Choice Institutional Equities's report on Monolithisch India
We remain constructive on MONOLITH, owing to a) Resilient structural demand for non-substitutable ramming mass supported by India's rising induction furnace steel production (India's crude steel output targeted to increase from ~168 MnT to ~255 MnT by FY31); b) A strategic Purulia manufacturing base, providing a freight cost advantage of ~INR 800–1,200/t in Eastern India; c) Capacity expansion from ~2.1 lakh to ~5.75 lakh MTPA, supporting ~42% volume CAGR through FY29E and improved operating leverage; d) The Metalurgica unit commissioning in September 2026, providing an incremental growth catalyst and e) Management continues to target FY27 revenue of ~INR 2.5 Bn and guided EBITDA margin of 22–25%.
Outlook
We maintain our ‘BUY’ rating on MONOLITH with a revised TP to INR 1,060, reflecting an earnings upgrade of 16.9% in FY27E and 10.0% in FY28E, backed by focus on higher revenue share from SGB- Limited to 65% from 50% in Q1FY27 and increased realisation.
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Monolithisch India - 2707026 - choice