Refex Industries (REFEX)
CyclicalFairStock Score: 53/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹297.25 |
| Market Cap | ₹4,078.85 Cr |
| P/E Ratio | 14.1 |
| ROCE | 20.89% |
| ROE | 33.05% |
| Dividend Yield | 0.67% |
| Profit Growth | 207.1% |
| Debt/Equity | 0.15 |
| Sales Growth | 139.1% |
| Promoter Holding | 55.8% |
| 52-Week Range | ₹188 — ₹415 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹109.63 |
Strengths
- High ROE of 33.05% and ROCE of 20.89% indicate efficient capital allocation
- Low debt/equity of 0.14 keeps financial risk modest
- Promoter holding of 55.80% aligns owner interests
- Reasonable P/E of 16.07 if current earnings prove sustainable
- Piotroski F-Score of 6/9 reflects acceptable financial health
Concerns
- Sales declined 16.04%, pointing to cyclical or demand weakness
- P/B of 5.50 against book value of ₹45.86 offers little asset margin of safety
- PEG of 2.27 and dividend yield of 0.23% make growth and income unattractive
- FairStock Score of 37/100 signals mixed fundamentals
AI Analysis
Looking at Refex, I first ask whether the business earns good returns on capital and whether I can understand its economics. Industrial gases is a decent industry—customers need repeat supplies, and the 20.89% ROCE and 33.05% ROE show efficient use of money. Debt/equity of 0.14 is conservative; I sleep well with low leverage. But I cannot ignore the top line: sales fell 16.04%. That tells me demand is cyclical or customer industries are under pressure. Profit still rose 7.09%, perhaps from margin or cost control, but I value businesses on sustainable earning power, not one-year flattery. At ₹252, the market cap is ₹3,026 Cr, P/E 16.07, so paying 16 times earnings for a company with declining revenue and a PEG of 2.27 is not a Graham special. Book value is only ₹45.86; at 5.5 times book, I get no margin of safety from the balance sheet. Dividend yield of 0.23% means the wait is not paid. Promoter holding of 55.80% is positive—owners are in the boat. A Piotroski score of 6/9 suggests financial health is okay, but mixed. The 52-week range of ₹188 to ₹415 shows Mr. Market has been moody; current price is closer to the low, which can be interesting, but value needs numbers, not falling prices. This is a cyclical, not a compounder I can buy at any price. I would wait for evidence that sales growth has turned positive, and only then buy with a margin of safety.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer