Stock jumps 8% after company forms JV to set up refractory brick plant for ₹300 Cr - Trade Brains

by Trade Brains | Oct 10, 2024 | 4:27 pm | Analysis, News, Stock Updates | 0 comments

Shares of a small-cap company, that manufactures refractories and requisite operating systems rose nearly 8% after the company signed an agreement to establish a manufacturing facility for refractory bricks with a capital outlay of approximately Rs. 300 crores.

With a market capitalization of Rs. 2,220.02 crores, IFGL Refractories Limited surged to an intraday high of Rs. 627.70, marking a 7.8% increase from its previous close of Rs. 582.00 per share.

According to exchange filings, IFGL Refractories Limited has entered into a joint venture agreement between Marvels International Group Co. Ltd., Seychelles, and Marvel Refractories Company Limited, China.

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The agreement is to establish a manufacturing facility with a capital outlay of approximately Rs. 300 crores to produce Basic Fired Magnesite Spinel Bricks, Basic Fired Magnesite Bricks, and Fired Magnesia Chrome Bricks, which are used in the cement, glass, non-ferrous, and gasification industries.

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In September, IFGL Refractories Limited acquired 16.40 acres of land in Odisha for the development of new manufacturing facilities. Additionally, in July, the company inaugurated a new plant at its Visakhapatnam manufacturing facility to produce refractory bricks, with a production capacity of 9,000 MT per annum, expected to generate revenue of Rs. 100 crores.

In May, the company operationalized a Casting Flux Plant with a production capacity of 18,000 MT per annum for granules and is expected to generate revenue of about Rs. 80 crores at full capacity.

For Q1FY25 the company reported a net profit decrease of 16.75% to Rs. 24.65 crore compared to Rs. 29.61 crore in Q1FY24, while revenue from operations marked a decrease of 2.10% to Rs. 414.54 crore from Rs. 423.85 crore in comparison to the same period.

Incorporated in 1989, IFGL Refractories Limited is a manufacturer and trader of specialized refractory items for iron and steel producers. The company also provides services related to refractory goods and operates subsidiaries in China, Germany, India, the UK, and the USA. As of August, the company has 10 strategically located manufacturing units across Asia, Europe, and North America, serving over 50 countries worldwide.

Written By: Joseph Pv

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