Ellen.Indl.Gas (ELLEN)

FairStock Score: 41/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Strong growth: sales up 19.60% and profit up 35.89%
• Low leverage: Debt/Equity of 0.13 provides financial cushion
• High promoter holding of 77.16% aligns with minority investors
• Healthy Piotroski F-Score of 7/9 and ROCE of 18.23%
• Latest quarter shows ₹81 Cr revenue with ₹26 Cr net profit, indicating strong margins

Concerns

• Valuation is rich: P/E of 32.38 and P/B of 4.20 leave little margin of safety
• No dividend yield, so return is fully dependent on growth and re-rating
• Share price has fallen sharply from 52-week high of ₹559.80 to ₹275.10
• FairStock Score of 39/100 suggests mixed signals despite good growth

AI Analysis

Let me strip this down to basics. Ellen Industrial Gas operates in a business I appreciate: essential industrial inputs with recurring demand. The numbers show a company in motion. Sales grew 19.60% and profits jumped 35.89% — that is real operating leverage. ROCE of 18.23% is respectable, and a debt-to-equity ratio of just 0.13 tells me the balance sheet is not keeping me awake at night. Promoters own 77.16%, so their interests are aligned with mine. The Piotroski F-Score of 7 out of 9 also suggests financial health is intact. But I am a value investor, not just a growth chaser. At ₹275.10, the stock trades at a P/E of 32.38 and a P/B of 4.20 versus book value of ₹65.53. That is a generous price for a company whose quarterly sales were ₹81 Cr and net profit ₹26 Cr. There is zero dividend yield, so the entire return depends on capital appreciation. The PEG ratio of 1.17 says the price is roughly fair only if the current high growth continues. But notice the stock fell from a 52-week high of ₹559.80 to ₹275.10 — Mr Market has already soured on it once. A FairStock Score of 39/100 is a caution flag, not a green light. I always say: a wonderful business can still be a poor investment if you pay too much. This is a fast grower with a sound balance sheet, but the margin of safety is thin. I would put this on my watchlist and wait for either a lower price or continued proof that profits can compound at this pace. Discipline matters more than excitement.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer