Indian Metals & Ferro Alloys Ltd. (IMFA) AI Stock Analysis

• Market Cap: ₹66.49B
• Dividend Yield: 1.05%
• Average Volume (3M): 13.23K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 1.65
• Revenue Growth: -6.18%
• EPS Growth: -23.70%
• Country: IN
• Employees: 2,101
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 18.07
• Shares Outstanding: 53,954,105
• 10 Day Avg. Volume: 12,331
• 30 Day Avg. Volume: 13,227
• PEG Ratio: 0.87
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 7.19
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ₹1,408.00 ▼(-5.91% Downside)

The score is driven primarily by solid financial performance (strong cash flow, low leverage, stable profitability), offset by weaker near-term technical signals (below 20/50-day averages and low RSI) and a valuation that is not especially cheap (P/E ~23.8 with a modest yield).

Positive Factors

Vertical integration and captive power

Owning mines, smelters and captive power reduces input cost volatility and secures raw material and energy supply. Over months this structural advantage supports stable production, better margin control and resilience to external supply disruptions versus non-integrated peers.

Strong balance sheet with low leverage

A solid equity base and low leverage provide financial flexibility to fund maintenance capex, absorb cyclical downturns, and avoid distressed refinancing. This durability supports longer-term investment and stability through commodity-driven cycles.

Healthy free cash flow generation

Consistent free cash flow and strong cash conversion enable internal funding for capex, working capital and potential shareholder returns without heavy external financing. Over 2–6 months this underpins operational continuity and strategic optionality.

Negative Factors

Recent revenue decline

A recent drop in revenue signals demand or pricing pressures that can erode operating leverage. Persisting revenue weakness reduces ability to absorb fixed costs, may compress margins, and constrains reinvestment and organic growth over the medium term.

Material EPS contraction

A nearly 24% EPS decline indicates profitability stress that may reflect margin pressure or one-off impacts. Reduced earnings limit internal funding, weaken per-share performance metrics, and could constrain capital allocation choices over subsequent quarters.

High exposure to stainless steel cyclicality

IMFA's revenue is closely tied to stainless steel demand and ferro-alloy pricing, creating structural cyclicality. Industry swings in volumes and prices can produce sustained earnings volatility and capex timing challenges across multiple quarters.

Indian Metals & Ferro Alloys Ltd. Business Overview & Revenue Model

Company Description

Indian Metals and Ferro Alloys Limited produces and sells ferro chrome in India. It also offers fly-ash bricks and low-density aggregates. The company exports its products to Korea, China, Japan, and Taiwan. Indian Metals and Ferro Alloys Limited was incorporated in 1961 and is headquartered in Bhubaneswar, India.

How the Company Makes Money

IMFA generates revenue primarily through the sale of ferro alloys, particularly ferro chrome, which is sold to stainless steel manufacturers in India and abroad. The company benefits from its integrated operations, which allow it to control costs and improve margins. In addition to ferro alloys, IMFA also earns income from the sale of power generated through its captive power plants, leveraging its mining operations to ensure a steady supply of raw materials. Strategic partnerships with domestic and international steel producers enhance its market presence and contribute significantly to its revenue streams. The demand for stainless steel and the global market dynamics for ferro alloys play a crucial role in influencing IMFA's earnings.

Indian Metals & Ferro Alloys Ltd. Financial Statement Overview

Summary

Indian Metals & Ferro Alloys Ltd. demonstrates strong financial health with robust profitability and efficient cash flow management. The company's low leverage and solid equity position provide stability. However, the recent revenue decline warrants attention to ensure sustained growth.

Income Statement

Indian Metals & Ferro Alloys Ltd. shows a solid gross profit margin, indicating efficient production processes. The net profit margin has been consistent, reflecting stable profitability. However, revenue growth is fluctuating, with a decline in the most recent year, which could be a potential concern. The EBIT and EBITDA margins are healthy, but a slight decline in EBIT margin suggests some operational challenges.

