Small cap stock which is a manufacturer of Specialized refractories and requisite operating systems for the Iron and Steel Industry jumped upto 4 percent in the day’s trade following the formation of a new Joint Venture to setup a factory for manufacturing various types of magnesite bricks used in industrial applications.
Price Action
With a market capitalization of Rs. 2,204 Crores, the shares of IFGL Refractories Ltd (NS:IFGL) were trading at Rs. 611.45 per equity share, up 3.2 percent from its previous day’s close price of Rs. 592.55.
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What Happened
IFGL Refractories Limited has entered into a Joint Venture Agreement with Marvels’ International Group Co Ltd of Seychelles and Marvel Refractories (Anshan) Company Limited of P R China to set up a Joint Venture Company in India with limited liability.
The new JV aims to set up a green field facility for the manufacture of Basic Fired Magnesite Spinel Bricks, Basic Fired Magnesite Bricks, and Fired Magnesia Chrome Bricks in India, used in various industrial applications, including steelmaking converters, electric arc furnaces, and many more.
The new project will be set up with an initial investment of Rs. 300 Crores. The Trial and commercial production will commence by March 2026. In the new JV, IFGL Refractories Limited will hold a 51 percent stake and MIG will hold the rest 49 percent.
About the Company
IFGL Refractories Limited is a manufacturer of Specialized refractories and requisite operating systems for the Iron and Steel Industry. Its products include Slide Gate Systems, Purging Systems, Ladle Lining & Ladle Refractories, Tundish Furniture & Tundish Refractories, compounds, flux, and many others.
In Q1FY25 part of its Phase 3 expansion, it inaugurated a state-of-the-art casting flux granules production unit at Visakhapatnam, with an annual capacity of 18,000 MT. features cutting-edge technology, including fully automatic batching and spray drying.
It also launched a new Magnesia Carbon production line, as part of its Phase 3 expansion. The facility, with an initial capacity of 9,000 MT/annum, will enhance performance, longevity, and reliability in high-temperature applications.
Financials and Ratios
Its Revenue from operations declined by 2.20 percent from Rs. 424 Crores in Q1FY24 to Rs. 415 Crores in Q1FY25, accompanied by profits of Rs. 30 Crores to Rs. 25 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 7.82 percent, and a return on capital employed (ROCE) of 8.97 percent. It has reported a debt-to-equity ratio of 0.16.
Written by: Bharath K.S
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