Broker’s call: Vesuvius India (Buy)

Vesuvius India Ltd, part of the Vesuvius plc Group, is one of the leading players in the refractory industry. The Company provides flow control solutions, advanced refractories and comprehensive refractory management services to the steel, foundry, aluminium, cement and other high temperature industries, with a considerable contribution from the steel sector. The India refractory market revenue is expected to grow at a CAGR of about 9.9 per cent from 2026 to 2033.

As an early mover in localising flow control manufacturing in India, the company has built a strong product portfolio and technical service network, supporting its leadership position in the domestic market, where it holds about 50-55 per cent market share.

We expect VIL’s revenue to grow at about 12 per cent CAGR over CY25-CY28E, supported by sustained growth in the steel industry and the resulting increase in demand for refractory and flow control products. The company’s service led model and provision of total refractory solutions are expected to support recurring revenue through maintenance and related services.

In addition, the ramp up of new capacities is expected to support the normalisation and improvement of margins. Keeping in view these factors, we initiate coverage on Vesuvius India with a Buy rating, valuing the company at 30x CY28E P/E multiple.

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.