Buzzing stock: Orient Refractories trades at all-time high level
In just one year, Orient Refractories Limited has rallied by approximately 147 per cent making an all-time high level of Rs 319.20 from its 52-week low level of Rs 129.50 on BSE. On a YTD basis, this stock has given approximately 27 per cent returns to the investors.
Orient Refractories is in the business of manufacturing and marketing special refractory products, systems & services to the steel industry in India and globally. It is the market leader for special refractories in India.
One of the main reasons behind the recent rally is the strong performance that it delivered during December 2020 quarter i.e. Q3FY21. Its consolidated revenue for the quarter came in at Rs 200.88 crore, registering 19.4 per cent YoY increase, led by a rise in the demand from the steel industry. EBITDA for the quarter grew by 25.9 per cent YoY while EBITDA margin stood at 17.5 per cent. PAT came in at Rs 24.39 crore, registering a YoY increase of 23.4 per cent.
Also, a recent rally in metal stocks was seen due to the rise in metal prices. Orient Refractories, being one of the direct beneficiaries of the metal segment, was able to witness and be a part of this rally. Demand for refractory is primarily dependent on the consumption of steel, which accounts for about 75 per cent of the total value while the remaining is used for glass, cement, non-ferrous, petrochemicals, etc.
The company is in the process of building an R&D center at Bhiwadi (Rajasthan). Additionally, a regional shared service centre (Integrated Business Centre) would be set up in India by next year. The management is also planning to enter the foundry business in India.
On Friday, the stock of Orient Refractories surged 4.5 per cent to Rs 319.20 (all-time high) from its previous close of Rs 305.85 on BSE.