Smallcap stock in focus after winning PSU order for pond ash transport to NHAI Projects

Synopsis: Refex Industries Ltd is an industrial gas and eco-friendly refrigerant player in focus after winning a Rs. 32.89 crore PSU order for transporting pond ash to NHAI projects, enhancing its ash handling and logistics business.

The shares of this company specializes in trading eco-friendly refrigerant gases and providing comprehensive solutions for responsible coal procurement and ash disposal are in focus after securing a major PSU order for transportation of pond ash.

With market capitalization of Rs. 4,628 cr, the shares of Refex Industries Ltd are currently trading at Rs. 337.75 per share, dropping more than 3% in today’s market session making a low of Rs. 335.15, from its previous close of Rs. 346.70 per share.

About the order

Refex Industries Limited has secured an order from a major power producer (PSU) for the transportation of pond ash to NHAI road projects. The order is domestic in nature and will be executed over a period of 5 months, with a total contract value of approximately Rs. 32.89 crore. The scope of the order includes the supply and logistics for transporting pond ash to NHAI road projects. 

The company has confirmed that neither the promoter nor the promoter group has any interest in the entity awarding the contract, and the transaction is not classified as a related-party transaction. This order strengthens Refex’s presence in its ash handling and logistics business, contributing to its ongoing projects in infrastructure support and environmental services.

About the company 

Refex Industries Ltd is an Indian company that began as a manufacturer and refiller of eco-friendly refrigerant gases used in air conditioning and refrigeration systems. Over the years, it has diversified into several sectors including fly-ash and coal handling, renewable energy (solar and wind), power trading, and clean mobility through electric vehicles. 

The company has a ROCE of 20.9% and a ROE of 18.9%, with a low debt-to-equity ratio of 0.14. The company’s stock P/E stands at 26.4, which is below the industry average of 46.7, indicating relatively lower valuation compared to its peers.

On a year-on-year basis, sales remained stable at Rs. 427 crore compared to Rs. 428 crore in Q2FY25, showing a negligible decline of 0.2%. EBITDA rose sharply by 64% to Rs. 70.5 crore from Rs. 42.9 crore, while net profit increased by 16% to Rs. 36.2 crore from Rs. 31.1 crore. EPS improved by 13% to Rs. 2.90 from Rs. 2.57.

Written by Manideep Appana

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Smallcap stock in focus after winning PSU order for pond ash transport to NHAI Projects appeared first on Trade Brains.