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Last Updated on: 25 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fundamental Analysis of Refex Industries Ltd

Basic Stock Data

Last Updated: July 24, 2024, 10:42 pm

Market Cap 2,919 Cr.
Current Price 252
High / Low255/102
Stock P/E28.9
Book Value 40.9
Dividend Yield0.16 %
ROCE28.8 %
ROE25.7 %
Face Value 2.00
PEG Ratio1.28

Data Source: screener.in

Competitors of Refex Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bhagawati Oxygen Ltd 10.7 Cr. 46.169.0/34.626.0 19.50.00 %11.6 %9.45 % 10.0
Refex Industries Ltd 2,919 Cr. 252255/10228.9 40.90.16 %28.8 %25.7 % 2.00
Linde India Ltd 67,283 Cr. 7,8849,935/4,607160 4030.05 %17.4 %12.9 % 10.0
Industry Average67,283.00 Cr3,965.0593.00211.250.03%14.50%11.18%10.00

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales152839490177265353380630381350302337
Expenses131728277155243317341557345315268294
Operating Profit22121212222237407437353444
OPM %14%14%13%14%12%8%10%10%12%10%10%11%13%
Other Income41211522122538
Interest8222343466677
Depreciation4111122222222
Profit before tax139109321934366830322743
Tax %41%25%26%28%25%27%26%26%25%26%27%28%16%
Net Profit8777241425265122232036
EPS in Rs0.720.670.710.652.291.312.422.374.591.992.121.793.09

Last Updated: July 10, 2024, 9:13 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 9:13 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1725857838774616616334441,6291,371
Expenses2522797536754336095653831,4541,222
Operating Profit-82632228516861175149
OPM %-46%10%7%3%6%2%6%8%11%14%11%11%
Other Income-4300222-1418818
Interest120131019131926
Depreciation322111115679
Profit before tax-161301229485861156132
Tax %0%0%0%-1,613%13%46%-10%31%29%26%26%23%
Net Profit-161350132334145116101
EPS in Rs-1.490.110.290.510.040.093.013.163.904.3210.508.73
Dividend Payout %0%0%0%0%0%0%0%0%8%0%4%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)106.25%200.00%66.67%-100.00%3100.00%3.12%24.24%9.76%157.78%-12.93%
Change in YoY Net Profit Growth (%)0.00%93.75%-133.33%-166.67%3200.00%-3096.88%21.12%-14.49%148.02%-170.71%

Growth

Compounded Sales Growth
10 Years:50%
5 Years:24%
3 Years:29%
TTM:-16%
Compounded Profit Growth
10 Years:56%
5 Years:26%
3 Years:35%
TTM:-13%
Stock Price CAGR
10 Years:69%
5 Years:63%
3 Years:107%
1 Year:60%
Return on Equity
10 Years:36%
5 Years:34%
3 Years:31%
Last Year:26%

Last Updated: July 25, 2024, 6:13 am

Balance Sheet

Last Updated: July 10, 2024, 9:13 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital151515151515151521212223
Reserves-15-14-11-6-5-42760119163292450
Borrowings34119373541097485149161
Other Liabilities19235671154511553128112288114
Total Liabilities5335701186098159138341381752748
Fixed Assets33171615151415228785147144
CWIP000000000039
Investments0000000074747481
Other Assets2017541034583143116181222528514
Total Assets5335701186098159138341381752748

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 129-2-254-44412123-1428-4
Cash from Investing Activity -8134-2-0105-122-5-78-16
Cash from Financing Activity -2-21-226-34-411-526043
Net Cash Flow10-1-01-0317-4-171023

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-42.00-9.00-3.00-34.00-33.00-39.0028.0042.00-6.00-24.0026.00-12.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days1686521537687173694054965581
Inventory Days624174472233724832
Days Payable1,185321281382156264922770794916
Cash Conversion Cycle-393-82-631-47-57-1515-1224867
Working Capital Days-91-107513225515992220845194
ROCE %-25%15%24%6%7%6%61%85%45%25%48%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters49.72%49.72%49.72%49.72%50.21%50.21%50.21%52.70%52.70%52.70%53.33%53.27%
FIIs0.00%0.00%0.00%0.29%0.26%0.00%0.29%0.00%0.07%0.68%0.41%0.20%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.15%0.10%0.00%
Public50.28%50.28%50.28%49.99%49.53%49.78%49.50%47.30%47.23%46.47%46.17%46.53%
No. of Shareholders21,15525,58427,12227,29827,13527,24225,86528,28728,34033,61239,56842,589

