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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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

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.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 0-year
Historic Median
Price to Earnings - 52.95
Price to Book - 3.54
Price to Sales - 3.19
EV to EBITDA - 20.68
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

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

C: How much debt does the business have and is it at a sustainable level?

Q.1 Debt to Equity ratio of Chennai Ferrous Industries Ltd?
Chennai Ferrous Industries Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of , indicating similar to debt levels in the industry.

Q.2 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

D: Promoter shareholding and pledge status of Chennai Ferrous Industries Ltd?

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)

E: How does Chennai Ferrous Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Chennai Ferrous Industries Ltd vs industry peers?
Chennai Ferrous Industries Ltd revenue CAGR is %, compared to the industry median CAGR of 6.33%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - 6.3
Gross Profit Growth (%) - 31.7
Operating Profit Growth (%) - 33
Net Profit Growth (%) - 7.8
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) - 1.36
ROE (%) - 7.04
ROCE (%) - 10.15
Cash Conversion Cycle (days) - 52

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 29.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
29.1% 11.7% -15.5% -38.3%
Q.2 Valuation ratios of Chennai Ferrous Industries Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 52.95, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings - 52.95 -
Price to Book - 3.54 -
Price to Sales - 3.19 -
EV to EBITDA - 20.68 -

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