RHI Magnesita India Refractories Limited (RHIM) AI Stock Analysis

• Market Cap: ₹77.55B
• Dividend Yield: 0.55%
• Average Volume (3M): 141.56K
• Price to Earnings (P/E): 38.5
• Beta (1Y): 1.17
• Revenue Growth: 8.65%
• EPS Growth: N/A
• Country: IN
• Employees: 1,592
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 3.00
• Shares Outstanding: 206,501,420
• 10 Day Avg. Volume: 405,884
• 30 Day Avg. Volume: 141,564
• PEG Ratio: -0.18
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 3.00
• P/FCF Ratio: 50.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 13.13
• Revenue Forecast (FY): ₹41.89B

• Rating: 59 Neutral
• Price Target: ₹392.00 ▼(-13.96% Downside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is anchored by solid financial stability and cash generation (low leverage, strong equity ratio, good cash conversion). This is tempered by an expensive valuation (high P/E with low yield) and a weak-to-neutral technical trend (below longer-term moving averages and negative MACD).

Positive Factors

Low leverage / strong balance sheet

A very low debt-to-equity ratio (0.09) and a high equity ratio (77.3%) give the company durable financial flexibility. This reduces refinancing risk, supports capital spending and working-capital cycles, and permits sustained investment in plant and service capabilities through downturns.

Solid cash generation

Strong cash conversion (OCF to net income 1.7) and double-digit free cash flow growth show consistent ability to turn earnings into liquidity. That supports reinvestment in technical services, maintenance, and working capital without overreliance on external financing.

Business model & solutions revenue

A product-plus-solutions model (shaped/unshaped refractories plus installation and technical services) builds deeper customer ties and recurring revenue from maintenance cycles. This enhances stickiness, supports margin resilience and creates opportunities for higher-value service offerings.

Negative Factors

Modest net profitability

Despite healthy gross and EBITDA margins, net margin and ROE remain modest, limiting retained earnings and shareholder returns. Structural cost pressures or limited pricing power could constrain margin expansion and reduce funds available for growth or higher dividends.

Recent revenue softness

A recent year-over-year revenue dip signals vulnerability in demand or pricing execution. For a cyclical supplier, such declines can persist across relining cycles and slow capital intensity periods, pressuring scale advantages and compressing fixed-cost absorption over multiple quarters.

End-market cyclicality / concentration

Revenue and refractories consumption closely track steel, cement and other heavy industries. That end-market concentration makes revenue and utilization sensitive to industrial cycles, exposing long-term cash flow predictability and capital rollout to sectoral downturns.

RHI Magnesita India Refractories Limited Business Overview & Revenue Model

Company Description

RHI Magnesita India Limited manufactures and trades in refractories, monolithics, bricks, and ceramic paper for the iron and steel industry primarily in India. The company offers isostatically pressed continuous casting refractories; slide gate plate; nozzles and well blocks; tundish nozzles; and bottom purging refractories and top purging lances, as well as rendering management services. It also provides slag arresting darts; basic spray mass for tundish working linings; castables; alumina bricks; and magnesia carbon bricks. In addition, the company serves steel, cement, nonferrous metals, glass, environment and energy, foundry, and paper and pulp industry. It also exports its products to approximately 70 countries. The company was formerly known as Orient Refractories Limited and changed its name to RHI Magnesita India Limited in July 2021. The company was incorporated in 2010 and is based in Gurugram, India. RHI Magnesita India Limited is a subsidiary of Dutch US Holding B.V.

How the Company Makes Money

RHIM makes money primarily by selling refractory products and providing refractory-related solutions to industrial customers. Key revenue streams include: (1) Product sales: revenue from manufactured refractory items such as shaped refractories (e.g., bricks) and unshaped/monolithic refractories (e.g., castables, mixes) supplied for installation in high-temperature units across steel and other process industries; (2) Solutions and services: revenue from value-added offerings tied to refractory consumption and performance, such as application/installation support, maintenance/repair, and technical services aimed at improving refractory life and reducing downtime for customers; (3) Customer and sector mix: earnings are influenced by demand levels in end-user industries—especially steel—where refractory consumption correlates with production volumes, relining cycles, and operating intensity. Specific details on significant partnerships or named customer contracts are null.

