This refractory stock is trending on October 18

5paisa Research Team 18th October 2022 - 06:14 pm

The stock surged 7% on the day.

On October 18, the market closed in green. The S&P BSE Sensex closed at 58960.6, up 0.94%, while NIFTY50 closed at 17,486.95, up 1%. Regarding sectoral performance, Financials are outperforming, while Metals and Realty are among the top losers. Talking stock-specific action, Rhi Magnesita India Ltd is among the top gainers.

The shares of Rhi Magnesita India Ltd surged 7.26% and closed at Rs 719.05. The stock opened at Rs 681.9 and made an intraday high and low of Rs 728 and Rs 677.85, respectively.

RHI Magnestia India Ltd is in the business of manufacturing and marketing special refractory products, systems, and services to the steel industry in India and International markets. The company can offer full heat management solutions to its customers.

According to FY22, about 70% of the company’s revenue comes from the Steel industry, 10% from the Cement industry, 7% from Non‐ferrous metals, 7% from Glass, and the rest 6% from Energy, Environmental, and Chemicals industry.

Rhi Magnesita India has a 15% market share in the global refractory market. It has a 25% market share in India, 65% in South America, 50% in Africa, 40% in North America, 40% in the Middle East, 20% in Europe, and 10% in East Asia.

Q1FY23 revenue stood at Rs 602 crore, exhibiting a 40% YoY improvement. The net profit increased by 64.76% and came at Rs 82.35 crore. The net profit improved from 11.64% in Q1FY22 to 13.68% in Q1FY23.

About the shareholding pattern, about 70.19% of the stake is owned by the promoters, 2.2% by FIIs, 8.29% by DIIs, and the rest 19.32% by the non-institutional investors.

The company has a market capitalization of Rs 11576 crore and is trading at a PE multiple of 38.4x. The scrip has a 52-week high and low of Rs 728 and Rs 322.7, respectively.

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5paisa Research Team

Disclaimer: Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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