Refex Industries Ltd has established itself as a multifaceted company with a diverse portfolio of refrigerant gases, power trading , green mobility, ash and coal handling . Since inception the company has been dedicated to refilling refrigerant gases that serve as replacements for harmful chlorofluorocarbons or CFCs and hydrochlorofluorocarbon or HCFCs .
The refrigerant gases are crucial in various applications such as air-conditioning ,refrigeration, flume blowing agents and aerosol propellant.
The company has operating refilling facilities in Chennai, Tamil Nadu. In 2018, Refex diversified into the business of ash and coal handling business, making an assessment that the market size of this industry was over Rs 25000 crores and could be a good viable business proposition.
In a short span of time, Refex has emerged as a major organised player in the ash disposable sector , actively mitigating environmental pollution caused by the generation as ash during coal combustion in thermal power plants.
Refex Industries repurposes the ash generated for the construction of roads, highways and embarkments as well as for filling mines thereby fostering sustainable infrastructure development.
Refex is today the largest organised ash handling company in the country with a major presents in power generating states of Chandigarh, Maharashtra, Madhya Pradesh, Bihar, Odisha, Tamil Nadu and Karnataka.
The company currently manages 35000 metric tonnes of ash on a daily basis with a plan to expand upto 60000 metric tonnes disposable capacity by end of FY 2025. The company has a fleet of 800 vehicles of which 39 are owned by the company. It plans to add 80 self owned vehicles by the end of March 2025.
The company posted total income for Q4 FY 24 of Rs 345 crores with EBITDA margin of 12.89% at Rs 148 crores . The quarterly profit after tax stood at Rs 35 crores resulting in improvement of profit after tax and EPS demonstrating the company’s strong bottom line performance and commitment to creating shareholder value.
The main factor contributing to the annual decrease in revenue has been a significant drop in coal prices which felt sharply by around 45% in the current year leading to a sharp decline in the top line financial numbers. Despite tough adverse market conditions, the company did proactive measures to maintain stable EBITDA margins.
The company has been able to adapt to market dynamics, optimise operational efficiency effectively with a focus on enhancing coal handling along with prudent cost management allowing it to mitigate the impact of declining coal prices.
Refex Green Mobility Ltd RGML is a holy owned subsidiary of Refex Industries Ltd having commenced operation of employee transportation by using electric vehicles in Bangalore and Chennai this year.
RGML provides a sophisticated technology platform by offering employees options to book electrical vehicles and trained drivers for pick up and drop from different locations.
The services are under the brand name Refex eEeelz and is provided to software companies, large banks and corporates who have large employees on board. Recently, RGML has also commenced operation at the Bangalore airport as a preferred airport taxi partner where it will be operating 660 electric vehicles and it hopes to start operations in Pune and Hyderabad in September this year.
While the company has currently 480 vehicles for this business, it has plans to expand the fleet up to 2000 vehicle by the end of March 2025 . Stock brokers and portfolio investors are bullish on the company and have been actively buying the Refex share at the current price of around Rs 230 from a medium term price appreciation point of view . Investors can check from their financial advisor on the fundamentals of the Refex scrip and make a decision according to their risk appetite .