Check Before You Invest : RHI Magnesita India Ltd

Q: Which industry/sub-sector does RHI Magnesita India Ltd belong to?

RHI Magnesita India Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Refractories segment.

Q: Is RHI Magnesita India Ltd a good quality company?

RHI Magnesita India Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is RHI Magnesita India Ltd undervalued or overvalued?

RHI Magnesita India Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 43.87, Historic Median: 33.88. Price to Book, Current: 2.03, Historic Median: 3.58. Price to Sales, Current: 2.55, Historic Median: 4.33. EV to EBITDA, Current: 24.27, Historic Median: 26.81

Q: Is RHI Magnesita India Ltd a good buy now?

RHI Magnesita India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of RHI Magnesita India Ltd?

RHI Magnesita India Ltd revenue growth is 2.4% for FY-2025, which is below its 5-year CAGR of 15.88%, indicating slower growth.

Q: Gross Profit margin of RHI Magnesita India Ltd?

RHI Magnesita India Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.1% for FY-2025, which is below its 5-year median of 14.6%, indicating decreasing margins.

Q: Operating Profit Margin of RHI Magnesita India Ltd?

RHI Magnesita India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.69% for FY-2025, which is below its 5-year median of 15.32% indicating decreasing margins.

Q: Net Profit Margin of RHI Magnesita India Ltd?

RHI Magnesita India Ltd Net Profit Margin is 7.71% for FY-2025, is in line with its 5-year median of 7.71%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 13.1, Historic Median: 14.6. Operating Profit Margin (%), Current: 13.69, Historic Median: 15.32. Net Profit Margin (%), Current: 7.71, Historic Median: 7.71

Q: Return on Asset of RHI Magnesita India Ltd?

RHI Magnesita India Ltd Return on Asset is 4.25%, which is in line with its 5-year historical median of 4.25%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of RHI Magnesita India Ltd?

RHI Magnesita India Ltd Return on capital employed is 7.76% for FY-2025, which is in line with its 5-year historical median of 7.76%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Check Before You Invest : RHI Magnesita India Ltd

Snapshot

Q.1 Which industry/sub-sector does RHI Magnesita India Ltd belong to?

RHI Magnesita India Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Refractories segment.

Q.2 Is RHI Magnesita India Ltd a good quality company?

RHI Magnesita India Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is RHI Magnesita India Ltd undervalued or overvalued?

RHI Magnesita India Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	43.87	33.88
Price to Book	2.03	3.58
Price to Sales	2.55	4.33
EV to EBITDA	24.27	26.81

Q.4 Is RHI Magnesita India Ltd a good buy now?

RHI Magnesita India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of RHI Magnesita India Ltd?

RHI Magnesita India Ltd revenue growth is 2.4% for FY-2025, which is below its 5-year CAGR of 15.88%, indicating slower growth.

Q.2 Gross Profit margin of RHI Magnesita India Ltd?

RHI Magnesita India Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.1% for FY-2025, which is below its 5-year median of 14.6%, indicating decreasing margins.

Q.3 Operating Profit Margin of RHI Magnesita India Ltd?

RHI Magnesita India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.69% for FY-2025, which is below its 5-year median of 15.32% indicating decreasing margins.

Q.4 Net Profit Margin of RHI Magnesita India Ltd?

RHI Magnesita India Ltd Net Profit Margin is 7.71% for FY-2025, is in line with its 5-year median of 7.71%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	13.1	14.6
Operating Profit Margin (%)	13.69	15.32
Net Profit Margin (%)	7.71	7.71

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of RHI Magnesita India Ltd?

RHI Magnesita India Ltd Return on Asset is 4.25%, which is in line with its 5-year historical median of 4.25%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of RHI Magnesita India Ltd?

RHI Magnesita India Ltd Return on capital employed is 7.76% for FY-2025, which is in line with its 5-year historical median of 7.76%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.7 Return on Equity (ROE) of RHI Magnesita India Ltd?

RHI Magnesita India Ltd Return on equity is 5.59% for FY-2025, which is in line with its 5-year historical median of 5.59%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of RHI Magnesita India Ltd?

RHI Magnesita India Ltd Cash conversion cycle is 99 days, above its 5-year historical median of 67 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.55	0.72
ROE (%)	5.59	5.59
ROCE (%)	7.76	7.76
Cash Conversion Cycle	99 days	67 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of RHI Magnesita India Ltd?

RHI Magnesita India Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of RHI Magnesita India Ltd?

RHI Magnesita India Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of RHI Magnesita India Ltd?

Q.1 Promoter shareholding and pledge status of RHI Magnesita India Ltd?

Promoters hold 56.07% of the RHI Magnesita India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does RHI Magnesita India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of RHI Magnesita India Ltd vs industry peers?

RHI Magnesita India Ltd revenue CAGR is 15.88%, compared to the industry median CAGR of 4.42%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	2.4	4.4
Gross Profit Growth (%)	-8.3	12.4
Operating Profit Growth (%)	-9	12.3
Net Profit Growth (%)	0	14.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.55	0.85
ROE (%)	5.59	13.08
ROCE (%)	7.76	14.66
Cash Conversion Cycle (days)	98.92	95

Valuation & price assessment

Q.1 Stock return of RHI Magnesita India Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 17.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	17.3%	4.8%	-14.7%	-6.6%

Q.2 Valuation ratios of RHI Magnesita India Ltd vs historical?

The current P/E ratio of 43.87 is higher than its historical median of 33.88, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	43.87	33.88	34.18
Price to Book	2.03	3.58	3.58
Price to Sales	2.55	4.33	3.86
EV to EBITDA	24.27	26.81	15.61

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Check Before You Invest : RHI Magnesita India Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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