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

• Market Cap: ₹66.95B
• Dividend Yield: 1.05%
• Average Volume (3M): 13.23K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 1.63
• Revenue Growth: -6.18%
• EPS Growth: -23.70%
• Country: IN
• Employees: 2,101
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 24.33
• 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): 82.3
• Revenue Forecast (FY): ₹29.10B

• Rating: 68 Neutral
• Price Target: ₹1,569.00 ▲(4.85% Upside)
• Action: Downgraded Date: 01/07/26
• Date: Action: Downgraded 01/07/26

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

Balance sheet strength

A strong equity base and low leverage provide durable financial flexibility across cycles. This allows the company to fund capital needs, absorb commodity-driven downturns, and invest in plant or captive power without relying heavily on external debt, supporting long-term stability.

Healthy free cash flow

Consistent free cash flow and good cash conversion underpin operational resilience and reinvestment capacity. Robust cash generation supports maintenance and growth capex, working capital needs, and optionality for dividends or debt reduction, enhancing long-term financial health.

Integrated operations with captive power

Owning captive power for energy-intensive smelting is a structural cost advantage. It reduces exposure to volatile grid tariffs and improves unit economics versus peers reliant on external power, helping sustain margins and competitiveness in ferrochrome production over time.

Negative Factors

Recent revenue decline

A negative recent revenue trend signals demand or market-share pressures in ferroalloys. If revenue weakness persists, it can erode operating leverage, limit ability to cover fixed smelting costs, and pressure margins and cash generation over a multi-quarter horizon.

Earnings (EPS) contraction

Material EPS decline suggests margin compression or lower realizations after costs. Persistent EPS contraction reduces retained earnings and may constrain reinvestment or shareholder returns, weakening the company’s capacity to pursue growth or absorb cyclical shocks.

End-market cyclicality & FX exposure

Revenue and pricing are structurally tied to stainless-steel cycles and global ferrochrome markets, plus FX swings for exports. This creates persistent volatility in volumes, realizations, and margins, complicating forecasting and capital allocation across cycles.

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

Strong overall fundamentals supported by healthy free cash flow generation and good cash conversion, a solid equity base, and low leverage. Profitability is stable with healthy EBITDA/EBIT margins, but the most recent revenue decline and slight EBIT margin softening temper the score.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Negative
• 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 1324.40, above the 50-day MA of 1310.78, and above the 200-day MA of 1040.26, indicating a neutral trend. The MACD of 1.80 indicates Positive momentum. The RSI at 45.64 is Neutral, neither overbought nor oversold. The STOCH value of 11.64 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	₹29.08B	6.56	―	1.65%	21.44%	-46.24%
KSL	76 Outperform	₹31.73B	11.91	―	1.36%	-0.46%	4.85%
IMFA	68 Neutral	₹66.95B	18.18	―	1.05%	-6.18%	-23.70%
SUNFLAG	62 Neutral	₹42.96B	20.33	―	0.28%	6.44%	36.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JAYNECOIND	59 Neutral	₹75.37B	20.11	―	―	20.00%	1413.14%
ORISSAMINE	45 Neutral	₹24.90B	-93.92	―	―	-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.