Dalmia Securities is bearish on Linde India has recommended sell rating on the stock with a target price of Rs 546 in its research report dated November 15, 2018.
Dalmia Securities' research report on Linde India
Linde India Ltd (Linde India), Q3 CY18 result were subdue compare to our estimate. Operational performance and the margins were down by 2.1% q-o-q and 40 bps q-o-q basis, while PAT was up by 98.9% q-o-q due to higher other income, lower depreciation & finance cost.
Outlook
Linde is currently trading at an EV/EBITDA of 18.2x in CY18E and 16.7x CY19E. With the anticipated improvement in financial performance, we assign an EV/EBITDA multiple of 12x (5 years average EV/EBITDA of 16.7) in CY19E and arrive at a target price of INR 546, indicating a downside of 15%.
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