Balance Sheet

The company maintains a strong equity base with a favorable equity ratio, indicating good financial stability. The debt-to-equity ratio is low, suggesting prudent leverage management. Return on Equity is satisfactory, showing effective use of shareholder funds. The balance sheet indicates robust financial health, but continuous monitoring of liabilities is advisable.

Cash Flow

Cash flow statements reveal healthy free cash flow generation, supporting investment and operational needs. The operating cash flow to net income ratio is strong, indicating effective cash conversion. Free cash flow growth is positive, contributing to financial flexibility. Despite some fluctuations in investing and financing cash flows, overall cash flow management appears solid.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.44B	25.65B	27.43B	26.39B	25.65B	18.08B
Gross Profit	12.71B	11.69B	11.55B	6.75B	13.93B	4.24B
EBITDA	5.51B	5.30B	6.18B	4.64B	8.13B	3.93B
Net Income	3.58B	3.79B	3.44B	2.25B	5.07B	1.67B
Balance Sheet
Total Assets	0.00	31.77B	28.32B	26.54B	28.21B	25.41B
Cash, Cash Equivalents and Short-Term Investments	9.28B	9.30B	4.50B	2.78B	1.62B	1.38B
Total Debt	0.00	3.89B	2.37B	3.41B	4.90B	6.79B
Total Liabilities	-23.57B	8.20B	7.04B	7.50B	10.76B	12.69B
Stockholders Equity	23.57B	23.48B	21.20B	18.73B	17.15B	12.42B
Cash Flow
Free Cash Flow	0.00	4.70B	3.99B	1.51B	3.03B	1.71B
Operating Cash Flow	0.00	5.85B	5.12B	1.51B	3.90B	2.07B
Investing Cash Flow	0.00	-5.62B	-2.09B	1.40B	-1.06B	-1.06B
Financing Cash Flow	0.00	-679.30M	-2.59B	-2.91B	-2.84B	-993.00M

Indian Metals & Ferro Alloys Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1496.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IMFA, the sentiment is Neutral. The current price of 1496.4 is above the 20-day moving average (MA) of 1380.55, above the 50-day MA of 1340.45, and above the 200-day MA of 941.29, indicating a neutral trend. The MACD of -28.83 indicates Positive momentum. The RSI at 34.94 is Neutral, neither overbought nor oversold. The STOCH value of 9.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:IMFA.

Indian Metals & Ferro Alloys Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAITHANALL	77 Outperform	₹31.75B	6.95	―	1.65%	21.44%	-46.24%
KSL	76 Outperform	₹30.24B	11.65	―	1.36%	-0.46%	4.85%
IMFA	68 Neutral	₹66.49B	20.03	―	1.05%	-6.18%	-23.70%
SUNFLAG	62 Neutral	₹45.18B	22.97	―	0.28%	6.44%	36.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JAYNECOIND	59 Neutral	₹85.59B	22.10	―	―	20.00%	1413.14%
ORISSAMINE	45 Neutral	₹29.36B	-75.10	―	―	-27.80%	-365.69%

Indian Metals & Ferro Alloys Ltd. Corporate Events

IMFA Denies Any Undisclosed Factors Behind Surge in Share Trading Volume

Indian Metals & Ferro Alloys Limited has responded to a query from the National Stock Exchange of India regarding a recent significant increase in trading volume of its shares. The company stated that it has fully complied with applicable disclosure requirements, has not withheld any material information that could affect the price or volume of its stock, and is unaware of any specific reason for the heightened trading activity, which it attributes to market-driven factors, while affirming that there are no pending compliance issues.

IMFA Acquires 26% Stake in JSW Renew Energy Twelve Limited

Indian Metals & Ferro Alloys Limited announced the acquisition of a 26% shareholding in JSW Renew Energy Twelve Limited (JRETL) following the allotment of 1,28,07,000 equity shares. This strategic move enhances the company’s investment portfolio and strengthens its position in the renewable energy sector, potentially offering new growth opportunities and diversifying its interests beyond traditional metal and alloy production.