Despite sluggish markets this ramming mass producer shot up by 6%; do you own it?

Raghav Productivity Enhancer Limited (RPEL) is buzzing on the bourses. 

The stock began trading at Rs 645 and rose as high as Rs 689 today, a gain of 6% despite the lacklustre market. The stock has a 52-week high of Rs 834.90 and a low of Rs 434. The present market value of the firm is Rs 731 crore. 

Tundish boards, powder, and ramming material all made from quartz are produced by RPEL. The Raghav brand is used for advertising and distribution. For example, RPEL supplies ramming mass, silica ramming mixtures, quartz, etc. to some of the biggest names in the steel industry as R.L. Steel, Mahalakshmi TMT, and Varsana SPA. The company's reach extends to 26 other nations outside India. 

Revenue from exports increased from 27% of overall revenues in FY21 to 41% in FY22. The manufacturing facility is at Nevai, Rajasthan. The overall output of the facility is at 1,80,000 Mtpa. Next to their present plant in the Tonk District of Rajasthan is Raghav Productivity Solutions Private Limited, a wholly-owned subsidiary that would be utilised to expand the company's ramming mass production capacity by 108,000 TPA. A total of Rs 40 crore will be spent on capital expenses. 

RPEL's significant working capital demands originate from the capital-intensive nature of the company's operations. The success of the business depends on having access to a large supply of work-in-progress and completed items, as well as a liberal lending policy. The firm issued 6,000,000 Unsecured Compulsory Convertible Debentures (CCDs) having a face value of Rs 515, for a total of Rs 31 crore, in the second quarter of fiscal year 22 (Q2FY22). 

The company's annual revenues over the last 12 months are Rs 114 crore. Over the previous three years, the company has grown at a CAGR of 21%. Both the operational margin at 23.6% and the net profit margin at 17.7% are positive indicators for the company's financial health. Sales in the first quarter of FY23 were excellent. The rise in sales was significant, at 61% QoQ (or Rs 33 crore). There is a positive operating cash flow for the business. The company's activities brought in Rs 8 crore in FY22.