RHI MAGNESITA INDIA LTD.
NSE: RHIMRHI MAGNESITA INDIA LTD.: A 30-second snapshot
RHI Magnesita India (RHIM) is a refractory materials manufacturer trading at ₹388.3, roughly 12.7% below its 200-DMA and 27.4% off the 52-week high. The trailing PE of 46.9 compresses to a forward PE of 22.7, against a backdrop of debt-to-equity at 10.3 with a rising trend and a net profit margin of 4.28%. Quality and consistency scores (44 and 27 respectively) rank the stock 4th of 6 in the Infrastructure peer group on quality.
P/E
46.9
Forward P/E
22.7
ROE
—
Debt / Equity
10.31
Profit Margin
+4.3%
Div. Yield
+0.6%
5Y ROE > 15%
1/5
5Y FCF > 0
3/5
Quality
42/100
News
7 headlines · 1 positive · 0 negative
RHI Magnesita Q1 EBIT, Adj. EBITA Rises On Cost Cuts, Despite Weak Demand; Backs FY26 Guidance - RTTNews
RTTNews
RHI Magnesita Q1 Earnings Call Highlights - MarketBeat
MarketBeat
Number of shareholders of RHI Magnesita India Limited – NSE:RHIM - TradingView
TradingView
3 UK Stocks Estimated To Be Trading At Discounts Up To 48.8% - simplywall.st
simplywall.st
UK Stock Market Today: FTSE 100 Drops Over 1%, FTSE 250 & FTSE 350 Slip as Middle East Tensions Intensify and Oil Price Volatility Rises - What Investors Should Watch - Dailyhunt
Dailyhunt
Recent context
- ·Q1 results reported EBIT and adjusted EBITA rising on cost cuts despite weak demand; full-year FY26 guidance was maintained by management (April 29, 2026).
- ·News flow is predominantly neutral (6 of 7 articles); only 1 article was classified positive, and several items relate to the UK-listed parent rather than the NSE-listed India entity specifically.
- ·A simplywall.st article (May 12, 2026) listed RHI Magnesita among UK stocks estimated to be trading at a discount, suggesting the valuation discount narrative extends to the parent company.
Strengths
- +5-year earnings CAGR of 30% is materially higher than the 5-year revenue CAGR of 8%, indicating expanding margins over the period despite recent compression.
- +Trading at a trailing PE of 46.9 compared to Infrastructure peers ABB India (86.8) and CGPOWER (108.5), RHIM sits at the lower end of sector multiples — 2nd lowest of 6 ranked peers.
- +Forward PE of 22.7 (vs trailing 46.9) reflects analyst expectations of significant near-term earnings growth, with only 3 analysts providing coverage on a 1–5 scale.
- +Revenue has grown at an 8% 5-year CAGR in a cyclical, capital-intensive industry, and the stock pays a dividend yield of 0.64%.
Weaknesses
- −Debt-to-equity of 10.3 is substantially elevated and trending higher; combined with a net profit margin of just 4.28%, the company has limited buffer to absorb revenue or margin shocks.
- −ROE exceeded 15% in only 1 of 5 available years, and FCF was positive in only 3 of 5 years — the consistency score of 27/100 reflects an irregular and low-quality earnings track record.
- −Price is 13.45% lower than 12 months ago and 17.21% lower over 3 months; the stock has remained below the 200-DMA and is 27.41% off the 52-week high, with RSI at 43.9 (neutral).
- −Quality score of 44 ranks 4th out of 6 Infrastructure peers; closest support levels at ₹361.9 and ₹323.05 are 6.8% and 16.8% below current price respectively.
Open questions
- ?Does the rising debt-to-equity trend reflect a deliberate capacity-expansion cycle, or is leverage increasing without a commensurate increase in productive assets?
- ?How durable is the 5-year earnings CAGR of 30% if the underlying demand environment described in Q1 results remains weak — is cost-cutting a sustainable earnings driver?
- ?The forward PE of 22.7 implies a near-doubling of trailing earnings; what are the specific revenue or margin assumptions underpinning that consensus, and have those assumptions changed since Q1?
- ?Given that RHIM is a listed subsidiary of a UK-domiciled parent, what proportion of India operations are conducted on arms-length terms, and how does related-party exposure affect reported margins?
Peer comparison: Infrastructure
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| RHIM | RHI MAGNESITA INDIA LTD.You're viewing | 46.9 | — | 44 |
| Industry avg | across 5 peers | 69.4 | +18.3% | 40 |
| BEL | Bharat Electronics Ltd. | 51.9 | — | 57 |
| ABB | ABB India Ltd. | 86.8 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 108.5 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.4 | +16.9% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.5 | — | 24 |
Technical state
Current price
₹388.30
SMA 50
₹387.78
SMA 200
₹444.50
RSI (14)
43.9 (neutral)
From 52w high
-27.4%
1Y return
-13.4%
3M return
-17.2%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 10.3 is substantially elevated and the debt trend is marked rising; this combines with a thin net profit margin of 4.28% to create a high-leverage, low-buffer profile.
- highROE data is unavailable; ROE exceeded 15% in only 1 of 5 available years, FCF was positive in 3 of 5 years, and the consistency score is 27/100 — indicating weak and irregular earnings quality.
- mediumPrice at ₹388.3 is 12.7% below the 200-DMA (₹444.5) and the stock is down 13.45% over 12 months and 17.21% over 3 months, with a 27.41% drawdown from the 52-week high.
- lowNews sample is sparse (7 articles total, only 1 positive); coverage is primarily neutral and includes articles about the parent RHI Magnesita (UK-listed), limiting India-specific signal quality.
Cross-section contradictions
- Forward PE of 22.7 compresses sharply from trailing PE of 46.9, implying a near-doubling of earnings is priced in; however FCF was positive in only 3 of 5 years and ROE exceeded 15% in just 1 of 5 years, making the earnings acceleration basis uncertain.
- 5-year earnings CAGR of 30% is high, yet the consistency score of 27/100 and debt-to-equity of 10.3 with a rising debt trend suggest this growth has been accompanied by deteriorating balance-sheet quality rather than compounding returns.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days