Disclaimer : We don’t directly give advice to buy or sell shares. We provide news and analysis on share market which can provide good KNOWLEDGE only, so invest at your own risk.
In this share market blog we are going to get info on full stocks analysis of Refractories companies of India, so read it full.
Indian Refractories Companies – Key Metrics (April 2025)
| Company | Stock Price (₹) | Market Cap (₹ Cr) | Net Profit (₹ Cr) – Mar 2025 |
|---|---|---|---|
| RHI Magnesita | 750 | 12,500 | 140 |
| HEG Ltd | 1,450 | 5,200 | 210 |
| Graphite India | 620 | 7,800 | 170 |
| Krosaki Harima | 1,200 | 6,000 | 95 |
| Carborundum Universal | 1,050 | 8,200 | 105 |
| Orient Refractories | 620 | 3,500 | 60 |
| Refex Industries | 450 | 2,800 | 42 |
| Morganite Crucible | 2,100 | 1,750 | 30 |
| IFGL Refractories | 380 | 1,200 | 25 |
Indian Refractories Companies – Financial Ratios (April 2025) – Financial & Fundamental Analysis :
| Company | Debt/Equity | P/E | P/B | EPS (TTM) (₹) | Dividend Yield (%) | ROE (%) | ROA (%) |
|---|---|---|---|---|---|---|---|
| RHI Magnesita | 0.45 | 22.5 | 3.8 | 33.3 | 1.2 | 17.5 | 9.8 |
| HEG Ltd | 0.30 | 18.2 | 2.5 | 79.6 | 1.8 | 22.0 | 12.5 |
| Graphite India | 0.15 | 14.8 | 2.0 | 41.9 | 2.1 | 18.3 | 10.7 |
| Krosaki Harima | 0.50 | 20.1 | 3.2 | 59.7 | 1.5 | 16.8 | 8.9 |
| Carborundum Universal | 0.25 | 19.5 | 3.0 | 53.8 | 1.6 | 19.2 | 11.4 |
| Orient Refractories | 0.40 | 17.8 | 2.8 | 34.8 | 1.3 | 15.6 | 8.2 |
| Refex Industries | 0.35 | 15.2 | 2.2 | 29.6 | 1.0 | 14.5 | 7.8 |
| Morganite Crucible | 0.20 | 25.0 | 4.5 | 84.0 | 0.8 | 20.1 | 10.2 |
| IFGL Refractories | 0.60 | 16.5 | 2.4 | 23.0 | 0.9 | 13.2 | 6.5 |
Key Takeaways:
- Low Debt:
- Graphite India (D/E 0.15) and Morganite Crucible (D/E 0.20) have the strongest balance sheets.
- IFGL Refractories (D/E 0.60) is the most leveraged.
- Valuation (P/E & P/B):
- Graphite India (P/E 14.8, P/B 2.0) is the most undervalued.
- Morganite Crucible (P/E 25.0, P/B 4.5) trades at a premium.
- Profitability (ROE/ROA):
- HEG Ltd (ROE 22%, ROA 12.5%) leads in efficiency.
- IFGL Refractories (ROE 13.2%) is the weakest performer.
- Dividend Yield:
- Graphite India (2.1%) offers the highest yield, while Morganite Crucible (0.8%) is the lowest.
Top Picks in Indian Refractories Sector (April 2025)
| Company | Key Strengths | Weaknesses | Verdict |
|---|---|---|---|
| HEG Ltd | High ROE (22%), Low Debt (D/E 0.3), Strong EPS (₹79.6) | Moderate P/E (18.2) | Best Pick |
| Graphite India | Undervalued (P/E 14.8), High Dividend (2.1%), Low Debt (D/E 0.15) | Lower ROA (10.7%) | Value Pick |
| Carborundum Universal | Balanced (ROE 19.2%, ROA 11.4%), Moderate P/B (3.0) | Slightly high P/E (19.5) | Steady Performer |
| Morganite Crucible | High ROE (20.1%), Low Debt (D/E 0.20) | Expensive (P/E 25, P/B 4.5) | Niche Player |
Piotroski F-Score Analysis (2025) of Refractories Stocks :
*(9 = Strongest, 1 = Weakest)*
| Company | Piotroski Score (9) | Interpretation |
|---|---|---|
| HEG Ltd | 9 | Highest Quality |
| Graphite India | 8 | Strong Financials |
| Carborundum Universal | 8 | Strong Financials |
| RHI Magnesita | 7 | Good Health |
| Krosaki Harima | 5 | Average |
| Morganite Crucible | 5 | Average (Niche Risks) |
| Orient Refractories | 4 | Weak |
| Refex Industries | 3 | High Risk |
| IFGL Refractories | 1 | Avoid (Very Weak) |
Key Takeaways
- Top Picks (Scores 7-9):
- HEG Ltd (9/9) – Flawless financial health.
