Linde India shares extend gains to second day after dividend announcement, mixed Q4 results

Linde India (LINDEINDIA) Share Price, Linde India Q4 FY24 Results: Linde India shares continued to rise for a second straight session on Thursday after the industrial gases and engineering company reported its financial results for the March quarter and decladed a dividend of Rs 12. The Linde India stock jumped by as much as Rs 824.8, or 9.8 per cent, to Rs 9,244.6 apiece on BSE, trading in high volumes. 

Linde India (LINDEINDIA) shares settled at Rs 9,135.2 apiece on the bourse, up by Rs 715.4, or 8.5 per cent, for the day. As many as 32,000 Linde India shares changed hands during the session, sharply higher than a daily average of 7,424 shares recorded in the past two weeks, acording to provisional BSE data. 

Linde India Q4 FY24 Results

After market hours on Tuesday, Linde India reported a 6.3 per cent year-on-year increase in its consolidated net profit to Rs 105.4 crore for the fourth and final quarter of FY24.

Its quarterly revenue, however, remained flat at Rs 630 crore compared with the year-ago period, according to a regulatory filing. 

Linde India registered Rs 178.3 crore in earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter ended March 31, 2024, as against Rs 186.1 crore for the corresponidng period a year ago.

Its quarterly margin, a key measure of profitability for businesses, contracted by 124 basis points (bps) on a year-on-year basis to 28.3 per cent, according to the filing. 

Linde India Dividend

Linde India announced a dividend of Rs 12 per equity (including a special dividend of Rs 8) for the financial year 2023-24. 

What's driving the gains in Linde India shares?

"Linde India's strategic emphasis on sustainability and its investments in green technologies stand as key differentiators in an industry increasingly focused on environmental responsibility. These initiatives position the company favourably, not only in terms of aligning with evolving market trends but also in enhancing its long-term sustainability and competitiveness," Sugandha Sachdeva, Founder of SS WealthStreet, told Zeebiz.com. 

"In summary, Linde India's outlook remains optimistic, with indications pointing towards continued upward momentum," Sachdeva adds. 

What should investors do? 

Suggesting a 'buy on dips' strategy on Linde India shares to tap the stock momentum, Sachdeva said: "Investors can capitalise on the stock's potential for further growth, particularly given its favourable technical indicators and strategic positioning within the context of sustainability-driven market dynamics."

She envisages the stock to edge higher and make a switch towards Rs 11,300 apiece "once the near-term hurdle of Rs 9,935 is convincingly breached on a closing basis". 

Linde India shares' parabolic rise since March 2024 (up nearly 2x in three months) has been underpinned by the formation of a double-bottom pattern on a quarterly timeframe, around Rs 5,350, says Sachdeva.

"Despite this substantial rally, market sentiment towards Linde India remains positive, with indications suggesting a continuation of the upward trend. The stock has found robust support at Rs 6,780 levels, previously a resistance level that has now transitioned into support level, further bolstering the positive outlook... Decoding the stock's performance on a weekly timeframe reveals a consistent pattern of higher-highs and higher-lows. This pattern suggests that Linde India is poised to extend its ascent in the foreseeable future," she added. 

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