This stock jumped from Rs 189 to Rs 711 in 2 years

Two years back, on 26 October 2020, the stock was trading at Rs 189. Two years later, on 31 October 2022, the stock is trading at Rs 711. 

Two years back, on 26 October 2020, the stock was trading at Rs 189. Two years later, on 31 October 2022, the stock is trading at Rs 711. The stock also touched Rs 738 during this period. This stock belongs to the S&P 500 SmallCap index and has a market capitalization of Rs 11433 crore. The name of the stock is RHI Magnestia India Ltd.  

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, approximately 70% of the company's revenue, comes from the steel sector, 10% from the cement industry, 7% from non-ferrous metals, 7% from glass, and the remaining 6% from the energy, environmental, and chemical industries. 

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

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

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

The stock 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.