Fundamental Analysis

RHI MAGNESITA INDIA

Ticker : 534076
BUY: Rs 369.55
Target: Rs 420

RHI Magnesita is a supplier of refractory products, sys- tems, and services. On a consolidated quarterly front, the company recorded an increase of 24.45 per cent in the net sales and operating income, which stood at Rs 432.58 crore for Q2FY22 as compared to the net sales & operat- ing income of Rs 347.58 crore reported for Q2FY22. The operating profit rose by 27.04 per cent to reach Rs 66.4 crore in Q2FY22 from Rs 52.27 crore posted in Q2FY21. The company reported a net profit of Rs 43.10 crore in Q2FY22 as compared to Rs 32.55 crore recorded in Q2FY21, exhibiting a growth of 32.42 per cent. Recently, the company announced that it is planning to invest approximately Rs 450 crore for brownfield expansion of its existing plants across India over the next 2-3 years along with tracing acquisitions to expand its production capacity in the country. Hence, we recommend BUY.