Multibagger Penny Stock: The stock market investing is often seen as a journey of patience and strategy. Those who can spot potential in companies early on and hold onto their investments tend to be rewarded the most. Unlike the quick profits from short-term trading, long-term investors understand the value of sticking with companies that demonstrate strong fundamentals, growth prospects, and industry leadership.
In this context, Refex Industries is a stock that has rewarded its long-term shareholders with phenomenal returns by maintaining a steady upward trajectory year after year.
The company is one of India’s leading business organisations, operating across multiple sectors, including refrigerant gases, ash and coal handling, green mobility, and power trading.
It is a specialist manufacturer and refiller of refrigerant gases in India, particularly environmentally acceptable gases that serve as replacements for chlorofluorocarbons (CFCs). These gases are primarily used as refrigerants, foam-blowing agents, and aerosol propellants.
Additionally, the company provides services for handling and disposing of fly ash, crushing uncrushed coal, and trading coal to power plants. In 2022, the company expanded into electricity supply and related services, catering to power users, producers, state electricity boards, and distribution companies.
Wealth creation machine
The stock has consistently delivered strong gains year after year, making it one of the standout performers in the Indian stock market. In 2019, the stock surged by an impressive 170%, followed by an 88% gain in 2020, despite the global economic challenges posed by the pandemic.
The momentum continued into 2021, with a 44% rise, and nearly doubled in 2022 with a 96.57% gain. In 2023, the stock further solidified its upward trajectory with a 116.13% increase, followed by another 300% gain in the previous calendar year. Overall, the stock has delivered a whopping return of 11,700% in the last six years, rising from ₹4 to the current trading price of ₹472.
If an investor had invested ₹1 lakh in the shares six years ago and remained invested until today, their wealth would have grown to a staggering ₹1.17 crore, highlighting the potential of the stock market to multiply wealth when the right investments are made.
Robust performance in Q3
For the quarter ended December (Q3FY25), the company reported a consolidated net profit of ₹50.05 crore, marking a 161% increase from the ₹16.79 crore net profit recorded in the same period last year. Revenue from operations stood at ₹741.92 crore, compared to ₹309.17 crore in Q3 FY24.
The revenue from the Ash & Coal Handling segment, which accounts for 90% of the company’s revenues, stood at ₹683 crore, while revenue from Refrigerant Gas, Power Trading, and Green Mobility came in at ₹10.44 crore, ₹11.77 crore, and ₹8.88 crore, respectively.
During the quarter, the company’s subsidiary, Refex Green Mobility Limited, entered into a strategic agreement with Gensol Engineering Limited to acquire 2,997 e-cars from Gensol. Refex Green Mobility plans to lease these vehicles to Blu-Smart Mobility Limited, a leading electric mobility platform, as per the company’s regulatory filing.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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