Check Before You Invest : Jainam Ferro Alloys (I) Ltd

Snapshot

Q.1 Which industry/sub-sector does Jainam Ferro Alloys (I) Ltd belong to?

Jainam Ferro Alloys (I) Ltd belongs to the Metals & Mining sector, operating specifically within the Ferro & Silica Manganese segment.

Q.2 Is Jainam Ferro Alloys (I) Ltd a good quality company?

Jainam Ferro Alloys (I) Ltd is a average quality company, based on a somewhat consistent 7-year financial track record.

Q.3 Is Jainam Ferro Alloys (I) Ltd undervalued or overvalued?

Jainam Ferro Alloys (I) Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Jainam Ferro Alloys (I) Ltd a good buy now?

Jainam Ferro Alloys (I) 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 Jainam Ferro Alloys (I) Ltd?

Jainam Ferro Alloys (I) Ltd revenue growth is 16.7% for FY-2025, which is above its 5-year CAGR of 12.76%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Jainam Ferro Alloys (I) Ltd?

Jainam Ferro Alloys (I) Ltd Return on capital employed is 13.05% for FY-2025, which is below its 5-year historical median of 22.47%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Jainam Ferro Alloys (I) Ltd?

Jainam Ferro Alloys (I) Ltd Return on Asset is 6.54%, which is in line with its 5-year historical median of 6.84%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Jainam Ferro Alloys (I) Ltd?

Jainam Ferro Alloys (I) Ltd Return on equity is 9.47% for FY-2025, which is below its 5-year historical median of 14.69%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Jainam Ferro Alloys (I) Ltd?

Jainam Ferro Alloys (I) Ltd Cash conversion cycle is 8 days, in line with its 5-year historical median of 8 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.65	2.56
ROE	9.47	14.69
ROCE	13.05	22.47
Cash Conversion Cycle	8 days	8 days

Q.6 Gross Profit margin of Jainam Ferro Alloys (I) Ltd?

Jainam Ferro Alloys (I) Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.6% for FY-2025, which is in line with its 5-year median of 6.6%, indicating stable margins.

Q.7 Operating Profit Margin of Jainam Ferro Alloys (I) Ltd?

Jainam Ferro Alloys (I) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.74% for FY-2025, which is in line with its 5-year median of 6.74% indicating stable margins.

Q.8 Net Profit Margin of Jainam Ferro Alloys (I) Ltd?

Jainam Ferro Alloys (I) Ltd Net Profit Margin is 4.84% for FY-2025, is in line with with its 5-year median of 4.84%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	6.6	6.6
Operating Profit Margin	6.74	6.74
Net Profit Margin	4.84	4.84

Q.9 Debt to Equity ratio of Jainam Ferro Alloys (I) Ltd?

Jainam Ferro Alloys (I) Ltd Debt-to-Equity ratio is 0.01, which is lower with the industry average of 0.05, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Jainam Ferro Alloys (I) Ltd?

Jainam Ferro Alloys (I) Ltd Debt to cash flow from operations is -0.72, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Jainam Ferro Alloys (I) Ltd?

Promoters hold 66.25% of the Jainam Ferro Alloys (I) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Jainam Ferro Alloys (I) Ltd vs industry peers?

Jainam Ferro Alloys (I) Ltd revenue CAGR is 12.76%, 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	16.7	2.7
Gross Profit Growth	80	21.8
Operating Profit Growth	150	13.5
Net Profit Growth	83.3	25

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.65	0.9
ROE	9.47	5.9
ROCE	13.05	4.82
Cash Conversion Cycle (days)	7.93	59

Valuation & price assessment

Q.1 Stock return of Jainam Ferro Alloys (I) Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 22.9% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	22.9%	2.5%

Q.3 Valuation ratios of Jainam Ferro Alloys (I) 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	27.97	22.05	16.73
Price to Book	2.45	2.25	1.41
Price to Sales	1.36	0.88	1.02
EV to EBITDA	13	8.83	5.56

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