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Check Before You Invest : Chennai Ferrous Industries Ltd

BSE: 539011 NSE: ISIN: INE777O01016
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Chennai Ferrous Industries Ltd belong to?
Chennai Ferrous Industries Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Chennai Ferrous Industries Ltd a good quality company?
Chennai Ferrous Industries Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Chennai Ferrous Industries Ltd undervalued or overvalued?
Chennai Ferrous Industries Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Chennai Ferrous Industries Ltd a good buy now?
Chennai Ferrous Industries Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Chennai Ferrous Industries Ltd?
Chennai Ferrous Industries Ltd revenue growth is 58.1% for FY-2025 , which is below its 5 year CAGR of 94.7% , indicating slower growth.
Q.2 Gross Profit margin of Chennai Ferrous Industries Ltd?
Chennai Ferrous Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 3% for FY-2025 , which is below its 5 year median of 4.2% , indicating decreasing margins.
Q.3 Operating Profit Margin of Chennai Ferrous Industries Ltd?
Chennai Ferrous Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.07% for FY-2025 , which is below its 5 year median of 2.61% indicating decreasing margins.
Q.4 Net Profit Margin of Chennai Ferrous Industries Ltd?
Chennai Ferrous Industries Ltd Net Profit Margin is 1.8% for FY-2025 , is below with its 5 year median of 2.37%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 3 4.2
Operating Profit Margin 2.07 2.61
Net Profit Margin 1.8 2.37
Q.5 Return on Asset of Chennai Ferrous Industries Ltd?
Chennai Ferrous Industries Ltd Return on Asset is 5.53%, which is in line with its 5 year historical median of 5.53%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Chennai Ferrous Industries Ltd?
Chennai Ferrous Industries Ltd Return on equity is 17.08% for FY-2025 , which is in line with its historical median of 17.08%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Chennai Ferrous Industries Ltd?
Chennai Ferrous Industries Ltd Return on capital employed is 24.05% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Chennai Ferrous Industries Ltd?
Chennai Ferrous Industries Ltd Cash conversion cycle is -9 days, above its historical median of -103 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 3.07 1.52
ROE 17.08 17.08
ROCE 24.05 24.05
Cash Conversion Cycle -9 days -103 days
Q.9 Debt to Equity ratio of Chennai Ferrous Industries Ltd?
Chennai Ferrous Industries Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.03 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Chennai Ferrous Industries Ltd?
Chennai Ferrous Industries Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Chennai Ferrous Industries Ltd?
Promoters hold 67.74% of the Chennai Ferrous Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Chennai Ferrous Industries Ltd vs industry peers?
Chennai Ferrous Industries Ltd revenue CAGR is 94.65% , compared to the industry median CAGR of 0% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 222.4 13.3
Gross Profit 6.7 0.4
Operating Profit 4.6 0
Net Profit 4 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 3.07 0.5
ROE 17.08 2.03
ROCE 24.05 3.6
Cash Conversion Cycle (days) -8.54 41

Valuation & price assessment

Q.1 Stock return of Chennai Ferrous Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 36.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 36.9% 77% -12.2% -9.1%
Q.3 Valuation ratios of Chennai Ferrous Industries Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 21.79 2.43 21.75
Price to Book 1.31 2.94 1.55
Price to Sales 0.19 0.50 1.87
EV to EBITDA 9.1 2.29 13.67

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