I’ve recently published a post on Inox India on substack (https://pankajg.substack.com). Posting the excerpts here to further the discussion on the stock:
Cryogenics: Cryogenics is the scientific study of materials and their behavior at extremely low temperatures typically below -150°C (123 K). Cryogenic gases have a very low density at room temperature; thus, require a high-pressure vessel to store gasses in large quantities.
In India, there are three players which deal in cryogenic tanks i.e. Inox India, VRV Color, and Cryolor. Inox is the market leader in the segment with over 4x revenue as its nearest competitor VRV Color.
Three Business Segments: * i.e. Industrial Gases, LNG, and Cryo Scientific
MoU with Adani Total Gas
- “preferred partner” status for the delivery of LNG and LCNG equipment and services with Adani Total Gas. A long-term contract where Inox and Adani intend to collaborate on engineering, design, and planning.
- Adani Total Gas is building out this LNG infrastructure, Inox to facilitate fast-track setting up of LNG stations across the country
- In the coming two to three years, they will be expanding heavily, especially in the fueling station, LCNG station, satellite station, and maybe the convergence of their mining and cement trucks to LNG as a fuel.
- Though the numbers are not clear but could become a substantial driver of LNG business. Order booking has already started. Worked with them earlier on three stations, they were having, (helped them in starting those stations because they were having some issues with the station which was delivered by some other companies) and recently received five fueling stations from them (con call Q3FY2024)
Green Hydrogen Optionality
Inox is currently focusing on solutions for hydrogen fueling infrastructure, storage, distribution, etc. As per the company update, they have already:
- Manufactured trailer mounted Hydrogen transport tank, designed jointly with ISRO
- Produced & supplied liquid Hydrogen tank to 2 customers in South Korea
Looking good on chart as well:
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