Refractory Shap. (REFRACTORY)

Score breakdown: P/E: 3/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Strong recent growth: sales +46.26%, profit +42.86%
• Reasonable earnings multiple at P/E 11.47
• ROCE of 16.82% indicates adequate capital efficiency
• High promoter holding of 72.48% aligns interests
• Piotroski F-Score of 7 suggests improving financial health

Concerns

• No book value or debt/equity data—opacity for small-cap investor
• Zero dividend yield; total return depends on price appreciation
• Cyclical industry (electrodes & refractories) means 46% growth may be unsustainable
• Small market cap of ₹85 Cr with wide 52-week range indicates volatility and liquidity risk

AI Analysis

Let's look at Refractory Shap. as a classic Graham-Buffett exercise. Price is ₹41.05, market cap just ₹85 Cr. The P/E of 11.47 is not demanding, but I always ask: what am I actually buying? Sales grew 46% and profits 42.86%, which is impressive, but this is a small, capital-intensive refractory business in a cyclical industrial space. The 52-week range of ₹25 to ₹66 tells me volatility is the norm here. With a PEG of 0.26, the market is pricing in very little growth relative to the recent trajectory. But be careful—small companies with 72.48% promoter holding can have governance advantages, but also low free float and violent moves. ROCE of 16.82% is respectable, and a Piotroski F-Score of 7 suggests the balance sheet is improving. However, I don't have book value, debt-to-equity, or ROE figures. In the Graham tradition, I cannot underwrite what I cannot see. The latest quarter shows ₹34 Cr sales and ₹5 Cr net profit, so annualised earnings roughly support the current price. But this is a cyclical business—refractories follow steel and cement demand. A 46% sales growth number cannot be extrapolated; it may be peak-cycle pricing. The dividend yield is zero, so the only return is capital appreciation. I'd call it a Cyclical with momentum, not a stalwart. At ₹41, it's not a bargain, but it's not crazy either. I would want a margin of safety—perhaps a larger cap or lower entry. For now, I watch, I don't chase.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer