Incorporated in 1958, Foseco India Limited is engaged in the manufacture of products used in the metallurgical industry, specifically additives and consumables that improve the physical properties and performance of castings. The Company is the Foundry Technologies Division of Vesuvius Group Plc, a global leader in supporting the development of steel and foundry manufacturing processes with new technologies. Foseco India was initially incorporated as Greaves Foseco on March 22, 1958, as a joint venture between Greaves of India and Foseco of the UK.
The company operates as a world leader in the supply of foundry consumables and solutions, uniquely offering products and services across the entire foundry process in both ferrous and non-ferrous areas. Its manufacturing activities are located at Sanaswadi, Pune, and Puducherry.
Foseco India maintains a strong market position, evidenced by its market capitalization of ₹3,083 crore, which has seen an 11.6% increase in the last year. The company is almost debt-free, significantly strengthening its financial standing. Furthermore, it has consistently maintained a healthy dividend payout of 33.1%.
Recent financial performance demonstrates a strong growth trajectory. The net profit of Foseco India rose 36.72% to ₹21.67 crore in the quarter ended March 2025, compared to ₹15.85 crore during the previous quarter ended March 2024. Sales also showed robust growth, increasing by 21.18% to ₹148.51 crore in the quarter ended March 2025, up from ₹122.55 crore in the same period a year prior.
For the full year, net profit rose by a modest 0.07% to ₹73.03 crore in the year ended December 2024, compared to ₹72.98 crore during the previous year ended December 2023. Sales for the full year rose 9.92% to ₹524.78 crore in the year ended December 2024, as against ₹477.41 crore in the year ended December 2023.
- Market Cap: ₹3,083 crore (as of recent data)
- Revenue (TTM): ₹551 crore
- Net Profit (TTM): ₹78.8 crore
- P/E Ratio: 39.1
- ROE: 23.3%
- ROCE: 31.3%
- Dividend Yield: 0.52%
- Promoter Holding: 75.0%
The Company's product technology encompasses a wide range of solutions, including coatings, metal filtration, feeding systems, flow control, metal treatment, and binders. Some of its key products include INSTA Coatings (a water-based powder coating for ferrous castings), SEMO CC Coatings, and SEMCO FDC, among others. Its comprehensive solutions are categorized into Foundry, Iron & Steel, and Industrial Processes.
Foseco's solutions and advanced computer simulation techniques enable foundries to significantly reduce casting defects such as pinholes, shrinkage cavity, inclusions, scabbing, penetration, or veining. This effectively reduces labor-intensive fettling and machining, minimizes metal usage requirements, optimizes the metal solidification process, and automates molding and casting, thereby leading to reduced costs, energy consumption, and mould size.
Foseco India Limited has made strategic corporate adjustments, including the appointment of J B Bhave & Co. as the new Secretarial Auditor. Key management changes have also occurred, with the resignation of Vineet Thakar and the appointment of Amit Kumar as Commercial Director, signaling a strategic realignment in the company's governance and operational focus.
The company has fixed May 14, 2025, as the record date for determining the entitlement of members to the payment of a final dividend, if declared at the Annual General Meeting (AGM). The final dividend, if declared, is expected to be paid/credited on or before June 19, 2025.
Promoter holding in Foseco India Ltd has remained stable at 74.98% as of March 2025, consistent with June 2024 figures. This stable promoter holding indicates strong management commitment and control over the company's operations.
The company presents a compelling investment rationale. An annual revenue growth of 9% is considered good, a pre-tax margin of 19% is great, and an ROE of 21% is exceptional. Foseco India is debt-free and boasts a strong balance sheet, enabling it to report stable earnings growth across various business cycles.
Over the last five years, revenue has grown at a yearly rate of 10.45%, outperforming the industry average of 6.08%. This demonstrates the company's ability to capture market share and grow faster than its peers in the specialty chemicals sector.
Foseco India's strategic position as the only comprehensive supplier across the entire foundry process, combined with its strong financial metrics, debt-free status, and consistent dividend payments, makes it an attractive investment proposition in the metallurgical industry. The company continues to strengthen its market leadership position while delivering value to shareholders.
