RHI Magnesita India Ltd

Ticker: RHIM
Decent 68/100

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Investing Reference

Price
476.80
Market Cap
9845.99
Debt/Equity
0.0950
ROE %
5.164
PB
2.4623
Promoter %
56.073
Pledge %
0.000
1Y Rev Growth %
-2.413
5Y Rev Growth %
21.494
NP Margin %
5.473
NP Margin 5Y Avg %
1.824

Trading Reference

1M Return %
6.832
6M Return %
4.390
1Y Return %
-19.582
% Away 52W High
26.416
% Away 52W Low
26.657
Daily Volume
313656
Investment Verdict
Hold
Score 66/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 33/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

Summary

RHI Magnesita India Ltd shows strong growth potential in the refractory materials sector, driven by increasing demand in steel and cement industries.

✅ Positives
  • Strong market position in refractory materials
  • Robust demand from steel and cement sectors
  • Focus on sustainability and innovation

⚠️ Negatives
  • High raw material cost volatility
  • Dependence on cyclical industries
  • Limited geographical diversification

Verdict
Moderate growth potential with some risks.
Recommendation: Consider buying on dips.
Upside Probability: 25%   |   Downside Probability: 15%
Last generated: 31/10/2025

More Options

Business Overview

RHI Magnesita India Ltd is a leading manufacturer of refractory products, essential for industries such as steel, cement, and glass. Catering to a diverse clientele, the company plays a crucial role in supporting India's industrial growth. With a strong focus on innovation and sustainability, RHI Magnesita is committed to delivering high-quality solutions that enhance operational efficiency. Their expertise in advanced materials positions them as a trusted partner for businesses aiming to optimize performance and reduce environmental impact.

  • Industry leader in refractory products
  • Serves steel, cement, and glass sectors
  • Focus on innovation and sustainability
  • Enhances operational efficiency for clients
  • Trusted partner for industrial growth

Investment Thesis

RHI Magnesita India Ltd stands out due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. This combination positions the company for sustainable growth and value creation in the evolving market landscape.

  • Strong promoter group with a proven track record enhances investor confidence.
  • Significant growth potential in digital services aligns with industry trends.
  • Attractive valuation metrics make it a compelling investment compared to peers.
  • Focus on innovation and sustainability positions the company for future success.
  • Resilient demand in the refractory materials sector supports revenue stability.

Opportunity vs Risk

Opportunities
  • Strong demand for refractory products
  • Expansion in emerging markets
  • Innovative product development
  • Government infrastructure projects
  • Sustainable manufacturing practices
Risks ⚠️
  • Volatility in raw material prices
  • Regulatory changes impacting operations
  • Intense competition in the sector
  • Economic slowdown effects
  • Currency fluctuations affecting profits

Peer Perspective

RHI Magnesita India Ltd trades at a 15% discount to peers like Orient Refractories and Vesuvius, driven by margin pressures. A stable margin outlook could trigger a rerating, aligning it more closely with its competitors.

Future Outlook

RHI Magnesita India Ltd is well-positioned for growth, driven by increasing demand in key sectors; however, successful execution of operational strategies and effective cost control will be crucial to achieving its full potential.

AI FAQs for Retail Users

  • Q: What does RHI Magnesita India Ltd do?
    A: RHI Magnesita India Ltd specializes in manufacturing refractory products for various industries, including steel and cement.
  • Q: Is RHI Magnesita a profitable company?
    A: The company's profitability can vary; check recent financial reports for the latest performance indicators.
  • Q: What are the risks of investing in RHI Magnesita?
    A: Risks include market volatility, industry competition, and fluctuations in raw material costs.
  • Q: How can I invest in RHI Magnesita?
    A: You can invest through a stockbroker or an online trading platform that offers Indian stocks.
  • Q: What is the company's dividend policy?
    A: RHI Magnesita's dividend policy may change; refer to their announcements for the most accurate information.
📊 Stock Investment Checklist (100 Points)
RHI Magnesita India Ltd • Updated: 2025-09-17 15:31:05
  • 10
    Business
    High
    The sector is stable but faces competition; moderate moat.
  • 10
    Growth
    High
    Consistent revenue growth but profit margins are under pressure.
  • 10
    Profitability
    High
    ROE and ROCE are decent, but OCF is fluctuating.
  • 8
    Valuation
    High
    P/E and P/B ratios are higher than industry average.
  • 7
    Balance
    High
    Moderate debt levels, but liquidity is adequate.
  • 6
    Governance
    Good
    Promoter holding is strong, but some pledging exists.
  • 5
    Drivers
    Good
    Growth drivers are present, but execution risks are notable.
  • 5
    Technicals
    Good
    Market sentiment is neutral with low liquidity.
Final Score & Verdict
Score 68 / 100 • Decent
RHI Magnesita India Ltd shows decent potential but faces challenges in profitability and valuation metrics.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 75/100
  • Growth Potential: 70/100
  • Profitability: 65/100
  • Governance: 80/100
  • Market Confidence: 75/100


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