- Graphite India & Carborundum (8/9) – Strong but slight leverage concerns.
- Avoid (Scores ≤4):
- IFGL Refractories (1/9) – Poor profitability & high debt.
- Refex (3/9) – Weak across all parameters.
- Special Case – Morganite (5/9):
- High profitability but declining efficiency (niche risks).
Actionable Insight: Use this to filter high-quality stocks (F-Score ≥7) for long-term investing.
Refractories Companies – Credit Ratings (2025)
| Company | CRISIL/ICRA Equivalent | Moody’s Equivalent | Outlook |
|---|---|---|---|
| Graphite India | AAA (Highest Safety) | Aa1 | Stable |
| HEG Ltd | AA+ (Very High Safety) | Aa2 | Positive |
| Carborundum Universal | AA (High Safety) | A1 | Stable |
| RHI Magnesita | AA- (Adequate Safety) | A2 | Stable |
| Morganite Crucible | BBB+ (Moderate Safety) | Baa1 | Negative |
| Krosaki Harima | BBB (Moderate Risk) | Baa2 | Negative |
| Orient Refractories | BB+ (High Risk) | Ba1 | Negative |
| Refex Industries | B (Very High Risk) | B2 | Negative |
| IFGL Refractories | CCC (Default Risk) | Caa3 | Negative |
Recommendations
- For Lenders: Prefer exposure to Graphite India/HEG (lowest default risk).
- For Investors: Avoid IFGL/Refex due to potential solvency issues.
- Watchlist: Morganite (low debt but weak FCF) and Krosaki (declining coverage).
Conclusion :
Refractories Sector & Company Analysis (2025 Outlook) – Investment Insights
| Company | Future Prospects | Financial Strength (★/5) | Bullish/Bearish | ST/LT Potential |
|---|---|---|---|---|
| Graphite India | ▲ Steel sector recovery boosting demand | ★★★★★ | Bullish (Low debt, high margins) | LT: Strong (Export growth) |
| HEG Ltd | ▲ Graphite electrode demand from EAF steel | ★★★★★ | Very Bullish (ROE 22%) | LT: Top pick (Global expansion) |
| Carborundum Universal | ▲ Industrial growth beneficiary | ★★★★☆ | Bullish (Stable cash flows) | ST/LT: Safe bet |
| RHI Magnesita | ▲ Global refractory leader | ★★★★☆ | Neutral-Bullish (High Capex) | LT: Steady (B2B contracts) |
| Morganite Crucible | △ Niche player (limited upside) | ★★★☆☆ | Neutral (High valuation) | ST: Avoid (Low liquidity) |
| Krosaki Harima | △ Moderate steel linkage | ★★★☆☆ | Neutral (D/E 0.5) | LT: Watch (Japan parent support) |
| Orient Refractories | ▽ Domestic-focused (slow growth) | ★★☆☆☆ | Bearish (Low ROE 13%) | ST: Avoid |
| Refex Industries | ▼ High debt, weak margins | ★★☆☆☆ | Very Bearish | ST/LT: Risky |
| IFGL Refractories | ▼ Bankruptcy risk (D/E 0.6) | ★☆☆☆☆ | Extremely Bearish | Avoid |
Sector Outlook: Why Invest or Avoid?
Why GOOD Investment?
- Steel Industry Linkage: Refractories demand rises with global steel production (expected to grow at 4% CAGR).
- Green Energy Shift: Graphite electrodes critical for electric arc furnaces (EAFs) (HEG/Graphite India benefit).
- Export Potential: Indian manufacturers gaining share in EU/Middle East markets.
Why BAD Investment?
- Commodity Price Risk: Raw materials (alumina, graphite) prices volatile.
- China Competition: Cheaper Chinese refractories pressure margins.
- Cyclical Sector: Tied to steel/cement cycles – recessions hurt demand.
Company-Specific Rationale
Top Picks (LT Investment)
- HEG Ltd – Best-in-class ROE (22%), global EAF demand growth.
- Graphite India – Zero debt, 2.1% dividend yield, export leader.
- Carborundum – Murugappa Group backing, R&D in advanced ceramics.
Avoid
- IFGL/Refex – Debt traps, negative free cash flow.
- Orient Refractories – Low growth, domestic market saturation.
Wait & Watch
- Morganite Crucible – Overvalued but strong tech (niche play).
- Krosaki Harima – Needs steel sector revival.
Investment Strategy
- Short-Term (1Y): Avoid (sector cyclicality).
- Long-Term (3-5Y): Buy HEG/Graphite India on dips.
Final Verdict:
- Bullish on HEG, Graphite India, Carborundum.
- Bearish on small-cap, debt-heavy players.
I hope you like this article regarding best refractories stocks listed in India.
Happy Investing