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 21Mar 20Mar 19
FaceValue2.0010.0010.0010.0010.00
Basic EPS (Rs.)8.4053.8921.7321.3720.44
Diluted EPS (Rs.)8.3653.8421.7321.3720.44
Cash EPS (Rs.)9.2155.6222.0122.3121.06
Book Value[Excl.RevalReserv]/Share (Rs.)40.17142.2166.4548.9827.61
Book Value[Incl.RevalReserv]/Share (Rs.)40.17142.2166.4548.9827.61
Revenue From Operations / Share (Rs.)119.54736.94301.24426.97297.93
PBDIT / Share (Rs.)14.2182.7534.3436.2719.47
PBIT / Share (Rs.)13.0479.6331.8235.3718.84
PBT / Share (Rs.)10.4970.7427.5531.0318.65
Net Profit / Share (Rs.)8.0452.5019.4921.4120.44
NP After MI And SOA / Share (Rs.)8.1152.5019.4921.4120.44
PBDIT Margin (%)11.8811.2211.398.496.53
PBIT Margin (%)10.9010.8010.568.286.32
PBT Margin (%)8.779.599.147.266.26
Net Profit Margin (%)6.727.126.475.016.86
NP After MI And SOA Margin (%)6.787.126.475.016.86
Return on Networth / Equity (%)20.1636.9129.3343.7074.02
Return on Capital Employeed (%)24.9641.8831.4761.3667.71
Return On Assets (%)11.7615.4211.9924.0119.95
Long Term Debt / Equity (X)0.110.120.000.000.00
Total Debt / Equity (X)0.250.260.000.020.00
Asset Turnover Ratio (%)1.780.002.644.463.60
Current Ratio (X)2.591.591.322.241.14
Quick Ratio (X)2.551.551.282.181.07
Inventory Turnover Ratio (X)30.570.0047.6080.6926.13
Dividend Payout Ratio (NP) (%)0.000.005.130.000.00
Dividend Payout Ratio (CP) (%)0.000.004.540.000.00
Earning Retention Ratio (%)0.000.0094.870.000.00
Cash Earning Retention Ratio (%)0.000.0095.460.000.00
Interest Coverage Ratio (X)5.609.428.0461.97101.50
Interest Coverage Ratio (Post Tax) (X)4.176.995.5643.99107.57
Enterprise Value (Cr.)1642.00596.42180.0732.9954.65
EV / Net Operating Revenue (X)1.190.360.280.040.11
EV / EBITDA (X)9.993.262.500.581.81
MarketCap / Net Operating Revenue (X)1.130.320.310.070.12
Retention Ratios (%)0.000.0094.860.000.00
Price / BV (X)3.351.671.410.681.37
Price / Net Operating Revenue (X)1.130.320.310.070.12
EarningsYield0.060.220.200.630.54

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 304.26

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 20.74% compared to the current price 252

Intrinsic Value: 372.83

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 47.95% compared to the current price 252

Last 5 Year EPS CAGR: 22.54%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 24.75%, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -46.17, which is a positive sign.
  3. The company has higher reserves (88.00 cr) compared to borrowings (53.75 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (210.08 cr) and profit (39.58 cr) over the years.
  1. The stock has a high average Working Capital Days of 52.75, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Refex Industries Ltd:
    1. Net Profit Margin: 6.72%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 24.96% (Industry Average ROCE: 14.50%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ✓ ROE%: 20.16% (Industry Average ROE: 11.18%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.17
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.55
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✓ Stock P/E: 28.9 (Industry average Stock P/E: 92.80)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✓ Total Debt / Equity: 0.25
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Refex Industries Ltd. is a Public Limited Listed company incorporated on 13/09/2002 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L45200TN2002PLC049601 and registration number is 049601. Currently Company is involved in the business activities of Retail sale of household fuel oil, bottled gas, coal and fuel wood. Company’s Total Operating Revenue is Rs. 443.96 Cr. and Equity Capital is Rs. 21.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Industrial GasesGround Floor, Bascon Futura IT Park, New No. 10/2, Old No. 56L, Chennai (Madras) Tamil Nadu 600017admin@refex.co.in
http://www.refex.co.in
Management
NamePosition Held
Mr. Anil JainChairman & Managing Director
Mr. Dinesh Kumar AgarwalNon Executive Director
Ms. Susmitha SiripurapuNon Executive Director
Mr. Ramesh DugarIndependent Director
Mr. Sivaramakrishnan VasudevanIndependent Director
Mr. Krishnan RamanathanIndependent Director

FAQ

What is the latest fair value of Refex Industries Ltd?

The latest fair value of Refex Industries Ltd is ₹304.26.

What is the Market Cap of Refex Industries Ltd?

The Market Cap of Refex Industries Ltd is 2,919 Cr..

What is the current Stock Price of Refex Industries Ltd as on 25 July 2024?

The current stock price of Refex Industries Ltd as on 25 July 2024 is 252.

What is the High / Low of Refex Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Refex Industries Ltd stocks is 255/102.

What is the Stock P/E of Refex Industries Ltd?

The Stock P/E of Refex Industries Ltd is 28.9.

What is the Book Value of Refex Industries Ltd?

The Book Value of Refex Industries Ltd is 40.9.

What is the Dividend Yield of Refex Industries Ltd?

The Dividend Yield of Refex Industries Ltd is 0.16 %.

What is the ROCE of Refex Industries Ltd?

The ROCE of Refex Industries Ltd is 28.8 %.

What is the ROE of Refex Industries Ltd?

The ROE of Refex Industries Ltd is 25.7 %.

What is the Face Value of Refex Industries Ltd?

The Face Value of Refex Industries Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Refex Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE