RHI Magnesita NV (LSE: RHIM)

RHI Magnesita NV (LSE: RHIM) is the leading global supplier of high-grade refractory products, systems and solutions which are critical for high temperature processes exceeding 1,200°C in a wide range of industries, including steel, cement, non-ferrous metals and glass. With a vertically integrated value chain, from raw materials to refractory products and full performance-based solutions, RHI Magnesita serves customers around the world, with around 22,000 employees in 47 main production sites, 9 recycling facilities and more than 70 sales offices.

Key Recommendation Rationale – Speculative Buy at GBX 2,700.00

• Earnings Recovery Driven by Self-Help and Cost Actions: RHI Magnesita is delivering a step-up in H2 2025 earnings through price increases, SG&A savings, fixed-cost reductions and executed European plant closures. These actions underpin full-year Adjusted EBITA guidance of €370–390m and support margin improvement into H1 2026 despite cyclical end-market weakness.
• Market Share Gains and Geographic Growth Exposure: The Group is regaining market share in India and META, with additional upside from seasonal recovery in China. Its diversified geographic footprint and strong local networks position it well to benefit from faster-growing regions and potential medium-term stabilisation in European steel production.
• Value-Accretive M&A and Recycling Strategy: An active M&A programme in a fragmented global refractory market remains a key growth driver. The US recycling joint venture with BPI expands a proven European model, delivering cost synergies, sustainability benefits and reduced CO₂ emissions, while also mitigating raw material and tariff risks..

Valuation Methodology: Price/ Earnings Approach

Share Price Chart  

 RHIM Daily Technical Chart, Source - Refinitiv 

Conclusion

For conducting the valuation, the following peers have been considered - Vesuvius PLC (LSE: VSVS), Dowlais Group Plc (LSE: DWL) and others.

Given its current trading levels, earnings recovery, market share gains and geographic growth, value-accretive M&A, relative valuation, and associated risks a ‘Speculative Buy’ recommendation is given on the stock at the Current Market Price of GBX 2,700.00 as of 24 December 2025 at 08:15 AM GMT.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 24 December 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and/or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.