✨ At a Glance

Refex Industries has evolved from an obscure refrigerant trader into India’s largest organized player in ash handling and coal logistics. With revenue hitting ₹2,430 Cr in FY25, net profit up 88% YoY, and a sneaky little green mobility vertical thrown in for spice, Refex is now a curious cocktail of commodity, infra, and ESG bait. But does it deserve its 30x P/E?

1. Introduction with Hook

Once upon a time, Refex was just trying to cool things down with eco-friendly refrigerants. Now? They’re knee-deep in hot ash — literally. In 2024, ~93% of Refex’s revenue came from ash and coal logistics. Who knew hauling burnt leftovers from power plants could make you rich?

So yes, Refex is the guy who shows up at the party with a dump truck and leaves with cash. Let’s unpack this industrial glow-up.

2. WTF Do They Even Do? (Business Model)

Core Verticals:

• 🚧 Ash & Coal Handling (93% of FY25 Revenue)
  • Contracts from NTPC, state power units, Adani, Ultratech Cement, etc.
  • Handles ~50,000 MT of ash daily across 19 power plants in 6 states
• ❄️ Refrigerant Gases (Legacy)
  • Once the core business
  • Now just a token eco-friendly badge
• 🌜 Refex Green Mobility (EV)
  • B2B/B2B2C EV leasing
  • Recently scrapped airport taxi plans, now pivoting to large fleet contracts
• 💪 Renewable Energy (Venwind Refex Power Ltd)
  • 153.7 MW wind order bagged recently
  • Setting up as a new growth vertical

3. Financials Overview – Profit, Margins, ROE, Growth

Profit Growth:

• 5Y PAT CAGR: ∼39%
• FY25 PAT: ₹189 Cr (vs ₹101 Cr FY24)

Revenue:

• FY25: ₹2,430 Cr (up from ₹1,371 Cr in FY24)
• 3Y Sales CAGR: 76%

Margins:

• OPM: 8-13% quarterly range
• FY25 OPM: ∼9% (down from FY22 peak of 14%)

ROE/ROCE:

• FY25 ROE: 22%
• FY25 ROCE: 25.3%

EPS Growth:

• FY25 EPS: ₹14.66 vs ₹8.73 in FY24

Stock Performance:

• 3Y CAGR: 169%
• CMP: ₹439

4. Valuation – Is It Cheap, Meh, or Crack?

Current P/E: 30x TTM

Book Value: ₹96.8; P/B: 4.5x

Peer Check:

• Linde India trades at 126x (because oxygen is hot)
• Ell. Industrial Gas at 98x
• Refex at 30x looks… meh

Fair Value Range: ₹300–450

• At 20x FY25 EPS = ₹290
• At 30x FY25 EPS = ₹439
• Market already pricing in future growth and green energy optionality

5. What’s Cooking – News, Triggers, Drama

• 🌌 Venwind Refex wind energy arm got 153.7 MW order
• 🏦 Green Mobility pivoting to fleet B2B leasing
• 📄 Rs 29.31 Cr tax demand in Mar 2025 (some F&O-style drama)
• 🪨 Increasing PSU exposure – long-term visibility but political risk

6. Balance Sheet – How Much Debt, How Many Dreams?

• Debt: ₹158 Cr (vs ₹161 Cr FY24)
• Equity: ₹26 Cr
• Reserves: ₹1,224 Cr (up from ₹450 Cr FY24)
• Comfortable leverage, especially with wind energy capex underway

7. Cash Flow – Sab Number Game Hai

• FY25 CFO: ₹-262 Cr (cash guzzler!)
• FY25 FCF: Negative
• High receivables cycle (101 days vs 55 in FY23)
• Working capital expansion dragging real cash earnings

8. Ratios – Sexy or Stressy?

Verdict: Sexy enough for a PSU-facing infra stock, but debtor days are turning stressy.

9. P&L Breakdown – Show Me the Money

10. Peer Comparison – Who Else in the Game?

Refex is way cheaper than its gas peers but also lower on margin class. Ash doesn’t shine like oxygen.

11. Miscellaneous – Shareholding, Promoters

• Promoters: 53.37% (up from 50% in FY22)
• FIIs: 2%
• DIIs: 0.11%
• Public: 44.5%
• No. of shareholders: 81,739 (crowd increasing every quarter)

12. EduInvesting Verdict™

Refex is the ash king. Its rise from refrigerants to power-plant residue logistics is as unexpected as it is profitable. Financials are strong, margins stable-ish, and green ventures bring optionality. But rising debtor days, negative cash flow, and lofty valuation multiples mean you might want to keep a fire extinguisher handy. Or a wind turbine.

Fair Value Range: ₹300–450 – you’re not early, but the ride isn’t over yet.

✍️ Written by Prashant | 📅 July 6, 2025

Tags: Refex Industries, ash handling, EV mobility, Venwind, green energy, coal logistics, Refex Green Mobility, SME to midcap, EduInvesting analysis