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Indian Metals & Ferro Alloys Ltd Stock Analysis

Small Cap
Evaluated by 628 users | BSE: 533047 | NSE: IMFA |
Ferro & Silica Manganese
Based in the eastern State of Orissa, which is well known for its rich natural resources, Indian Metals & Ferro Alloys (IMFA) is India's largest, fully integrated producer of Ferro Alloys with 157 MVA installed furnace capacity, a 108 MW coal-based Captive Power Plant and extensive Chrome...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 17.6%8.44%7.2%6.53%4.49%2.29%15.04%11%5.19%0.92%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,0681,1931,2731,3181,3451,2111,6721,7661,6341,612
Y-o-Y Gr. Rt.-11.7%6.8%3.5%2%-9.9%38.1%5.6%-7.5%-1.3%
Adjusted EPS (Rs.) 62.5424.3528.3817.944.28-5.9683.73127.927.89-19.47
Y-o-Y Gr. Rt.--61.1%16.6%-36.8%-76.1%-239.3%NA52.8%-78.2%-169.8%
Book Value per Share (Rs.) 281.59302.89317.78329.33325.53311.42386.66905.14874.98396.03
Adjusted Net Profit 16563.373.746.611.1-15.522616736.4-52.5
Net Op. Cash Flow (Rs. Cr.) 180115214229184231423290228225
Debt to Cash Flow from Ops 2.937.184.564.775.824.42.222.943.483.1
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Indian Metals & Ferro Alloys Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 4.7%3.7%-1.2%-1.3%
Adjusted EPS -187.8%-235.4%-161.5%-169.8%
Book Value per Share 3.940.8-54.7
Share Price 3.7% 33.3% -6.3% 153.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 24.438.289.155.541.29-1.8524.3914.923.1-4.72
Operating Profit Margin (%) 31.819.221.5523.3217.9612.3830.812419.877.29
Net Profit Margin (%) 15.425.35.793.540.83-1.2813.519.462.23-3.26
Debt to Equity 0.711.051.181.281.261.250.90.720.70.65
Working Capital Days 212235208249315316212232279275
Cash Conversion Cycle 45645063666942505861
Entity Percentage Holding
Promoters 58.69%
Institutions 1.12%
Non-Institutions 40.19%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Indian Metals & Ferro Alloys Ltd's performance infers:

Indian Metals & Ferro Alloys Ltd earnings have declined by -235.4%, whereas share price has appreciated 33.3% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Indian Metals & Ferro Alloys Ltd share prices over the last 10 years. Here is what we found out:

Indian Metals & Ferro Alloys Ltd share price has appreciated -1.7% annually over the past ten years.

Based in the eastern State of Orissa, which is well known for its rich natural resources, Indian Metals & Ferro Alloys (IMFA) is India's largest, fully integrated producer of Ferro Alloys with 157 MVA installed furnace capacity, a 108 MW coal-based Captive Power Plant and extensive Chrome Ore mining tracts.

In October 2006, Indian Charge Chrome was merged with IMFA to create a leader in the field of Ferro Alloys. Today, IMFA produces Ferro Chrome, Ferro Silicon, High Purity Ferro

Based in the eastern State of Orissa, which is well known for its rich natural resources, Indian Metals & Ferro Alloys (IMFA) is India's largest, fully integrated producer of Ferro Alloys with 157 MVA installed furnace capacity, a 108 MW coal-based Captive Power Plant and extensive Chrome Ore mining tracts.

In October 2006, Indian Charge Chrome was merged with IMFA to create a leader in the field of Ferro Alloys. Today, IMFA produces Ferro Chrome, Ferro Silicon, High Purity Ferro Silicon, and Ferro Silicon Magnesium for the domestic market as well as major international markets. IMFA is unique from a quality perspective in that it has multi-product & multi-location ISO 9001 certification covering the entire range of its activities.

Utkal Coal (UCL) is a Special Purpose Vehicle (SPV) which has been set up by IMFA to develop the Utkal “C” captive coal block (recoverable reserves of 130 million tonne) in Orissa’s Angul district which has been allotted to the group for its existing 108 MW power plant and future expansions.

In the domestic market, IMFA's customers include Steel Authority of India Ltd. (SAIL), Jindal Group, Shah Alloys and Visakhapatnam Steel Plant (VSP) among others. As far as exports are concerned, the primary focus of the company is on the far-east markets of Japan, Korea and Taiwan where there are significant logistical advantages in supplying from the Indian east-coast. Thus, IMFA regularly exports to major companies such as Aichi, Daido, Kawasaki Steel, NMI & Nippon Yakin in Japan, POSCO in South Korea and Yieh Group in Taiwan. Today, IMFA is the largest exporter of value added Ferro Chrome in the country and also a significant supplier of Ferro Chrome to POSCO of South Korea.

Products:

1. Ferro Alloys

IMFA produces different Ferro Alloys with one thing in common - all its products are used as inputs by the steel industry with the use of a particular alloy depending upon its specific properties.

2. Mining

IMFA has extensive Chrome Ore mining tracts in Orissa’s famed Sukinda Valley in Jajpur district, which contains 98% of India's high quality deposit of the strategic raw material, as well as the Nuasahi belt.

Besides, IMFA also operates quartz mines which provide the raw material for its Silicon operations. The Chrome Ore mining operations predominantly employ the open cast method at present but will eventually shift to underground operations. In fact, a beginning has already been made in this regard.

3. Power

Since Ferro Alloys production is very power intensive operation, a state of the art 108 MW coal-based Captive Power Plant is a critical component of IMFA’s operations. Its output not only meets the entire electricity requirement of IMFA but some surplus is also supplied to the state grid. Further, plans are on the anvil to increase power generation to take locational advantage of IMFA's operation in Choudwar which is next to the major load centre of Orissa.

Divisions:

1. Ferro Alloys Division - Therubali

Located within Rayagada district in Orissa's South-Western extremity, the flagship of IMFA, Therubali is recognised within the State as its first home-grown industrial entity. Over the years the company has grown to become the largest Ferro Alloys complex in India with three furnaces totalling 82 MVA capacity, able to rub shoulders with the best in the business worldwide by dint of its size and technological capabilities.

2. Ferro Alloys Division - Choudwar

IMFA's operation is located in Choudwar across the banks of the Mahanadi river in the millennium city of Cuttack, Orissa's second largest city and erstwhile capital. It houses a 48 MVA furnace dedicated in producing Ferro Chrome.

3. Power Division 

IMFA's 108 MW coal-based Captive Power Plant is also located in Choudwar across the banks of the Mahanadi river. The Power Plant not only meets the entire electricity requirements of IMFA's but also supplies to the state grid.

4. Mines Division 

IMFA's foray into mining commenced in the 1960's when it operated several quartz mines to cater to its raw material requirement for the production of Ferro Silicon and Silicon Metal. The focus has now shifted to Chrome Ore mining which meets IMFA's large captive requirement of this vital raw material for its Ferro Chrome production.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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