Indian Stock Has Delivered 11,000% Returns Over the Past Decade

This impressive performance saw the stock price soar from around ₹1.37 per share a decade ago to ₹151.8 per share as of Friday.

An investment of ₹1 lakh in Refex Industries 10 years ago would now be worth more than ₹1 crore.

Refex Industries: A Brief History

Founded in 2002 as Refex Refrigerant Ltd, Refex Industries initially focused on refilling non-ozone depleting refrigerant gases, known as hydrofluorocarbons (HFCs), used in air conditioners, refrigerators, and refrigerating equipment. The company went public in July 2007, listing on the Bombay Stock Exchange (BSE), and reported a total turnover of ₹51.41 crore for the year ending March 31, 2007.

Strategic Diversification and Growth

In 2018, Refex Industries diversified into fly ash and coal handling services for thermal power plants, propelling the stock price approximately 21 times to ₹30 per share. Continuing its diversification, the small-cap company entered the power-trading business in 2022 and set up a green mobility business in 2023. These strategic expansions have significantly contributed to the company’s 11,000% return over the past decade.

Financial Performance and Operations

Refex Industries operates refilling facilities in Chennai and Tamil Nadu (NS), with additional warehouses in Delhi and Mumbai. For the March quarter of 2023-24, the company reported a total income of ₹345.7 crore, and for the full fiscal year, ₹1,388.84 crore. The company’s EBITDA for the last quarter of FY24 was ₹43.5 crore, with an EBITDA margin of 12.89%. For the entire fiscal year, the EBITDA amounted to ₹148.75 crore, achieving a margin of 10.85%. The company’s Profit After Tax (PAT) for the March quarter was ₹35.76 crore, while the full fiscal year PAT reached ₹100.95 crore, reflecting a PAT margin of 7.27%.

Promoters hold a majority stake of 55.3% in Refex Industries, with public shareholders owning the remaining 44.7%.

What’s Driving the Growth?

Refex Industries’ diversification into new business areas such as fly ash and coal handling services, power trading, and green mobility has significantly contributed to its extraordinary growth. Additionally, the company’s focus on supplying environment-friendly HFC refrigerant gases has positioned it as a leading player in this sector in India. This strategic expansion has not only boosted the company’s revenue and profitability but also enhanced its market position.

Future Prospects

Looking ahead, Refex Industries is well-positioned to continue its growth trajectory. The company’s ability to adapt and diversify its business operations has been a critical factor in its success. As it continues to explore new opportunities and expand its market presence, Refex Industries is likely to remain a strong performer in the Indian stock market.