feb 11-13: Consecutive declines, hitting 52-week low of Rs.237.5 on Feb 13

Feb 13: Week closes at Rs.239.75, down 5.80%

Week Open
Rs.254.50
Week Close
Rs.239.75
-5.80%
Week High
Rs.275.90
vs Sensex
-5.26%

Monday, 9 February 2026: Strong Intraday Surge Signals Early Optimism

Ellenbarrie Industrial Gases Ltd opened the week on a robust note, surging 8.41% to close at Rs.275.90 on 9 February 2026. The stock reached an intraday high of Rs.273, marking a 7.05% gain from the previous close and outperforming the Sensex’s 1.04% rise. This strong performance was driven by early buying interest, with the stock opening 2.91% higher and maintaining momentum throughout the session.

Technical indicators supported this short-term bullishness, as the stock traded above its 5-day and 20-day moving averages. However, it remained below longer-term averages, signalling that medium- and long-term trends had yet to align with the recent gains. The Industrial Gases & Fuels sector also advanced 2.76%, but Ellenbarrie’s outperformance highlighted its relative strength within the segment.

Tuesday, 10 February 2026: Minor Correction Amid Consolidation

Following Monday’s rally, the stock experienced a modest pullback on 10 February, declining 0.56% to Rs.274.35. This slight retreat came on lower volume and was in line with a broader market consolidation, as the Sensex gained 0.25%. The stock’s minor correction suggested profit-taking after the sharp gains, but it remained near the week’s high, maintaining a generally positive technical setup.

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Wednesday to Friday, 11-13 February 2026: Sustained Declines and New 52-Week Low

The stock entered a bearish phase from 11 February, declining sharply by 5.81% to Rs.258.40, followed by further drops of 3.37% and 3.98% on 12 and 13 February respectively. This four-day losing streak culminated in a fresh 52-week low of Rs.237.5 on 13 February, with the stock closing the week at Rs.239.75, down 5.80% from the previous Friday’s close of Rs.254.50.

During this period, the Sensex also declined but by a smaller magnitude of 0.54% for the week, highlighting Ellenbarrie’s underperformance. The stock traded below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating sustained bearish momentum and a lack of short- to long-term upward pressure.

Financial disclosures revealed rising interest expenses, up 40.57% to Rs.1.49 crore, which weighed on profitability. Non-operating income accounted for nearly 47% of profit before tax, signalling reliance on non-core earnings. Despite this, profits increased 84% year-on-year, and operating profit grew at an annualised rate of 72.77%, reflecting underlying business strength amid valuation concerns.

Institutional investors marginally increased their stake by 0.68% to 16.26%, suggesting measured confidence despite the stock’s weak price action. The company’s return on equity stood at 9%, with a price-to-book ratio of 3.8, indicating a relatively expensive valuation given the earnings profile.

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Weekly Price Performance: Ellenbarrie Industrial Gases Ltd vs Sensex

Date Stock Price Day Change Sensex Day Change
2026-02-09 Rs.275.90 +8.41% 37,113.23 +1.04%
2026-02-10 Rs.274.35 -0.56% 37,207.34 +0.25%
2026-02-11 Rs.258.40 -5.81% 37,256.72 +0.13%
2026-02-12 Rs.249.70 -3.37% 37,049.40 -0.56%
2026-02-13 Rs.239.75 -3.98% 36,532.48 -1.40%

Key Takeaways

Positive Signals: The strong opening surge on 9 February demonstrated short-term buying interest and technical momentum, with the stock outperforming both its sector and the Sensex. Operating profit growth at an annualised 72.77% and an 84% increase in profits year-on-year indicate underlying business strength. The company’s low Debt to EBITDA ratio of 1.00 times reflects prudent leverage management, and a slight increase in institutional holdings suggests some confidence among professional investors.

Cautionary Signals: Despite short-term gains, the stock’s sustained decline over four consecutive days and breach of a 52-week low highlight significant selling pressure. The stock trades below all major moving averages, signalling bearish momentum. Rising interest expenses and a heavy reliance on non-operating income for nearly half of profit before tax raise concerns about earnings quality. The current Mojo Grade of ‘Sell’ and a Mojo Score of 37.0 reflect a cautious market stance. Valuation metrics such as a price-to-book ratio of 3.8 and a modest 9% ROE suggest the stock may be expensive relative to its earnings and asset base.

Conclusion

Ellenbarrie Industrial Gases Ltd’s week was marked by a sharp initial rally followed by sustained declines, resulting in a 5.80% weekly loss that outpaced the Sensex’s 0.54% drop. The stock’s fresh 52-week low and technical weakness contrast with some positive fundamental indicators such as strong profit growth and manageable debt levels. However, rising interest costs and reliance on non-operating income temper optimism. The downgrade to a ‘Sell’ rating by MarketsMOJO underscores the cautious outlook prevailing among analysts. Investors should closely monitor the stock’s price action relative to key moving averages and sector trends in the coming weeks.

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