Recent Price Movement and Market Context
On the day in question, Ellenbarrie Industrial Gases Ltd’s share price fell by 2.42%, underperforming its sector by 2.01%. The stock touched an intraday low of Rs.272.95, which represents its lowest level in the past 52 weeks. This decline is part of a broader trend, with the stock losing value consecutively over the last five trading sessions, resulting in a cumulative return of -15.47% during this period.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent downward momentum. This contrasts with the broader market, where the Sensex opened lower at 83,358.54 points, down 0.32%, but has since marginally recovered to trade near 83,571.55 points, a decline of 0.07%. The Sensex remains approximately 3.1% below its 52-week high of 86,159.02, indicating a relatively resilient benchmark despite short-term volatility.
Small-cap stocks have shown some strength, with the BSE Small Cap index gaining 0.18% on the day, highlighting a divergence in market segments. However, Ellenbarrie Industrial Gases Ltd, classified within the Other Chemical products sector, has not mirrored this positive trend.
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Valuation and Financial Metrics
Ellenbarrie Industrial Gases Ltd currently holds a Mojo Score of 43.0, with a Mojo Grade of Sell, downgraded from Hold on 22 Dec 2025. The company’s market capitalisation grade stands at 3, reflecting its mid-tier market cap status within the Other Chemical products sector.
Despite the recent price weakness, the stock’s valuation remains relatively elevated. The Price to Book Value ratio is 4.3, which is considered expensive relative to industry norms. The company’s Return on Equity (ROE) is 9%, indicating moderate profitability but not sufficiently high to justify the premium valuation in the current market environment.
Over the past year, Ellenbarrie Industrial Gases Ltd’s stock has delivered a flat return of 0.00%, significantly lagging the Sensex’s 9.23% gain over the same period. This underperformance has contributed to the stock’s current depressed price level.
Profitability and Debt Servicing Capacity
On the positive side, the company has demonstrated strong profit growth and debt servicing ability. Operating profit has grown at an annualised rate of 72.77%, reflecting robust expansion in core earnings. Quarterly figures show the highest Operating Profit to Interest ratio at 31.58 times, underscoring the company’s capacity to comfortably meet interest obligations.
Profit Before Tax (PBT) excluding other income reached a quarterly high of Rs.27.35 crores, while Profit After Tax (PAT) hit Rs.36.72 crores, marking record quarterly earnings. These figures indicate a healthy earnings trajectory despite the stock’s recent price decline.
Additionally, the company maintains a low Debt to EBITDA ratio of 1.00 times, signalling a conservative leverage position and a strong ability to service its debt commitments without undue strain.
Institutional Investor Activity
Institutional investors have increased their stake in Ellenbarrie Industrial Gases Ltd by 3.03% over the previous quarter, now collectively holding 15.58% of the company’s shares. This increased participation by institutional players suggests a level of confidence in the company’s fundamentals, given their typically rigorous analysis and resource capabilities.
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Comparative Performance and Sector Positioning
Within the Other Chemical products sector, Ellenbarrie Industrial Gases Ltd’s recent performance contrasts with some peers that have maintained steadier price levels or shown modest gains. The stock’s 52-week high was Rs.637, indicating a significant retracement of over 57% from that peak to the current low of Rs.272.95.
This wide price range over the past year reflects heightened volatility and market reassessment of the company’s valuation and growth prospects. While the broader market indices have shown resilience, Ellenbarrie’s share price has not kept pace, highlighting sector-specific or company-specific factors influencing investor sentiment.
Summary of Key Metrics
To summarise, Ellenbarrie Industrial Gases Ltd’s stock has reached a new 52-week low of Rs.272.95 after a sustained five-day decline, underperforming both its sector and the broader market. The company’s valuation metrics remain elevated despite flat stock returns over the past year. Profitability indicators and debt servicing ratios remain strong, supported by increasing institutional ownership.
These factors collectively paint a nuanced picture of a company with solid financial fundamentals but facing market headwinds reflected in its share price performance.
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