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

• Market Cap: ₹76.38B
• Dividend Yield: 1.05%
• Average Volume (3M): 13.23K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 1.49
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ₹1,353.00 ▼(-4.76% Downside)

Indian Metals & Ferro Alloys Ltd. scores well due to strong financial performance and positive technical indicators. The company's robust profitability and efficient cash flow management are significant strengths. The technical analysis indicates bullish momentum, although caution is advised due to the RSI nearing overbought levels. Valuation is fair, with a reasonable P/E ratio and moderate dividend yield.

Positive Factors

Integrated Operations

Integrated operations allow IMFA to control costs and improve margins, providing a competitive advantage in the ferro alloys market.

Financial Stability

A strong equity base and low debt-to-equity ratio ensure financial stability, enabling IMFA to withstand market fluctuations and invest in growth.

Cash Flow Management

Effective cash flow management supports operational needs and investments, enhancing IMFA's ability to sustain growth and financial flexibility.

Negative Factors

Revenue Decline

A recent decline in revenue growth could indicate challenges in market demand or competitive pressures, potentially impacting long-term growth.

Operational Challenges

Declining EBIT margins may reflect operational inefficiencies or rising costs, which could affect profitability if not addressed.

Earnings Volatility

Lack of earnings call data may limit transparency and investor confidence, potentially leading to volatility in earnings perception.

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

Company Description

Indian Metals & Ferro Alloys Ltd. (IMFA) is one of India's largest manufacturers of ferro alloys, primarily operating in the metals and mining sector. Established in 1961, the company focuses on the production of ferro alloys such as ferro chrome, which is essential for the production of stainless steel. IMFA operates its own power plants and has integrated operations that include mining, smelting, and the generation of power, positioning itself as a key player in the metallurgical industry.

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: Positive
• Last Price: 1420.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IMFA, the sentiment is Positive. The current price of 1420.6 is above the 20-day moving average (MA) of 1368.17, above the 50-day MA of 1276.01, and above the 200-day MA of 889.55, indicating a bullish trend. The MACD of 40.92 indicates Positive momentum. The RSI at 58.59 is Neutral, neither overbought nor oversold. The STOCH value of 61.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
KSL	76 Outperform	₹32.15B	12.26	―	1.36%	-0.46%	4.85%
IMFA	76 Outperform	₹76.38B	23.20	―	1.05%	-6.18%	-23.70%
MAITHANALL	68 Neutral	₹27.82B	6.28	―	1.71%	21.44%	-46.24%
SUNFLAG	62 Neutral	₹48.49B	23.86	―	0.28%	6.44%	36.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JAYNECOIND	57 Neutral	₹76.14B	20.01	―	―	20.00%	1413.14%
ORISSAMINE	45 Neutral	₹28.11B	-75.19	―	―	-27.80%	-365.69%

Indian Metals & Ferro Alloys Ltd. Corporate Events

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.