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RIL Company Analysis – Linde Bangladesh Limited
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RIL Company Analysis – Linde Bangladesh Limited

Linde Bangladesh Limited - Equity Research Report

Linde Bangladesh Limited is a member of the Linde Group that has been present in Bangladesh for over 50 years which continues expansion in operations and business. As a pioneer multinational company in the gases business, Linde Bangladesh has 3 major locations installations at Tejgaon, Rupganj and Shitalpur.

Linde Bangladesh Limited largely distributes industrial and medical gases to Food & Beverage based industry, Health sector, Shipbuilding industry and Construction Sector. The company mainly manufacturing and medical gases, welding products and equipment. The company also earns rental from cylinders used by customers and from Vaccum Insulated Evaporators (VIE) installed at customer’s premises. The company has three strategic divisions. They are: a) Bulk gases b) Package Gases & Products c) Healthcare.

Linde Bangladesh Limited has delivered an excellent revenue and profits in 2021 compared to 2020.

  • Profit before taxation rose 3.4% to BDT 1,494 million
  • Income increased 14.2% to BDT 1,226 million
  • Earning per share climbed 14.2 % to BDT 80.55
LindeBD Revenue Composition

Linde Bangladesh Limited also plans to revamp the Shitalpur plant. It is hoped that the revamping will result in yield improvement and higher efficiency. The company is in progress to build up storage facilities at Benapole would act as a buffer for Oxygen and other gases and improve reliability and distribution support.

Price Volume Movement of LindeBD

The market price per share of LINDEBD is BDT1,397.70 which implies the share price is undervalued compared to it’s intrinsic value BDT 1,842. If the economy continues to grow, the industries are likely to expand more which will trigger more business potential for the company. So, the investors may get a return of 31% from investing this share at the current price level.

Disclaimer

This document is prepared by the research team of Royal Capital Limited. This is based on the publicly provided information by SUMITPOWER Limited and our research. We do not rely on any insider information.

This report does not influence the investors to buy and sell the equity.

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  • October 27, 2022

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