Broker’s call: Vesuvius India (Buy)
Keynote Capitals
Vesuvius India Ltd, a key player in the refractory industry and part of the Vesuvius plc Group, specializes in flow control solutions, advanced refractories, and comprehensive refractory management services for various high-temperature industries such as steel, foundry, aluminium, and cement. The India refractory market is projected to experience a compound annual growth rate (CAGR) of around 9.9% from 2026 to 2033, driven by the steel sector's demand for the company's products.
As an early entrant in localizing flow control manufacturing in India, Vesuvius India maintains a strong product portfolio and technical service network, giving it a dominant position in the domestic market, where it holds approximately 50-55% market share. The company anticipates a growth rate of about 12% CAGR for its revenue from the current fiscal year to CY28E, fueled by the sustained growth of the steel industry and the consequent surge in demand for refractory and flow control products.
Vesuvius India's service-led model, offering total refractory solutions, is anticipated to foster recurring revenue through maintenance and related services. Moreover, the expansion of new capacities is expected to restore and enhance margins. Based on these factors, the analyst initiates coverage on Vesuvius India with a Buy rating, assigning a 30x CY28E P/E multiple to the company.
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