Buy Vesuvius India; target of Rs 1935: ICICI Direct

ICICI Direct's research report on Vesuvius India

Vesuvius India (VIL) is a subsidiary of the Vesuvius Group, UK. It is a leading metal flow engineering company. The company supplies high performance refractory material to the steel industry and other process industries used for lining vessels such as blast furnaces, ladles and tundishes to enable them to withstand high temperatures and/or corrosive attack. Shaped refractories account for ~37% of revenue in CY21 followed by unshaped refractories (~41%) and services (~ 22%) • It holds ~11% market share in the Indian refractories industry.

Outlook

We remain long term positive and retain our BUY rating on the stock. We value VIL at Rs 1935 i.e. 26x on average CY23E & CY24E EPS.