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

• Market Cap: ₹67.91B
• Dividend Yield: 1.05%
• Average Volume (3M): 13.23K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.51
• 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

Integrated operations with captive power

Captive power reduces reliance on grid supply and stabilizes energy costs for energy-intensive smelting. This structural cost advantage supports more durable unit margins versus peers dependent on external power, improving competitiveness and cash generation over multiple cycles.

Strong balance sheet and low leverage

A solid equity base and low leverage provide financial flexibility to absorb cyclical commodity swings, invest in maintenance or capacity, and avoid distress financing. This stability supports long-term capital allocation and resilience through downturns in steel demand.

Healthy free cash flow generation

Consistent free cash flow and strong operating cash conversion underpin the company's ability to fund capex, service working capital, pay dividends, and reduce leverage. Durable cash generation is a key buffer for cyclical end-markets and sustains strategic investments.

Negative Factors

Recent revenue decline and fluctuations

Volatile top-line trends weaken predictability of margins and cash flow. For a commodity-linked producer, inconsistent revenue complicates multi-period planning, capex prioritization, and long-term margin improvement initiatives, increasing execution risk across cycles.

Earnings pressure (EPS decline)

An over-11% EPS decline indicates profitability under pressure beyond normal volatility. Sustained EPS contraction can limit reinvestment, dividend support, and ability to build reserves, reducing financial optionality and heightening vulnerability if commodity headwinds persist.

Cyclical end-market and FX/export exposure

Dependence on stainless-steel production and export markets links revenue to global industrial cycles and FX swings. Structural cyclicality increases earnings volatility and can pressure margins when global stainless-steel demand or ferrochrome prices soften, limiting long-term predictability.

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	25.71B	25.65B	27.43B	26.39B	25.65B	18.08B
Gross Profit	10.87B	11.69B	11.55B	6.75B	13.93B	4.24B
EBITDA	5.15B	5.30B	6.18B	4.64B	8.13B	3.93B
Net Income	3.30B	3.79B	3.44B	2.25B	5.07B	1.67B
Balance Sheet
Total Assets	33.96B	31.77B	28.32B	26.54B	28.21B	25.41B
Cash, Cash Equivalents and Short-Term Investments	10.33B	9.30B	4.50B	2.78B	1.62B	1.38B
Total Debt	4.35B	3.89B	2.37B	3.41B	4.90B	6.79B
Total Liabilities	8.77B	8.20B	7.04B	7.50B	10.76B	12.69B
Stockholders Equity	25.10B	23.48B	21.20B	18.73B	17.15B	12.42B
Cash Flow
Free Cash Flow	682.00M	4.70B	3.99B	1.51B	3.03B	1.71B
Operating Cash Flow	3.31B	5.85B	5.12B	1.51B	3.90B	2.07B
Investing Cash Flow	-3.29B	-5.62B	-2.09B	1.40B	-1.06B	-1.06B
Financing Cash Flow	35.60M	-679.30M	-2.59B	-2.91B	-2.84B	-993.00M

Indian Metals & Ferro Alloys Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1496.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 1496.4 is above the 20-day moving average (MA) of 1241.38, above the 50-day MA of 1257.28, and above the 200-day MA of 1079.82, indicating a bullish trend. The MACD of -18.62 indicates Negative momentum. The RSI at 50.63 is Neutral, neither overbought nor oversold. The STOCH value of 62.28 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
MAITHANALL	77 Outperform	₹27.10B	8.35	―	1.65%	21.44%	-46.24%
KSL	76 Outperform	₹29.58B	13.58	―	1.36%	-0.46%	4.85%
IMFA	68 Neutral	₹67.91B	15.33	―	1.05%	-6.18%	-23.70%
SUNFLAG	62 Neutral	₹39.80B	20.39	―	0.28%	6.44%	36.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JAYNECOIND	59 Neutral	₹71.53B	28.77	―	―	20.00%	1413.14%
ORISSAMINE	39 Underperform	₹21.90B	172.94	―	―	-27.80%	-365.69%

Indian Metals & Ferro Alloys Ltd. Corporate Events

IMFA Restarts Operations at Newly Acquired Ferro Chrome Plant in Odisha

Indian Metals & Ferro Alloys Ltd. has restarted operations at its newly acquired ferro chrome plant in Kalinganagar, Jajpur district, Odisha, bringing two furnaces back online as of 11 March 2026. The company plans to switch on the remaining two furnaces shortly, indicating a phased ramp-up that should enhance its production capacity and strengthen its position in the ferro chrome market.

The recommissioning of this plant marks an operational expansion that could improve utilization of acquired assets and support volume growth in a key producing region. For stakeholders, the move signals progress on integrating the new facility into IMFA’s network, potentially boosting supply capabilities and competitiveness in the ferro chrome value chain.

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.