This stock has given staggering returns of more than 140 per cent in just one year, do you own it?

Shares of RHI Magnesita India Ltd, are trading at an all-time high of Rs 835, as the stock gained more than 15 per cent on Wednesday’s session.

Shares of RHI Magnesita India Ltd, are trading at an all-time high of Rs 835, as the stock gained more than 15 per cent on Wednesday’s session. The spurt in volume was more than 5 times, indicating fresh buying in the stock from investors. The stock has given stellar returns of 30 per cent in five days, whereas 142 per cent in a year.  

The share price has been increasing due to the expansion plan and positive results reported by the company for September quarter ended. The company has recently bought the Dalmia Bharat Refractories Ltd (DBRL) for a whopping Rs 1,708 crore. Apart from this, the company has also performed well from results perspective, as sales grew by 39 per cent and net profit by 65 per cent. It maintained a ROCE of 36.8 per cent and ROE of 29.3 per cent.   

RHI Magnesita India Ltd is in one of the leading players in special refractory products, which act as a raw material for steel industry. It not only caters to domestic customers but also has some global customers as well. It has set the target to double its production capacity by FY26, majorly due to positive demand for steel sector which will then act as driver for the company. Promoters have increased their stake continuously in the past 3 years, whereas FIIs and DIIs are also increasing the stake.  

Long-term investors must keep this stock on their watchlist.