Shares of Refex Industries, a gas distribution company, shot up 20 percent on Friday’s early trades to hit the 20 percent upper circuit. Its shares were locked at ₹ 426.65 apiece on the National Stock Exchange (NSE). This happened after the company reported robust results for the quarter and the year ended on March 31, 2023.
Refex Industries is a specialist manufacturer and re-filler of non-ozone depleting refrigerant gases that are replacements for chloro-fluoro-carbons (CFCs). It is also engaged in the handling and disposal of fly ash, round-the-clock services of coal yard management and crushing of uncrushed coal and coal trading to power plants located in Chhattisgarh and Maharashtra.
The company posted revenue from operations of ₹ 630.12 crores for the January to March quarter of 2023 (Q4FY23), up 65.65 percent from ₹ 380.39 crores in the October to December quarter of 2023 (Q3FY23). It had reported a revenue of ₹ 176.91 crores in the January to March quarter of the preceding year (Q4FY22), indicating an increase of a whopping 256.18 percent.
On a sequential basis, net profit climbed 93.77 percent to ₹ 50.67 crores in Q4FY23, as compared to ₹ 26.15 crores in Q3FY23. Similarly, it increased by a massive 111.04 percent as compared to ₹ 24.01 crores reported in the corresponding quarter last year (Q4FY22).
For the entire year (FY23), the company’s top line (revenue) came in at ₹ 1,629.14 crores, up 266.96 percent as compared to ₹ 443.95 crores in the previous year FY22. It reported an increase of 155.70 percent in its bottom line (net profit) to ₹ 116.06 crores in FY23, as compared to ₹ 45.39 crores in FY22.
The board of directors have recommended a final dividend of ₹ 2 (20 percent of the face value of ₹ 10) per equity share, for the financial year ended March 31, 2023, subject to approval by shareholders at its ensuing annual general meeting.
In the past year, the company’s share price increased from ₹ 119.15 to ₹ 426.65 delivering multibagger returns of 258 percent. If an investor would have invested ₹ 1 lakh in the company’s shares two years ago, the value of their holdings would have been ₹ 3.58 lakhs today!
With a market capitalization of ₹ 786 crores, Refex Industries is a small-cap stock. It has a high return on equity of 28.06 percent and an ideal debt-to-equity ratio of 0.45. Its shares were trading at a price-to-earnings ratio (P/E) of 8.47.
Written by Simran Bafna
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