Linde India in Focus After Long-Term Deal with Asian Paints for Industrial Gas Supply
Linde India Ltd, a leading player in the industrial gas sector, is making headlines after announcing a long-term agreement with Asian Paints (Polymers) Private Limited, a subsidiary of Asian Paints Limited. This deal, which involves the supply of industrial gases via pipeline, is expected to enhance Linde India’s footprint in the Dahej region, where Asian Paints is setting up a state-of-the-art manufacturing facility.
Stock Performance and Market Trends
On March 14, 2025, Linde India’s shares remained relatively flat. The stock, which opened at ₹6,150 per share, was trading at ₹6,093 per share by 2:30 PM, marking a marginal 0.3% decline from its previous close of ₹6,111.15.
Despite the short-term dip, Linde India has delivered outstanding long-term returns. Investors have seen a 112.6% gain over the last three years and a staggering 1,130% return in the past five years, making it one of the top-performing stocks in the industrial gas sector.
The Big Deal: the company7 za2 ’s Partnership with Asian Paints
Linde India has entered into a long-term supply agreement with Asian Paints (Polymers) Private Limited to provide industrial gases to its upcoming manufacturing facility in Dahej, Gujarat. The facility will focus on producing Vinyl Acetate Monomer (VAM) and Vinyl Acetate Ethylene Emulsion (VAE)—both crucial chemicals in the paint and adhesive industries.
To meet the growing demand, Linde India plans to set up its third Air Separation Unit (ASU) at the Dahej location. The plant will have a 245 TPD (tons per day) liquid output capacity and 100 TPD of gaseous oxygen (GOX), further strengthening Linde’s gas supply infrastructure in the region.
Financial Performance and Key Metrics
Despite the exciting growth prospects, Linde India reported a decline in revenue and profit in the latest quarter:
| Financial Metric | Q3FY24 | Q3FY25 | % Change |
|---|---|---|---|
| Revenue from Operations | ₹706 Cr | ₹606 Cr | -14.2% |
| Net Profit | ₹120 Cr | ₹116 Cr | -3.3% |
Though revenues have dipped, the company remains financially strong, with impressive returns and minimal debt.
Business Segments: Linde India’s Key Operations
Linde India operates in two major segments:
- Gases and Related Products – Supplies pipeline gases (onsite) to steel, glass, and chemical industries. Provides liquefied (bulk) and compressed (packaged) gases for sectors such as fabrication, manufacturing, and construction.
- Project Engineering Division (PED) – Designs, installs, and commissions air separation units (ASUs), nitrogen plants, PSA plants, and gas distribution systems. The company also manufactures cryogenic vessels for its operations and external sales.
The company’s Market Standing and Ratios
| Market Data | Value |
|---|---|
| Market Cap | ₹51,347 Cr |
| Current Price | ₹6,021 |
| 52-Week High/Low | ₹9,935 / ₹5,380 |
| Stock P/E | 118 |
| Book Value | ₹416 |
| Dividend Yield | 0.07% |
| ROCE (Return on Capital Employed) | 17.4% |
| ROE (Return on Equity) | 12.9% |
| Debt to Equity | 0.01 |
| Industry P/E | 28.4 |
| EPS (Earnings Per Share) | ₹50.9 |
| Price to Sales Ratio | 20.4 |
| RSI (Relative Strength Index) | 49.2 |
| Free Cash Flow (3 Years) | ₹606 Cr |
| Free Cash Flow (5 Years) | ₹1,129 Cr |
These figures indicate that Linde India maintains strong financial health with high returns on capital and equity, while keeping debt at extremely low levels.
Future Outlook: Growth and Expansion
- The Dahej ASU expansion will help meet the rising demand for industrial gases in Western India.
- Linde India’s pipeline cluster strategy in Dahej can improve operational efficiency and reduce logistics costs.
- The partnership with Asian Paints could pave the way for further collaborations in the chemical and manufacturing sectors.
- With increasing focus on clean energy solutions, Linde India may expand its footprint in hydrogen and other alternative gas markets.
Frequently Asked Questions (FAQs)
1. Why is the company in the news?
Linde India has signed a long-term contract with Asian Paints (Polymers) Private Limited to supply industrial gases for its new manufacturing plant in Dahej, Gujarat.
2. How has the company’s stock performed recently?
The stock opened at ₹6,150 per share on March 14, 2025, and was trading at ₹6,093 per share by 2:30 PM. However, over the last five years, it has delivered a remarkable 1,130% return.
3. What is the significance of the Dahej Air Separation Unit (ASU)?
The new ASU at Dahej will have a capacity of 245 TPD liquid output and 100 TPD gaseous oxygen (GOX), helping Linde India expand its industrial gas supply infrastructure.
4. What are Linde India’s main business segments?
Linde India operates in two key segments:
- Gases & Related Products (supplying pipeline, liquefied, and compressed gases)
- Project Engineering Division (PED) (designing and commissioning gas plants)
5. How does Linde India compare to industry standards?
With an ROCE of 17.4% and ROE of 12.9%, Linde India outperforms many peers in financial efficiency. However, its Stock P/E (118) is much higher than the Industry P/E (28.4), indicating a premium valuation.
6. What are the future growth prospects for Linde India?
The Dahej expansion, pipeline cluster strategy, and increasing demand for industrial gases position Linde India for strong future growth. The company may also explore clean energy and hydrogen solutions in the coming years.
Final Thoughts
Linde India’s partnership with Asian Paints marks a major milestone in its growth trajectory. While recent financial results showed a dip in revenue, the company remains fundamentally strong with high ROCE, minimal debt, and long-term expansion plans. Investors looking for exposure to industrial gases and engineering solutions may find Linde India a compelling opportunity in the long run.
For more market insights, follow our news.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like MoneyControl, ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.