Business Details
National Oxygen Limited is in business of Industrial Gases. There are not too many Companies operating in this niche. It manufactures and supplies Industrial Gases both in Liquid and Gaseous form to Industries and Hospitals
It supplies Oxygen and Nitrogen in Liquid and gaseous forms in different industries and hospitals. It has manufacturing base in Puducherry. Recently it has also installed windmill in Maharastra.
Along with Oxygen and Nitrogen it has also started production of Argon gas as well. Argon gas is used in production of stainless steel. Acetylene gas is yet another product from this Company which is used in welding purpose.
So Company is expanding its foot print in industrial gas sector.
Stock Performance
Above is long term price performance of the Company. As you can see above from year 2010 onward it has traded near 50 price range (if we leave out minor hiccups for some days).
This shows that it has maintained a stable performance over the years. But it has not improved over the performance nor the performance has degraded. Investors have not made money in the counter if we consider inflation in account.
My Opinion
National Oxygen is in niche sector of Industrial Gas production. There are not too many companies operating in this niche. The space is dominated by foreign players.
The Company has tried to venture into different gases for growth. But over the years the growth has remained flat at best. It has to capture new geographies and also come up with new products for next phase of development.
Industrial Gas sector is stable sector and requirement for the gases will remain unless the process is modified to use alternate method. This is why it has seen flat performance. But for investment point of view I would not recommend investing in this Company due to lack of growth potential. Also the space is dominated globally by couple of companies.