IN April, shares in Insimbi Refractory & Alloy Supplies finally beat the peak they last touched in May 2008.At a time when the company’s major markets — steel, foundry, aluminium and cement — are still facing difficulties, the new peak is a tribute to management’s ability to nurture its customers, manage cash flow and make successful small acquisitions.For Insimbi’s shares to attain a more exciting PE rating than the present 9.18 times will require some eye-opening corporate activity or a major turnaround in sentiment towards small-cap companies. Those are not imminent but quite likely down the line, and in the meantime it offers an appealing dividend yield of 3.95% at a share price of 114c.Insimbi’s business depends largely on government spending on infrastructure. It supplies alloys and refractories (heat-resistant materials) to steel and stainless steel manufacturers, foundries and producers of cement, paper and pulp. And last year it added plastic products for the agricultural a...
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