Orient Refractories Ltd Initiating Coverage Research Report By IndiaNivesh

ORL’s strong manufacturing capabilities resulted in almost doubling the net profit over last 5 years. One of the key drivers for significant increase in revenue was cross‐selling between ORL, RHI India and RHI Clasil clients. Additionally, the parent’s umbrella offerings and go‐to‐market strategy led to entry into Tier‐I steel manufacturers. The company has been able to consistently enjoy above industry level margins (last 4 Yr. 17.9% v/s Avg. Industry 14%) on back of product innovation and client mix. We believe under RHI AG APAC vision, ORL will be able to achieve parent’s target of 100 mn Euro’s (~Rs 7,631 mn| ~20% CAGR) before FY20.