Oxygen related shares in India- Should you Buy?

Due to the second wave of the coronavirus, the healthcare systems are working at their peaks and there is a countrywide shortage of oxygen cylinders. Investors willing to earn good return on investment normally react to this news and trends which is not wrong but you should have a research and you should analyze the business of the stocks you want to buy. In this article, we are discussing about Oxygen related shares in India.

Sometimes investors take unhealthy decisions dependent on the news like the company Bombay Oxygen Investment Limited whose, stock price jumped 145.75% in the last month and this happened because oxygen is in its name and people started buying whereas the company is not related to oxygen, it is an NBFC. Similarly, when Elon Musk tweeted to use the app Signal, the share price of Signal Advance Inc jumped by 1100% and similarly, this company was also not related to the app Signal.

So here we will tell you about the companies who operate in the medical oxygen and equipment and their share prices have jumped from 20 to 100% in the past 3 months and this list would be in ascending order of market capitalization meaning the company with the highest market cap will be discussed last. We would like to suggest researching the company for long-term returns and not follow any trend which is here today and not tomorrow. Here we will be discussing 4 Oxygen related shares in India-

Oxygen related shares in India: Listed companies dealing in Oxygen

1. Bhagvati Oxygen: Company and share information

Bhagawati Oxygen Limited operates as an industrial gas manufacturing company. The Company manufactures, processes, refines and distributes oxygen, acetylene, ammonia, carbondioxide, and nitrogen in liquid and compressed form. Bhagawati Oxygen serves customers in India.

Its market cap is 4.38 Crore and has given a 36.3% return in the past month and 89.8% returns in the past year and when the stock market crashed in March, the company gave -61.14% in the past 5 years.

The company has been booking loss for the past 2 years and even after increased demand in March, they still booked a loss and their sales have compounded by -23.83% in the past 5 years. The companies share is trading at Rs. 19.88 as at 25-April-2021

2. National Oxygen Limited: Company and share information

National Oxygen Limited (NOL) is a Leading producer and supplier of Industrial gases both in liquid and gaseous forms with well established business relationship with their clients over the last three decades in this business. NOL currently has a capacity of 2500 m3 per hour of Oxygen / Nitrogen gases and 2,00,000 m3 per annum capacity of Dissolved Acetylene gas having manufacturing facilities at Pondicherry and Tamilnadu.

National Oxygen with a market cap of 29.7 Cr and has given a 77% return in the past month and 114% in the past year. The company has given -26.67% in the past 5 years.

This company has recorded a loss in the last 7 FY and recorded loss even in the first 3 quarters of FY21. Their total debt is 39 Cr which is more than their sales. The companies share is trading at Rs. 61.95 as at 25-April-2021

3. Everest Kanto Cylinder Limited: Company and share information

Everest Kanto Cylinder Ltd, established in 1978 is a leading manufacturer of seamless steel gas Cylinders with an annual group turnover exceeding Rs. 550 Crores. From pioneers in development & production of gas cylinders, EKC today is a synonym of safety with well over 2.4 million industrial gas cylinders and 1.1 million CNG cylinders in service. Thanks to a long history in business and adherence to the highest quality standards, EKC enjoys market leadership in the domestic and favorable position in international markets.

Everest Kanto Cylinder with a market cap of 1242 Cr and has given a 53.6% return in the past month and 555% in the past year. The company has given 121% of absolute returns in the past 5 years. The companies share is trading at Rs. 133.90 as at 25-April-2021

4. Linde India Limited: Company and share information

Linde India with a market cap of 15950 Cr implying that it is a mid-cap company. It has given a 4.08% return in the past month and 257% in the past year. The companies share is trading at Rs. 1862 as at 25-April-2021

The company has given 30.8% absolute returns in the past 5 years. Its net profit margin is 10.07% and its sales have compounded by -1.25% in the past 5 years. The company’s debt to equity ratio is 0 meaning they are debt-free.

We have provided above the Oxygen related shares however before investing in these stocks, the Investor should also know that the oxygen demand is not likely to stay in such high-demand conditions forever. These stocks are bound to come down at the average price level reflecting the fundamental. We believe it is not the right time to get into such stocks at this level.

Recommended Read: How To Earn Money In Share Market Daily: Full Guide [2021]

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