Synopsis:
Refex Industries Ltd surged 8% after securing a ₹300 Crore Jharkhand mining contract for OB removal, coal excavation, and transportation, spanning 8 months with a possible 4-year extension.
The shares of Small-Cap Company, specializing in eco-friendly refrigerant gases, coal and ash management, renewable energy projects, and clean mobility solutions, jumped upto 8 percent after receiving a Rs. 300 crore order from a large mining entity in Jharkhand.
With a market capitalization of Rs. 4,705.17 Crores on Friday, the shares of Refex Industries Ltd jumped upto 7.5 percent, reaching a high of Rs. 377.30 compared to its previous closing price of Rs. 350.75.
What Happened
Refex Industries Ltd, engaged in eco-friendly refrigerant gases, coal and ash management, renewable energy projects, and clean mobility solutions, has received a work order from a large mining entity in Jharkhand.
The order is for the removal of overburden (OB), excavation, and transportation of coal. The contract is domestic in nature, with a scope that includes excavation and transportation activities. The order is valued at approximately Rs. 300 Crore and is scheduled to be executed over a period of 8 months, with a possible extension of up to 4 years.
Financials & Others
The company’s revenue declined by 35.15 percent from Rs. 591 crore to Rs. 383 crore in Q1FY25-26. Meanwhile, Net profit declined from Rs. 29 crores to Rs. 20 crores during the same period.
The company shows a strong return on capital employed (ROCE) of 20.9% and a return on equity (ROE) of 18.9%, indicating good profitability. Its debt-to-equity ratio is low at 0.24, reflecting a conservative approach to borrowing. The stock’s price-to-earnings (P/E) ratio is 33.0, which is much lower than the industry average of 68.6, suggesting the stock may be undervalued compared to its peers.
In Q1 FY26, the company’s revenue was led by Ash & Coal Handling at Rs. 347.08 crore, followed by Green Mobility with Rs. 17.24 crore, Refrigerant Gas at Rs. 14.15 crore, Solar Power at Rs. 2.73 crore, Others at Rs. 1.30 crore, Wind at Rs. 0.76 crore, and Power Trading at Rs. 0.61 crore.
Refex Industries Limited specializes in trading eco-friendly refrigerant gases and providing comprehensive solutions for responsible coal procurement and ash disposal.
The company has expanded into electric mobility through its subsidiary, Refex Green Mobility Limited, offering EV services for passenger and corporate transportation. Additionally, its subsidiary Venwind Refex Power Limited focuses on wind energy manufacturing. Committed to innovation and environmental responsibility, Refex is driving India’s transition toward a greener, more sustainable future.
Refex Industries handles 70,000 MT of ash and coal daily and has a refrigerant gases production capacity of 3,000 MTPA. Its zero-tailpipe emission fleet in Refrigerant Gases Mobility Limited (RGML) has abated over 31 lakh kilograms of CO2, highlighting its strong commitment to sustainability.
Written by Sridhar J
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