scorecardresearchRefex Industries: Up over 4600%, this small-cap stock jumped from ₹16

Refex Industries: Up over 4600%, this small-cap stock jumped from 16 to 800 in 5 years

Updated: 28 Jul 2023, 03:09 PM IST
TL;DR.

In CY22 and CY21, the stock delivered a remarkable return of 96.57% and 44.27%, respectively. Even during the first wave of the pandemic, the stock managed to deliver a fabulous return of 86.75%, and in the year before that, it generated a multi-bagger return of nearly 169%.

In terms of financials, the company reported a 112% jump in its consolidated net profit to  <span class='webrupee'>₹</span>51 crore for the March quarter (Q4FY23).

In terms of financials, the company reported a 112% jump in its consolidated net profit to 51 crore for the March quarter (Q4FY23).

Gaining consistent returns in the equity market is no easy feat, as share price volatility can lead to fluctuations on any given day. However, there are exceptional stocks that have proven their ability to deliver steady returns to shareholders over extended periods.

Withstanding market uncertainties, economic downturns, and industry disruptions, these stocks exhibit lower volatility and maintain a consistent upward trajectory. Among these gems, Refex Industries shines brightly, showcasing its resilience and stability in the equity markets.

The company's shares, which were trading at 16.95 apiece five years ago, have zoomed 4619% to trade at the current level of 800. What's even more impressive is that the stock has consistently delivered exceptional gains to its shareholders over the past four years.

In CY22 and CY21, the stock delivered a remarkable return of 96.57% and 44.27%, respectively. Even during the first wave of the pandemic, the stock managed to deliver a fabulous return of 86.75%, and in the year before that, it generated a multi-bagger return of nearly 169%.

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Stock price chart of Refex Industries.

In the current year so far, the stock's bull run continues with a staggering gain of 189%. Notably, the stock recorded its best monthly performance in November last year with a rally of 101%. This marks the largest monthly gain for the stock since it was listed in 2009.

During Thursday's trade, the stock zoomed nearly 5% to register a new lifetime high of 805.9, and in the current month so far, it is up by 47%.

Refex Industries Limited (RIL) is a specialist manufacturer and re-filler of refrigerant gases in India, particularly, environmentally acceptable gases that are replacements for chloro-fluoro-carbons (CFCs). These are used primarily as refrigerants, foam blowing agents, and aerosol propellants.

The company also offers services for handling and disposing Fly Ash, crushing uncrushed coal, and trading coal to power plants. The company forayed into the supply of electricity, and other services to power users, producers, state electricity boards, and distribution companies.

This business has been operational since March 2022, after receiving a power trading license from the Central Electricity Regulatory Commission, as per the company's website.

In terms of financials, the company reported a 112% jump in its standalone net profit to 51 crore for the March quarter (Q4FY23). In the same period of last year, the company recorded a net profit of 24 crore.

Its revenue from operations during the same quarter came in at 630 crore, an increase of 255% from 177 crore posted in the same period of last year.

Looking at the broader picture, its net profit has shown a steady growth trend over the past four fiscal years. In FY20, the company recorded a net profit of 33 crore, and in the subsequent fiscal years of FY21 and FY22, it demonstrated even better performance, achieving net profits of 41 crore and 45 crore, respectively.

In FY23, the company recorded a net profit of 116 crore, an increase of 183% over FY22's net profit of 45 crore, whereas its revenue from operations improved by 266% YoY to 1,629 crore.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

 

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First Published: 28 Jul 2023, 03:09 PM IST