Review

RHI MAGNESITA INDIA LTD

Ticker : 534076
FV: Rs 1
52-Week H/L: Rs 437.45/212.6

We recommended RHI Magnesita India in volume no. 38, issue no. 09 (dated December 20, 2021) when the scrip was trading at Rs 369.55. RHI Magnesita is a supplier of refractory products, systems, and services. On a consolidated quarterly front, the company recorded a 24.45 per cent jump in the net sales & operating income, which stood at Rs 432.58 crore for Q2FY22 as against Rs 347.58 crore 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. Net profit stood at Rs 43.10 crore in Q2FY22 as compared to Rs 32.55 crore in Q2FY21, exhibiting a growth of 32.42 per cent. The stock has recently hit an all-time high and is seen trading at a relatively higher PE ratio as compared to its peers. Hence, we recommend our investor-readers to BOOK PROFIT at Rs 418.35 on January 11, 2022, with a gain of 13.20 per cent.