1. At a Glance
India’s only ramming mass brand worth ramming into your stock portfolio? With patents, plants, and profits scaling up, RPEL is one of those rare BSE-listed names that sounds like a coaching class but performs like a multibagger. From dust to dividends, this one has crushed expectations like a quartz crystal.
2. Introduction with Hook
Imagine if the material used in steel furnaces started delivering hotter returns than steel stocks themselves. Raghav Productivity Enhancers Ltd (RPEL) — a company that sounds like it teaches time management but actually manufactures quartz-based ramming mass — has done exactly that.
- Stock CAGR (3Y): 74%
- 3-Year Profit Growth: 29%
- PAT in FY25: ₹37 Cr (up from ₹9 Cr in FY21)
It’s no longer just silica. It’s Silicon Valley vibes… with Indian industrial DNA.
3. Business Model (WTF Do They Even Do?)
- RPEL manufactures acidic ramming mass, a material used in lining the inner walls of induction furnaces for the steel industry.
- Clients include steel giants like R.L. Steel and Mahalakshmi TMT.
- Also produces quartz powder and tundish boards (used in molten metal casting).
- Operates under the brand “Raghav” — because why wouldn’t you want your furnace materials to have the vibe of a motivational speaker?
- Revenue Model: Direct B2B sales + brand premium in an otherwise commoditized industry.
4. Financials Overview
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 65 | 100 | 137 | 133 | 200 |
| EBITDA (₹ Cr) | 15 | 25 | 36 | 40 | 54 |
| EBITDA Margin (%) | 23% | 25% | 26% | 30% | 27% |
| PAT (₹ Cr) | 9 | 18 | 25 | 26 | 37 |
| EPS (₹) | 2.10 | 4.09 | 5.48 | 5.66 | 8.05 |
| Dividend/Share (₹) | 0.12 | 0.25 | 0.27 | 0.45 | 1.00 |
From a dusty ₹65 Cr revenue in FY21 to ₹200 Cr in FY25 — this company knows how to heat things up.
5. Valuation
- Current P/E: 85.4 (High, but typical of high-margin niche plays)
- Book Value: ₹42.2 → Price/Book = ~16.3x (Yikes)
- EV/EBITDA: ~57x (Expensive, but margins justify)
Fair Value Range (FY26E):
₹480–₹620 (assuming 25–30x sustainable P/E on FY26E EPS of ₹16–₹20 post capex)
Valuation reflects not just numbers — but patent-led moat + brand premium + freakish capital efficiency.
6. What’s Cooking – News, Triggers, Drama
- Patent Approved (Dec 2024) for silica ramming mass production — global first, gives them IP moat.
- Bonus Issue: 1:1 in Dec 2024.
- NSE Listing: Added visibility from August 2024.
- Capacity Expansion: 90,000 MTPA added.
- Dividend growth: From ₹0.12 to ₹1.00 in 5 years.
Oh, and they survived a cyclone in 2023. Literally.
7. Balance Sheet
| Item (₹ Cr) | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Equity Capital | 11 | 11 | 11 | 23 | 46 |
| Reserves | 54 | 98 | 122 | 135 | 148 |
| Borrowings | 0 | 6 | 10 | 9 | 7 |
| Total Liabilities | 75 | 132 | 161 | 186 | 231 |
| Fixed Assets | 28 | 27 | 27 | 88 | 93 |
| Investments | 0 | 2 | 6 | 14 | 34 |
Takeaway: Near debt-free. Post-expansion, tangible asset base doubled. No nonsense, clean sheet.
8. Cash Flow – Sab Number Game Hai
| Item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Operating Cash Flow (₹) | 11 | 9 | 20 | 21 | 39 |
| Investing Cash Flow (₹) | -13 | -42 | -24 | -15 | -30 |
| Financing Cash Flow (₹) | 8 | 29 | 3 | -3 | -5 |
| Net Cash Flow (₹) | 7 | -4 | -1 | 2 | 4 |
Capex-heavy, but funded via internal accruals + bonus, not junk debt. CFO to PAT ratio still healthy.
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 26% | 23% | 26% |
| ROE (%) | 21% | 19% | 21% |
| Debt/Equity | 0.08 | 0.06 | 0.04 |
| Inventory Days | 159 | 260 | 223 |
| Debtor Days | 98 | 109 | 94 |
| CCC (Days) | 159 | 248 | 202 |
Working capital getting tight, but no real stress. Still a gold standard in niche manufacturing ratios.
10. P&L Breakdown – Show Me the Money
| Item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Sales (₹ Cr) | 65 | 100 | 137 | 133 | 200 |
| Operating Profit | 15 | 25 | 36 | 40 | 54 |
| Net Profit | 9 | 18 | 25 | 26 | 37 |
| EPS (₹) | 2.10 | 4.09 | 5.48 | 5.66 | 8.05 |
| Dividend/share (₹) | 0.12 | 0.25 | 0.27 | 0.45 | 1.00 |
Clean P&L, no “Other Income gymnastics” or EBITDA magic tricks.
11. Peer Comparison
| Company | CMP | P/E | ROCE | OPM % | Debt/Equity |
|---|---|---|---|---|---|
| Graphite India | ₹562 | 24 | 10% | 9.9% | Low |
| Vesuvius India | ₹517 | 41 | 25% | 17.7% | Low |
| IFGL Refractories | ₹565 | 47 | 5.7% | 7.8% | Low |
| RPEL | ₹688 | 85 | 26% | 27% | Very Low |
RPEL beats peers on margins and return metrics. Only drag? That sky-high P/E.
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 62.91% (Down from 69.6% in 2022)
- Public Holding: 36.96%
- Number of Shareholders: 14,151
- Corporate Governance: Clean audit, regular dividend, proactive expansions
- Board Drama? None. Quiet like a silica factory at night.
13. EduInvesting Verdict™
RPEL is what happens when a tiny industrial compound gets brand power, patents, and profitability — and doesn’t forget how to use them. It’s no Tata Steel, but it doesn’t want to be. With a niche monopoly, IP moat, and quartz-pure margins, it’s one of the cleanest mid-cap plays in India’s B2B industrial basket.
But yes — it’s expensive. And if steel slows, so might they.
Watch it like a hawk. Or like a foundry supervisor near a 1600°C furnace.
Metadata
– Written by EduInvesting | July 13, 2025
– Tags: RPEL, Refractories, Industrial Niche, Quartz, Patents, Midcap Multibagger, Manufacturing Stocks
