Linde India shares jump 2% on SAIL order
Shares of industrial gas producer Linde India rose 2% on Monday after the company received an order from the Steel Authority of India (SAIL).
On August 25, Linde India was awarded a ‘Letter of Acceptance’ by SAIL for the installation of 1,000 tonnes per day Cryogenic Oxygen Plant on construct, operate and maintain (COM) basis for a period of 20 years from the date of commissioning of the plant and ancillary facilities with provision of renewal for a further period of five years on mutual agreement basis at the SAIL’s plant situated at Rourkela.
Reacting to the order win, shares of Linde India opened at ₹6,050 against its previous closing price of ₹5,915.70 on the National Stock Exchange (NSE). The counter rose to ₹6,139.95 apiece in intraday trade. The gas supplier’s total market cap rose to ₹51,168 crore.
The stock has jumped 12% in the past five days. It has gained 27% over the past month. On a year-to-date basis, the multibagger stock has soared 70%.
Last week, the company bagged an order from Indian Oil Corporation Limited (IOCL) in connection with the job-work contract for setting-up of Air Separation Unit (ASU) on a site licensed by IOCL within its Panipat Refinery Complex for production and supply of Instrument Air, Plant Air and Cryogenic Nitrogen to IOCL Panipat Refinery Expansion Project
“On completion of the construction and the performance test of the aforesaid ASU, Linde India will enter into requisite Agreements with IOCL for operating and maintaining the facility for a period of 20 years from the first delivery date,” the industrial gas producer says, adding that it expects to fund the capital expenditure by its own funds and internal accruals.
Linde India reported 41.9% drop in its June quarter net profit at ₹99.88 crore. The company manufactures and distributes oxygen, hydrogen, nitrogen, argon and other speciality gas mixtures. It also manufactures welding electrodes, rods, fluxes, gas and electric welding equipment along with liquid oxygen explosives.