Check Before You Invest : Indian Metals & Ferro Alloys Ltd

Snapshot

Q.1 Which industry/sub-sector does Indian Metals & Ferro Alloys Ltd belong to?

Indian Metals & Ferro Alloys Ltd belongs to the Metals & Mining sector, operating specifically within the Ferro & Silica Manganese segment.

Q.2 Is Indian Metals & Ferro Alloys Ltd a good quality company?

Indian Metals & Ferro Alloys Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Indian Metals & Ferro Alloys Ltd undervalued or overvalued?

Indian Metals & Ferro Alloys Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Indian Metals & Ferro Alloys Ltd a good buy now?

Indian Metals & Ferro Alloys Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Indian Metals & Ferro Alloys Ltd?

Indian Metals & Ferro Alloys Ltd revenue growth is -7.8% for FY-2025, which is below its 5-year CAGR of 9.73%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Indian Metals & Ferro Alloys Ltd?

Indian Metals & Ferro Alloys Ltd Return on capital employed is 21.73% for FY-2025, which is in line with its 5-year historical median of 21.73%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Indian Metals & Ferro Alloys Ltd?

Indian Metals & Ferro Alloys Ltd Return on Asset is 12.45%, which is in line with its 5-year historical median of 12.45%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Indian Metals & Ferro Alloys Ltd?

Indian Metals & Ferro Alloys Ltd Return on equity is 17.18% for FY-2025, which is in line with its 5-year historical median of 17.18%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Indian Metals & Ferro Alloys Ltd?

Indian Metals & Ferro Alloys Ltd Cash conversion cycle is 75 days, above its 5-year historical median of 60 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.85	0.98
ROE	17.18	17.18
ROCE	21.73	21.73
Cash Conversion Cycle	75 days	60 days

Q.6 Gross Profit margin of Indian Metals & Ferro Alloys Ltd?

Indian Metals & Ferro Alloys Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.9% for FY-2025, which is in line with its 5-year median of 21.9%, indicating stable margins.

Q.7 Operating Profit Margin of Indian Metals & Ferro Alloys Ltd?

Indian Metals & Ferro Alloys Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 20.76% for FY-2025, which is in line with its 5-year median of 20.76% indicating stable margins.

Q.8 Net Profit Margin of Indian Metals & Ferro Alloys Ltd?

Indian Metals & Ferro Alloys Ltd Net Profit Margin is 14.74% for FY-2025, is above with its 5-year median of 13.08%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	21.9	21.9
Operating Profit Margin	20.76	20.76
Net Profit Margin	14.74	13.08

Q.9 Debt to Equity ratio of Indian Metals & Ferro Alloys Ltd?

Indian Metals & Ferro Alloys Ltd Debt-to-Equity ratio is 0.16, which is above with the industry average of 0.05, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Indian Metals & Ferro Alloys Ltd?

Indian Metals & Ferro Alloys Ltd Debt to cash flow from operations is 0.64, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Indian Metals & Ferro Alloys Ltd?

Promoters hold 58.69% of the Indian Metals & Ferro Alloys Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Indian Metals & Ferro Alloys Ltd vs industry peers?

Indian Metals & Ferro Alloys Ltd revenue CAGR is 9.73%, compared to the industry median CAGR of 2.66%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-7.8	2.7
Gross Profit Growth	-7.4	21.8
Operating Profit Growth	-12.7	13.5
Net Profit Growth	3.9	25

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.85	0.9
ROE	17.18	5.9
ROCE	21.73	4.82
Cash Conversion Cycle (days)	75.02	59

Valuation & price assessment

Q.1 Stock return of Indian Metals & Ferro Alloys Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 36.4% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	36.4%	44.1%	71.1%	149.9%

Q.3 Valuation ratios of Indian Metals & Ferro Alloys Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	22	8.62	16.73
Price to Book	3.1	1.42	1.41
Price to Sales	3.08	1.03	1.02
EV to EBITDA	14.75	5.34	5.56

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