RHIM - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

🔥 Fundamental Stock Analysis: RHI Magnesita India Ltd (RHIM) Rating: 3.2

📊 Core Financials & Profitability

Return Metrics

ROE: 5.16% and ROCE: 7.01% — both relatively muted; points to inefficient capital deployment versus sector peers.

EPS: ₹9.81 — low relative to elevated P/E; earnings not keeping pace with valuation.

Quarterly Earnings

PAT down –11.7% QoQ — decline from ₹47.5 Cr to ₹36.2 Cr raises concerns on margin stability or cost pressures.

Needs stronger revenue drivers or cost optimization to revive profitability.

Balance Sheet Quality

Debt-to-Equity: 0.09 — extremely low leverage, a financial strength highlight.

Dividend Yield: 0.50% — low payout, capital likely reinvested for expansion or innovation.

💸 Valuation Snapshot

Metric Value Interpretation

P/E Ratio 50.5 Overvalued versus industry average (41.2)

P/B Ratio ~2.55 Pricing a premium to book — growth expectations factored in

PEG Ratio –5.57 Negative PEG suggests declining growth outlook

RSI / MACD RSI 53.7, MACD 7.02 Momentum holding steady; mildly bullish undertone

DMA Analysis ₹495 vs DMA50 ₹480 / DMA200 ₹498 Floating near key averages — technically stable but not breakout-ready

Volume: Current volume (~2.8 lakh) below weekly average (~8.4 lakh) — signals waning short-term interest.

52W Index: 40.2% — well off highs; re-rating possible if earnings trend improves.

🔥 Business Model & Competitive Moat

Company Profile: Leading supplier of refractory solutions — essential in steel, cement, and other high-temperature industries.

Moat & Differentiators

Technical leadership in high-performance ceramics and fused magnesia solutions.

Beneficiary of capex cycles in steel and cement industries.

Part of the global RHI Magnesita Group — brings R&D and operational scale advantages.

Risks

Earnings volatility from raw material cost swings and industrial demand cycles.

DII holding dipped (–0.43%) — may reflect concern on performance consistency.

📍 Entry Zone & Investment View

Suggested Entry Zone: ₹475–₹495 — technical support near DMA50; enter cautiously amid earnings softness.

Holding Strategy

Suitable for thematic exposure to infrastructure, steel, and cement supply chains.

Watch quarterly margins, volume growth, and global demand trends.

Consider staggered accumulation if valuation moderates or PAT growth recovers.

Interested in comparing RHIM against peers like Orient Refractories or Vesuvius India on cost efficiency, growth metrics, and valuation premium? I can whip up a clean comp sheet in moments. Just say the word.

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