Refex Industries was a successful discovery of mine in November 2022.
As on today I am enjoying a hefty 940% profit in 666 days of investment on it.
I chose it as a proxy to Air Conditioner industry. I heard Refex had a robust business
model in refrigerant industry and so I dived deep into it. But what I found was much
better.
They were not confined to Refrigerant industry,but diversified into new fields like
solar power generation, power trading and coal and coal ash handling . All these new
fields are on long term up-cycle in India . Green mobility was another vertical which
Refex has forayed into since 2018.
Each of these new fields attracted my attention. In such cases I concentrate more on
upcoming and future growth trajectory of the company than on their present earning,
profit etc. One less noticed factor for my liking the stock was no-family structure of
management.
Refrigerant business:
In 2002, the Company started as Refex Refrigerant Pvt. Ltd which established one of
India’s first ISO-certified refilling units for eco-friendly Hydro Fluoro Carbons
(HFCs) . Specializing in HFCs, Refex transformed the industry with the innovative
‘Refex Cans,’ leading the way in supplying automotive air conditioning gases in
disposable cans. With ISO 9001 and 14001 certifications, Refex expertly procured and
is procuring and filling HFC gases into cans of various size, distributing them
nationwide for multipurpose use. Diversified cans have proven to be a clever strategy
adopted by Refex resisting slippage of clients and customers.
The gases sold by Refex Industries are used in
1) food refrigeration -both commercial and domestic scale
2) Industrial refrigeration
3) Refrigeration in vehicles transporting perishable items
4) air conditioning of commercial and office building, residential building
5) automotive air conditioning
6) chillers in building and large systems
7) medical propellants such as inhaler
8) foam blowing agents
Such widely diversified usage of their refrigerants protects Refex from demand deficit.
It was one of the fire factors that drew my keen attention.
Their robust technological advancements of quality control measures in the form of
gas chromatography, moisture analysis , refrigerant analysis etc. was another
attractive factor.
Refex enjoys the first mover advantage by introducing their non-toxic , non flammable
and ozone friendly refrigerants.
At a time when refrigerant gas refilling and transport was a hassle due to cumbersome
gas cylinders, Refex introduced easy to refill and handle Refex Cans. Refex Industries
has also ventured into export of refrigerant gases.
Coal and ash handling:
Refex ensures thermal power plants have a reliable coal supply by trucking in lumpy
coal, storing it, and crushing it just before use. This efficient process saves clients’
money . Refex also provides housekeeping services to keep coal handling plants
running smoothly and cleanly. These value added services fetch Refex good revenue.
Coal ash handling business was a totally out of the box business model fro Refex.
Since 2018 Refex started fly ash handling business as an additional revenue stream .
Trucks of Refex carry coal to thermal plants on forward journey and carry back fly
ash on return journey earning revenue both way. They supply it to cement producers,
road construction companies, and even mine filling sites where too they generate
handsome revenue. A fleet of 800 trucks are engaged in this activity.
Coal ash handling business is mainly performed in Chanttichgarh, Rajasthan and
Maharasthra.
As a major player in ash disposal in Chhattisgarh, Refex serves power plants with a
combined capacity of 2,561 MW. Using a fleet of bulkers, hyvas, and rail rakes,
they\’ve handled over 10 million metric tons of fly ash.
Power Trading:
Power Trading is a promising business of Refex given the huge market of power in
India in view of her robust economic growth in coming years. Refex’s foray into this
field is well timed.
Refex is expanding its business footprint by diversifying into the electrical power
market. It now buys and sells all forms of energy, both conventional and non-
conventional. Refex serves power users, producers, state electricity boards, generating
companies, and other traders. The company also engages in the import and export of
electricity. Refex operates across all States and Union Territories in India.
Refex received the Category-I Power Trading license from the Central Electricity
Regulatory Commission (CERC) in March 2022. This 25-year license allows Refex
to trade unlimited volumes of electricity annually. Additionally, Refex has joined
Power Exchange India Limited.
Green Mobility:
Refex Green Mobility Limited (RGML), a wholly-owned subsidiary of Refex
Industries Limited, commenced Green Mobility operations in Bengaluru in March
2023. The Company provides bundled offerings that include electric vehicles, trained
and background-verified drivers, a sophisticated technology platform, and dedicated
support teams. RGML serves clients as reputed as TCS, Brady, BNP Paribas, Grant
Thorton,Move In Sync etc.
Given these robust developments it’s not surprising that I am on a hefty profit of
940% in 666 days giving an annual return on investment of 515% keeping a long term
view on Refex Industries and sticking to it.
Excellent 👍
My profit in Refex has reached 1057% today.