New Dark Horse Stock Idea -: Completely debt free | Specialised Refractories
NEW DARKHORSESTOCKS IDEA
Current Price-: 290 Rs
Company -: https://www.darkhorsestocks.in/new_idea.html
About-: This is a completely debt-free leading manufacturer of specialised flow control refractories, including isostatic, sliding gate, and continuous casting refractories used in primary and secondary steel production.
IFGL Refractories has a significant presence in worldwide markets through its wholly owned subsidiaries, which principally serve markets in the EU, the Middle East, Asia, and the United States. The company operates in 60 markets throughout the world. With the inauguration of its third plant in Vizag, it has expanded its footprint in South India. Its Kalunga and Kandla capacities are utilised at more than 70% of their capacity on a combined basis. The company holds a 7% share of the domestic market as of FY21.
Sectorial Outlook
Steel accounts for 5% of refractory demand, and a rebound in steel demand following the epidemic is already seen, with a 28% increase in steel output in 1HFY22. This trend is projected to continue due to increased government expenditure on programmes such as national infrastructure projects, PLI schemes, Jal Jeevan Mission, housing schemes, and so on. New steel capacity worth 38 million tonnes over the next four years will also increase demand for refractories. Strong export demand for Indian steel as a result of China’s output limits would drive refractory demand even more.
With a positive prognosis for steel demand from end-user sectors, steel makers have unveiled a capacity development plan that includes more than 35 million tonnes of additional steel capacity over the next 3.5 years. This equates to a 35% increase in steel capacity in India, which will almost certainly translate into additional demand for refractories. We think that, in addition to replacement demand and demand from increased utilisation at existing plants, additional capacity will result in significant volume growth for refractory producers.