RHI Magnesita India Refractories Limited Financial Statement Overview

Summary

Solid overall fundamentals supported by low leverage (debt-to-equity 0.09), strong equity ratio (77.3%), and healthy EBIT/EBITDA margins (7.6%/13.7%). Offsetting this is modest profitability (net margin 5.5%, ROE 5.1%) and a recent revenue decline (-2.8%). Cash generation is a strength with strong conversion (operating cash flow to net income 1.7) and free cash flow growth (15.5%).

Income Statement

The company exhibits a strong gross profit margin of 24.7% for the most recent year, but net profit margin is moderate at 5.5%. Revenue has fluctuated, with a decline of 2.8% from the previous year. EBIT and EBITDA margins are healthy at 7.6% and 13.7% respectively, indicating efficient core operations despite some net income volatility in prior years.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.09, highlighting low leverage. The equity ratio is strong at 77.3%, suggesting solid financial stability. Return on equity is moderate at 5.1%, reflecting decent profitability on shareholder equity.

Cash Flow

The company shows consistent free cash flow with a recent growth rate of 15.5%. The operating cash flow to net income ratio is 1.7, indicating effective conversion of net income into cash flows. Free cash flow to net income ratio is strong at 1.1, showcasing solid cash generation capabilities.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	39.24B	36.74B	37.81B	27.26B	19.99B	13.61B
Gross Profit	13.44B	9.07B	6.16B	4.99B	7.10B	4.67B
EBITDA	4.40B	5.05B	2.35B	-2.90B	3.94B	2.21B
Net Income	1.57B	2.03B	-1.00B	-4.66B	2.69B	1.37B
Balance Sheet
Total Assets	53.73B	51.76B	51.16B	58.81B	16.74B	12.60B
Cash, Cash Equivalents and Short-Term Investments	855.95M	974.80M	507.92M	3.23B	628.10M	1.57B
Total Debt	4.15B	3.80B	4.87B	15.89B	647.06M	623.86M
Total Liabilities	13.53B	11.77B	12.70B	29.00B	6.46B	4.54B
Stockholders Equity	40.20B	39.99B	38.46B	28.91B	10.29B	8.06B
Cash Flow
Free Cash Flow	-7.32M	2.18B	1.88B	1.93B	-351.87M	796.12M
Operating Cash Flow	602.82M	3.37B	2.71B	2.38B	272.61M	1.65B
Investing Cash Flow	-1.20B	-1.18B	-3.12B	-11.50B	-699.10M	-787.62M
Financing Cash Flow	-119.10M	-1.72B	-2.31B	11.72B	-502.83M	-536.84M

RHI Magnesita India Refractories Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 455.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RHIM, the sentiment is Negative. The current price of 455.6 is above the 20-day moving average (MA) of 424.85, above the 50-day MA of 437.62, and below the 200-day MA of 462.00, indicating a bearish trend. The MACD of -18.83 indicates Positive momentum. The RSI at 29.51 is Positive, neither overbought nor oversold. The STOCH value of 15.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RHIM.

RHI Magnesita India Refractories Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VESUVIUS	64 Neutral	₹96.51B	36.94	―	0.30%	16.07%	-6.83%
IFGLEXPOR	62 Neutral	₹10.78B	-121.96	―	1.66%	11.62%	-72.86%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RHIM	59 Neutral	₹77.55B	38.50	―	0.55%	8.65%	―

RHI Magnesita India Refractories Limited Corporate Events

RHI Magnesita India Seeks Shareholder Nod for Board Appointment via E-voting Postal Ballot

RHI Magnesita India Refractories Limited has initiated a postal ballot process to seek shareholder approval for confirming the appointment of Mr. Alvaro Martin Rivero as a Non-Executive and Non-Independent Director, who will be liable to retire by rotation. The company is conducting the exercise entirely through electronic means in line with Ministry of Corporate Affairs guidelines, with e-voting scheduled between March 7 and April 5, 2026, underscoring its adherence to regulatory norms and giving shareholders a structured timeline to participate in this governance decision.

The postal ballot notice is being sent electronically to shareholders whose email IDs are registered as of the March 4, 2026 cut-off date, while unregistered investors are encouraged to update their details to receive the communication and vote. By engaging National Securities Depository Limited to provide the remote e-voting platform and clearly outlining key dates for voting, scrutiny and results declaration, the company highlights its focus on transparent corporate governance and inclusive shareholder participation in board-level appointments.