Linde India rallies for second day on semiconductor sector opportunity
Linde India, an industrial and medical gas maker, as the company is seen as one of the biggest beneficiaries of the growth in semiconductor manufacturing in India. The stock jumped over 7% on Tuesday, extending the winning run to the second straight day, and is expected to go up by another 14% in the near term driven by the bullish momentum.
The stock, which closed at ₹6,315.70 on the BSE on Tuesday, gained 13.2% in the past two trading sessions.
Linde India has been doing well since the announcement of its third-quarter results, said Hemang Jani, an independent market expert.
«The numbers and the management commentary for expansion of investment to cater to the semiconductor industry has boosted investor confidence in the company,» said Jani. «There is also a sentimental impact as the parent company for Linde India (Linde PLC) was added to the Nasdaq 100 two days ago.»
«We believe Linde India is well positioned to grab this opportunity on the back of its leadership in the Indian gas market, already established a strong relationship with the Tata Group, and end-to-end solutions/supply chain for semiconductor fabs,» said Haitong Securities analyst Chintan Modi, in the note dated March 1, while setting a price target of ₹6,506.
The brokerage said high-purity gases are critical for semiconductor manufacturing because gases can create the chemical reactions needed to shape a semiconductor's electrical properties.
Analysts said technical factors are also pointing to further upside.
«We anticipate the stock to
