The stock’s steep decline reflected a mix of profit booking, stretched valuations, and fading liquidity. Many traders who chased the rally near its peak were left trapped as the stock hit back-to-back lower circuits, wiping out a large part of their gains.
Stallion India’s meteoric rise made it one of the standout performers among smallcap stocks this year. Unlike highly volatile smallcap counters, there was a method to investors chasing Stallion’s madness. The company is operating in a niche industry that is seeing consistent long-term growth.
Stallion aims to deliver a 30–35% CAGR over the next three years while maintaining healthy and sustainable margins, according to its annual report. Its management has outlined plans to expand into new product categories, align with green chemistry trends, and enter the market for semiconductor-grade gases, a segment that offers high growth and premium margins.
About the company
Founded in 2002 and based in Mumbai, Stallion India Fluorochemicals is engaged in the business of selling refrigerant and industrial gases and related products. Its operations include debulking, blending, and processing gases for industrial clients, along with the sale of pre-filled cans and small cylinders.
The company runs four facilities located in Khalapur and Panvel in Maharashtra, Ghiloth in Rajasthan, and Manesar in Haryana. Each facility is designed for safe storage and processing of gases in controlled environments that adhere to industry safety standards.
The company’s gases find application in a wide range of sectors, including air conditioning and refrigeration, fire safety, semiconductors, automobile manufacturing, pharmaceuticals, and glass production.
By using its expertise in gases and engineering, Stallion provides customised solutions that help clients optimise processes and improve productivity.
Fundamental view
Anand Rathi said the company has built a distinct position in the fluorochemicals market through quality and cost-effective products and enjoys a market share of around 10% in India’s fluorochemicals segment.
Globally, the fluorochemicals and specialty gases market is expected to grow at a compound annual rate of more than 10% from 2024 to 2028, reaching about $16 billion by the end of the period. Growth is being driven by urbanisation, population expansion, and rising industrial demand. Among end-user sectors, the automotive industry is expected to remain the largest consumer of fluorochemicals, particularly for refrigerant gases.
Stallion’s financial performance has also improved steadily. Between FY22 and FY24, the company’s revenue grew from Rs 186 crore to Rs 236 crore, while net profit rose from Rs 9.7 crore to Rs 14.8 crore. In FY25, the company reported a strong jump in its numbers, with total revenue climbing 61% to Rs 379 crore. EBITDA grew 85% year-on-year to Rs 49.7 crore, and profit after tax more than doubled to Rs 32.3 crore. EBITDA margins improved to 13.1% from 11.4% a year earlier, reflecting better operational efficiency and product mix.
With its focus on forward integration and plans for backward integration to secure raw materials, the company believes it is well-positioned to become a leading player in India’s fluorochemicals ecosystem.
Analysts remain cautiously optimistic about the company’s fundamentals. Bajaj Broking noted that Stallion has carved out a niche in a fast-growing market and is poised for sustained earnings growth supported by strong demand for refrigerant gases and expanding industrial applications.
Technical View
On the technical front, Stallion India’s chart shows tentative signs of recovery after the steep fall. The stock recently rebounded from the lower circuit near Rs 223 and moved up about 5% today, suggesting short-term relief after heavy selling.
According to Riyank Arora, Technical Analyst at Mehta Equities, the stock remains weak overall as it trades below its key moving averages and the relative strength index is still in oversold territory. “Immediate support is seen near Rs 190, while resistance is around Rs 260. Sustained trade above Rs 260 could indicate the start of a short-term recovery, while a break below Rs 190 may trigger renewed weakness.”
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)