Materials / NSEI:IFGLEXPOR

₹3.5b
IFGL
Refractories 2020/05/16 22:46 UTC

Company Financials + 1 Analyst

Executive Summary
Trading at 70.2% below its fair value
IFGL Refractories Limited engages in the
manufacture, trade, and sale of refractory items
used in steel plants in India and internationally. Earnings are forecast to grow 21.62% per
year

Unstable dividend track record

Highly volatile share price over past 3

months

Large one-off items impacting financial

results
Very undervalued with flawless balance sheet.
Does not have a meaningful market cap
(₹3B)
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Share Price & News

How has IFGL Refractories's share price performed over time and what events caused price changes?

Latest Share Price and

Events

Stable Share Price: IFGLEXPOR's share price has been volatile over
the past 3 months.
 Market Performance

7 Day Return Return vs Industry: IFGLEXPOR underperformed the Indian Basic

Materials industry which returned -21.8% over the past year.
-5.1% 5.7% -0.06%
Return vs Market: IFGLEXPOR underperformed the Indian Market
IFGLEXPOR IN Basic Materials IN Market
which returned -19.4% over the past year.

1 Year Return

-56.3% -21.8% -19.3%

IFGLEXPOR IN Basic Materials IN Market

Price Volatility Vs. Market

Shareholder returns How volatile is IFGL Refractories's share price compared to the market
and industry in the last 5 years?
IFGLEXPOR Industry Market

7 Day -5.1% 5.7% -0.06%

30 Day -1.8% 1.1% 1.1%

90 Day -39.9% -22.5% -23.4%

1 Year -56.3% -21.8% -19.3%

3 Year n/a -26.3% -17.0%

5 Year n/a 5.8% -5.0%

Include Dividend Returns

Simply Wall St
News
2 months ago | Simply Wall St 2 months ago | Simply Wall St 3 months ago | Simply Wall St

How Does IFGL Refractories's Shareholders Should Look Hard At IFGL IFGL Refractories Limited
(NSE:IFGLEXPOR) P/E Compare To Its Refractories Limited’s (NSE:IFGLEXPOR) (NSE:IFGLEXPOR) Goes Ex-Dividend In 3
Industry, After The Share Price Drop? 8.6%Return On Capital Days

Valuation
 Valuation
Is IFGL Refractories undervalued compared to its fair value and its price relative to the market?

>50%
Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: IFGLEXPOR (₹95.9) is trading below our estimate

of fair value (₹321.85)

Significantly Below Fair Value: IFGLEXPOR is trading below fair

value by more than 20%.

Price To Earnings
Ratio

PE vs Industry: IFGLEXPOR is good value based on its PE Ratio

(7.4x) compared to the Basic Materials industry average (11.2x).

PE vs Market: IFGLEXPOR is good value based on its PE Ratio (7.4x)

compared to the Indian market (10.1x).

Price to Earnings Growth Ratio

PEG Ratio: IFGLEXPOR is good value based on its PEG Ratio (0.3x)
 Price to Book Ratio

PB vs Industry: IFGLEXPOR is good value based on its PB Ratio

(0.4x) compared to the IN Basic Materials industry average (0.6x).

Next Steps

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Future Growth
How is IFGL Refractories forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

21.6%
Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: IFGLEXPOR's forecast earnings growth

(21.6% per year) is above the savings rate (6.5%).

Earnings vs Market: IFGLEXPOR's earnings (21.6% per year) are

forecast to grow faster than the Indian market (16.5% per year).

High Growth Earnings: earnings are expected to grow significantly

over the next 3 years.

Revenue vs Market: IFGLEXPOR's revenue (12.3% per year) is

forecast to grow faster than the Indian market (7.4% per year).

High Growth Revenue: IFGLEXPOR's revenue (12.3% per year) is

forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if IFGLEXPOR's

Return on Equity is forecast to be high in 3 years time
 Next Steps

Explore growth companies in the Materials industry.

Past Performance
How has IFGL Refractories performed over the past 5 years?

24.5%
Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IFGLEXPOR has a large one-off loss of ₹251.7M

impacting its December 31 2019 financial results.

Growing Profit Margin: IFGLEXPOR's current net profit margins (5%)

are lower than last year (6.2%).

Past Earnings Growth

Analysis

Earnings Trend: IFGLEXPOR's earnings have grown significantly by

24.5% per year over the past 5 years.

Accelerating Growth: IFGLEXPOR's has had negative earnings

 growth over the past year, so it can't be compared to its 5-year
average.

Earnings vs Industry: IFGLEXPOR had negative earnings growth (-

18.9%) over the past year, making it difficult to compare to the
Basic Materials industry average (24%).

Return on Equity

High ROE: IFGLEXPOR's Return on Equity (5.8%) is considered low.

Next Steps

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Financial Health
How is IFGL Refractories's financial position?

Financial Position
Analysis
 Short Term Liabilities: IFGLEXPOR's short term assets (₹5.6B)
exceed its short term liabilities (₹1.9B).

