Raghav Productivity Enhancers: furnace, not steel prices

Raghav Productivity Enhancers Limited (NSE: RAGHAVPRO) grew Q1 FY27 revenue 48.7% to ₹86.9 crore and net profit 67.6% to ₹19.6 crore. Over the last ten years, revenue CAGR is 32% and profit CAGR is 45%. What happened The company makes ramming mass, the refractory lining inside induction furnaces that contains molten steel. Every cycle wears it out. More steel melted means more frequent replacement. Revenue per tonne is ₹8,500 to ₹10,500 versus ₹4,500 to ₹6,500 for standard mass. EBITDA per tonne rose from ₹1,245 in FY17 to ₹2,650 in Q1 FY27. Market share grew from 3.5% to 14% and capacity from 36,000 to 414,000 tonnes over ten years. Expansion to 534,000 tonnes is due by October 2026. Why it matters India's crude steel production rose to 168 million tonnes in FY26, up 10.5%, with a government target of 500 million tonnes by 2047. As output rises, ramming mass consumption rises with it, independent of where steel prices go. An 80:20 JV with TRL Krosaki, a Nippon Steel subsidiary, will build a 350,000 MTPA plant in Odisha. My view Volume, price and market share are all moving in the same direction here. Standard ramming mass competes on price. Raghav charges a premium because its lining lasts 25% to 35% longer per heat, reducing furnace downtime. That is a productivity argument, not a commodity one. The risk is valuation. A 10-year profit CAGR of 45% commands a significant premium. What I am watching Q2 FY27 results, new capacity commissioning on schedule, and EBITDA per tonne holding above ₹2,500. On the chart, ₹1,000 is the support area. My stance: Accumulate near ₹1,000. A volume play that also has pricing power. Disclosure: I do not hold a position in Raghav Productivity Enhancers Limited at the time of writing. This is not investment advice.