Indian Metals & Ferro Alloys Ltd Stock Analysis

BSE: 533047 | NSE: IMFA | Ferro & Silica Manganese | Small Cap

BSE Share Price 23-Sep-2022 18:01
254.95 -6.90 (-2.64%)

DeciZen - Make an Informed Decision on Indian Metal & Ferro

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Indian Metal & Ferro Price Chart

P/E Ratio (SA) :
2.53
Market Cap :
1,375.6 Cr.
52-wk low :
230.4
52-wk high :
514
Bole Toh?

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

Past 10 year's financial track record analysis by Moneyworks4me indicates that Indian Metals & Ferro Alloys Ltd is a average quality company.

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

The key valuation ratios of Indian Metals & Ferro Alloys Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

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

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Indian Metals & Ferro Alloys Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Indian Metal & Ferro:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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.
Indian Metals & Ferro Alloys Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 7.2%6.5%4.5%2.3%15%11%5.2%0.9%9.6%26.5%-
Value Creation Index -0.5-0.5-0.7-0.80.1-0.2-0.6-0.9-0.30.9-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,2731,3181,3451,2111,6721,7661,6341,6121,8442,6032,809
YoY Gr. Rt. %-3.5%2%-9.9%38.1%5.6%-7.5%-1.3%14.4%41.1%-
Adj EPS 14.292.1-341.96413.9-9.824.191.8100.7
YoY Gr. Rt. %--36.8%-76.1%-239.3%NA52.8%-78.2%-170.1%NA280.6%-
BVPS (₹) 158.9164.7162.8155.7193.3452.6437.5198227.3315.2340.1
Adj Net Profit 73.746.611.1-15.522616736.4-52.7130495543
Cash Flow from Ops. 214229184231423290228225207389-
Debt/CF from Ops. 4.64.85.84.42.22.93.53.13.21.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 8.3%9.3%16.8%41.1%
Adj EPS 23.1%17%87.4%280.6%
BVPS 7.910.3-10.438.7
Share Price 7.5% -4.6% 39.7% -26.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 9.25.51.3-1.924.414.93.1-4.711.333.830.7
Op. Profit Mgn % 21.623.31812.430.82419.97.317.830.930.6
Net Profit Mgn % 5.83.50.8-1.313.59.52.2-3.37.11919.3
Debt to Equity 1.21.31.31.30.90.70.70.70.50.3-
Working Cap Days 2082493153162122322792752331930
Cash Conv. Cycle 506366694250586155580

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 30.70%

Sales growth is growing at healthy rate in last 3 years 16.79%

Net Profit is growing at healthy rate in last 3 years 87.40%

Sales growth is good in last 4 quarters at 43.21%

No data to display

Latest Financials - Indian Metals & Ferro Alloys Ltd.

Standalone Consolidated
TTM EPS (₹) 100.7 100.5
TTM Sales (₹ Cr.) 2,809 2,809
BVPS (₹.) 340.1 342.8
Reserves (₹ Cr.) 1,781 1,796
P/BV 0.75 0.74
PE 2.53 2.53
From the Market
52 Week Low / High (₹) 230.40 / 514.00
All Time Low / High (₹) 46.00 / 514.00
Market Cap (₹ Cr.) 1,376
Equity (₹ Cr.) 54
Face Value (₹) 10
Industry PE 3.5

Management X-Ray of Indian Metal & Ferro :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Indian Metal & Ferro

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Indian Metals & Ferro Alloys Ltd

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.

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