Long Term Liabilities: IFGLEXPOR's short term assets (₹5.6B)

exceed its long term liabilities (₹372.6M).

Debt to Equity History and

Analysis

Debt Level: IFGLEXPOR's debt to equity ratio (10.2%) is considered

satisfactory.

Reducing Debt: IFGLEXPOR's debt to equity ratio has reduced from

163.2% to 10.2% over the past 5 years.

Debt Coverage: IFGLEXPOR's debt is well covered by

operating cash flow (133.4%).

Interest Coverage: IFGLEXPOR's interest payments on its debt are

well covered by EBIT (34.1x coverage).

Balance Sheet
 Next Steps

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Dividend
What is IFGL Refractories's current dividend yield, its reliability and sustainability?

5.21%
Current Dividend Yield

Dividend Yield vs
Market

Notable Dividend: IFGLEXPOR's dividend (5.21%) is higher than the

bottom 25% of dividend payers in the Indian market (0.86%).

High Dividend: IFGLEXPOR's dividend (5.21%) is in the top 25% of

dividend payers in the Indian market (3.6%)

Stability and Growth of

Payments

Stable Dividend: Whilst dividend payments have been stable,

IFGLEXPOR has been paying a dividend for less than 10 years.

Growing Dividend: IFGLEXPOR's dividend payments have increased,

but the company has only paid a dividend for 2 years.
 Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.4%), IFGLEXPOR's

dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a

dividend will be paid in 3 years and that it will be covered by
earnings.

Next Steps

Explore strong dividend paying companies in theMaterials industry.

Management
How experienced are the management team and are they aligned to shareholders interests?

2.8yrs
Average board tenure
 CEO

Kamal Sarda (56yo)

No Data ₹10,247,000
Tenure Compensation

Mr. Kamal Sarda serves as Chief Executive Officer at IFGL Refractories Limited and has been Whole-Time Director since April 1, 2012. He was
Show
Chief Financial Officer of IFGL Refractories Limited since Octobe ... more

CEO Compensation
Analysis

Compensation vs Market: Kamal's total compensation

($USD135.08K) is above average for companies of similar size in
the Indian market ($USD47.66K).

Compensation vs Earnings: Kamal's compensation has been

consistent with company performance over the past year.

Board Members

Name Position Tenure Compensation Ownership

Experienced Board: IFGLEXPOR's board of directors are not
Executive 2.75yrs ₹21.42m 5.11% considered experienced ( 2.8 years average tenure), which
Shishir Chairman ₹176.6m suggests a new board.
Bajoria

CEO, Chief no data ₹10.25m 0.0056%

Kamal Sarda Investor ₹191.8k
Relations Officer
& Director

Show more

2.8yrs 63yo
Average Tenure Average Age
Average Tenure Average Age

Ownership
Who are the major shareholders and have insiders been buying or selling?

Insider Trading
Volume

Insider Buying: Insufficient data to determine if insiders have

bought more shares than they have sold in the past 3 months.

Ownership
Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted

in the past year.
 Top Shareholders

Company Information
IFGL Refractories Limited's company bio, employee growth, exchange listings and data sources

Key Information

Name: IFGL Refractories Limited

Ticker: IFGLEXPOR
Exchange: NSEI
Founded: 2007
Industry: Construction Materials
Sector: Materials
Market Cap: ₹3.456b
Shares outstanding: 36.04m
Website: https://www.ifglref.com

Location

IFGL Refractories Limited

Mcleod House
3, Netaji Subhas Road
Kolkata
West Bengal
700001
India

Listings

Ticker Exchange Primary Security Security Type Country Currency Listed on

540774 BSE (Mumbai Stock Exchange) Yes Equity Shares IN INR Aug 2017

IFGLEXPOR NSEI (National Stock Exchange of India) Yes Equity Shares IN INR Aug 2017
 IFGLEXPOR NSEI (National Stock Exchange of India) Yes Equity Shares IN INR Aug 2017
Ticker Exchange Primary Security Security Type Country Currency Listed on

Biography

IFGL Refractories Limited engages in the manufacture, trade, and sale of refractory items used in steel plants in India and internationally. The
company offers isostatic and slide gate refractories, tube changer systems, and purging systems refractories; cast products and monolithics,
zircon and zircona nozzles, spray machines, robotic gunning, and slag control darts and machines; and foundry ceramics, wire guides, and
heating ovens. The company was formerly known as IFGL Exports Limited has changed its name to IFGL Refractories Limited in October 2017.
IFGL Refractories Limited was incorporated in 2007 and is headquartered in Kolkata, India. IFGL Refractories Limited is a subsidiary of Bajoria
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Financial Services Private Limited. less

Company Analysis and Financial Data

Status

Data Last Updated (UTC time)

Company Analysis 2020/05/16 22:46

End of Day Share Price 2020/05/15 00:00

Earnings 2019/12/31

Annual Earnings 2019/03/31

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve
Month (LTM) Data. Learn more here.

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