Dashboard/IMFA

IMFA

OVERVALUED

Indian Metals & Ferro Alloys Limited

Metals · NSE

↓ 59.9% vs fair value

52W Low

₹550

+134.6% from low

52W High

₹1,511

-14.6% from high

News sentiment (6 articles)

0 bull2 neutral4 bear

✦

Analyst Note

2d ago

Indian Metals & Ferro Alloys trades at ₹1,290, representing a 54.7% overvaluation against its fair value of ₹806.81, warranting caution despite medium confidence in the valuation. The company shows mixed fundamentals: earnings surged 40.6% year-on-year with solid free cash flow of ₹470 Cr, but ROCE is deteriorating and long-term earnings have contracted 9.3% over five years. Sentiment remains consistently bearish across both weekly and monthly periods, aligning with the elevated valuation. This stock suits value investors hunting for mean reversion opportunities, though timing and entry price remain critical.

Valuation Gauge

OVERVALUED-59.9% Margin of Safety

OVERVALUEDFAIRLY VALUEDUNDERVALUED

Current Price

₹1,290

Fair Value

₹807

Fair Value Analysis

₹807

Based on balance sheet strength analysis and earnings multiple (EV/EBITDA) for Metals sector companies | CAUTION: ROCE declining (latest 19.4%) — returns on capital are falling; verify this isn't a value trap. | COVID-resilient: PAT dropped from ₹187Cr (FY2018) to ₹-66Cr (FY2020) during COVID but has fully recovered.

Medium confidence

Balance Sheet Value

40% weight

₹892

EV/EBITDA Multiple

60% weight

₹750

Price vs Market

IMFA

Nifty 50

Shareholding Pattern

Stock Health Score

Financially Strong

8.5 / 10

Profitability

10/10

ROE of 16.3% is above the Metals sector benchmark of 12% — strong returns

Debt & Leverage

10/10

D/E ratio of 0.2x is well within the Metals sector norm of 0.8x — strong balance sheet

Valuation vs Peers

10/10

P/E of 16.4x trades at a 73% discount to Metals sector median (61x) — attractively valued

Cash Flow

10/10

FCF margin of 18.5% — exceptional cash generation (₹470 Cr)

Earnings Growth

3/10

5yr EPS CAGR of -9.3% — earnings are declining (sector avg growth: 13.8%)

Dividend

9/10

Dividend yield of 2.0% provides strong shareholder returns (benchmark: 2.0%)

Sentiment Trend — Last 30 Days

Historical Returns

Key Ratios & Growth

FCF Yield

0.3%

Free cash flow / market cap

Revenue Growth (YoY)

+5.8%

Year-on-year revenue change

Profit Growth (YoY)

-29.7%

Year-on-year PAT change

Operating Cash Flow

₹585 Cr

TTM cash from operations

Key Financials

EPS (TTM)

₹75.9

P/E Ratio

16.5x

P/B Ratio

2.7x

ROE

16.3%

ROCE

21.9%

Debt / Equity

0.17x

Beta

-0.03

Div Yield

1.9%

FCF (Cr)

₹470 Cr

Revenue (Cr)

₹2,535 Cr

EPS Growth 5Y

-9.3%

Mkt Cap (Cr)

₹6,787 Cr

52W High

₹1,510.6

52W Low

₹549.8

Book Value/Share

₹466.2

Financial History

Period	Revenue	Op Profit	OPM%	PAT	EPS
TTM	₹2.6K Cr	₹499 Cr	19.0%	₹369 Cr	₹68.28
2025-03-31	₹2.6K Cr	₹531 Cr	21.0%	₹379 Cr	₹70.19
2024-03-31	₹2.8K Cr	₹587 Cr	21.0%	₹344 Cr	₹63.68
2023-03-31	₹2.7K Cr	₹488 Cr	18.0%	₹226 Cr	₹41.75
2022-03-31	₹2.6K Cr	₹810 Cr	31.0%	₹508 Cr	₹94.01
2021-03-31	₹1.8K Cr	₹338 Cr	18.0%	₹167 Cr	₹30.84
2020-03-31	₹1.6K Cr	₹89 Cr	6.0%	₹-66 Cr	₹-12.31
2019-03-31	₹1.6K Cr	₹272 Cr	17.0%	₹-1 Cr	₹-0.19
2018-03-31	₹1.8K Cr	₹432 Cr	24.0%	₹187 Cr	₹34.46
2017-03-31	₹1.7K Cr	₹513 Cr	31.0%	₹249 Cr	₹46.10
2016-03-31	₹1.2K Cr	₹123 Cr	10.0%	₹-44 Cr	₹-8.47
2015-03-31	₹1.3K Cr	₹241 Cr	18.0%	₹4 Cr	₹0.71
2014-03-31	₹1.3K Cr	₹287 Cr	22.0%	₹35 Cr	₹6.72

Compounded Growth Rates

Sales Growth

3Y-0.6%

5Y+7.4%

10Y+8.1%

Profit Growth

3Y+17.8%

5Y+17.2%

10Y—

EPS Growth

3Y+17.8%

5Y+17.2%

10Y—

Peer Comparison

Metals

Stock	Price	Fair Value	MoS%	P/E	ROE	Signal
JINDALSAW Jindal Saw	₹195	₹436.2	+55.3%	10.9	16.0%	UNDERVALUED
STEELCITY Steel City Securities Limited	₹80.6	₹130.7	+38.4%	6.9	12.1%	UNDERVALUED
VSTL Vibhor Steel Tubes Limited	₹109.4	₹143.4	+23.7%	19.3	7.0%	FAIRLY_VALUED
HISARMETAL Hisar Metal Industries Limited	₹143.9	₹186.5	+22.9%	30.5	7.1%	FAIRLY_VALUED
SSWL Steel Strips Wheels Limited	₹190	₹213.8	+11.1%	15.7	13.0%	FAIRLY_VALUED
HINDALCO Hindalco Industries	₹926.8	₹1,039.1	+10.8%	12.7	11.9%	FAIRLY_VALUED
MAHSEAMLES Maharashtra Seamless Limited	₹595	₹656.6	+9.4%	9.4	14.0%	FAIRLY_VALUED
VRAJ Vraj Iron and Steel Limited	₹106	₹113.6	+6.7%	13	6.4%	FAIRLY_VALUED