Everest Kanto Cylinder Ltd Company Analysis

Everest Kanto Cylinder is a manufacturer of high-pressure seamless steel gas cylinders used for compressed natural gas (CNG), industrial gases, medical gases and fire-safety applications. Its products serve automotive manufacturers, city gas distribution companies and industrial-gas suppliers. The company has manufacturing operations in India and overseas, including the US and Egypt. Growing CNG adoption, expansion of city gas networks and industrial-gas demand provide long-term opportunities, while its established manufacturing capabilities and regulatory approvals create entry barriers. FY26 consolidated revenue was approximately ₹981.8 crore, compared with ₹960.1 crore in FY25, while EBITDA increased to ₹156.7 crore from ₹108.1 crore and net profit rose to ₹81.2 crore from ₹53.3 crore. However, Q1 FY27 consolidated revenue declined approximately 10.5% YoY to ₹346.3 crore, while net profit fell 41.8% to ₹30 crore. The moderation reflects supply-chain disruptions, higher freight costs and weaker overseas operations. The company is expanding capacity in India, Egypt and the US, which could support future growth but also increases project execution and financing risks. At approximately ₹102–108 in recent market data, Everest Kanto had a market capitalisation of around ₹1,150–1,215 crore, a P/E of roughly 9–10x, P/B of 0.82x, ROE of 10.5% and debt-to-equity of 0.19x on Groww's reported figures. The valuation is relatively modest, and profitability improved in FY26, but the latest quarter signals weaker momentum. Key risks include raw-material and foreign-exchange volatility, working-capital requirements, overseas project ramp-up and additional borrowing for expansion. Overall, the company offers exposure to CNG and industrial-gas infrastructure at a relatively low earnings multiple, but sustained recovery in overseas operations and disciplined management of expansion-related debt will be important to its outlook.