Chennai Ferrous Industries Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 29, 2024, 8:28 pm

Market Cap	47.4 Cr.
Current Price	131
High / Low	175/103
Stock P/E	10.7
Book Value	141
Dividend Yield	0.00 %
ROCE	10.2 %
ROE	5.85 %
Face Value	10.0
PEG Ratio	250.59

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for Chennai Ferrous Industries Ltd

Competitors of Chennai Ferrous Industries Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Chennai Ferrous Industries Ltd	47.4 Cr.	131	175/103	10.7	141	0.00 %	10.2 %	5.85 %	10.0
Bihar Sponge Iron Ltd	155 Cr.	17.2	26.8/10.2	14.4	5.61	0.00 %	11.0 %	%	10.0
Ashirwad Steels & Industries Ltd	57.1 Cr.	45.7	67.6/31.5	22.1	65.7	0.00 %	4.08 %	2.84 %	10.0
Vaswani Industries Ltd	142 Cr.	47.5	73.9/28.5	13.9	42.2	0.00 %	13.3 %	7.76 %	10.0
Sarda Energy & Minerals Ltd	16,854 Cr.	478	525/180	28.2	168	0.21 %	15.3 %	14.1 %	1.00
Industry Average	17,333.67 Cr	331.75		31.19	109.63	0.10%	19.34%	18.46%	7.75

All Competitor Stocks of Chennai Ferrous Industries Ltd

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	12.54	0.60	28.10	54.64	30.70	36.25	40.91	33.73	95.69	5.07	20.55	21.74	74.08
Expenses	6.40	0.13	19.68	43.34	26.75	36.31	40.27	34.56	93.96	3.16	19.64	20.30	71.49
Operating Profit	6.14	0.47	8.42	11.30	3.95	-0.06	0.64	-0.83	1.73	1.91	0.91	1.44	2.59
OPM %	48.96%	78.33%	29.96%	20.68%	12.87%	-0.17%	1.56%	-2.46%	1.81%	37.67%	4.43%	6.62%	3.50%
Other Income	0.00	0.00	0.00	0.07	0.00	0.70	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Interest	0.00	0.00	0.00	0.00	0.00	0.00	0.02	0.00	0.05	0.01	0.00	0.05	0.00
Depreciation	0.27	0.27	0.27	0.27	0.27	0.27	0.27	0.27	0.27	0.27	0.27	0.33	0.27
Profit before tax	5.87	0.20	8.15	11.10	3.68	0.37	0.35	-1.10	1.41	1.63	0.64	1.06	2.32
Tax %	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	25.00%
Net Profit	5.87	0.20	8.15	11.10	3.68	0.37	0.35	-1.10	1.41	1.63	0.64	1.06	1.74
EPS in Rs	16.29	0.55	22.61	30.79	10.21	1.03	0.97	-3.05	3.91	4.52	1.78	2.94	4.83

Last Updated: October 7, 2024, 8:22 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 23, 2024, 2:46 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	45	30	29	28	3	13	7	8	46	96	139	136	121
Expenses	45	39	43	45	5	14	5	4	40	70	138	137	115
Operating Profit	0	-9	-14	-18	-1	-1	2	4	6	26	1	-1	7
OPM %	0%	-31%	-48%	-63%	-40%	-11%	32%	52%	13%	27%	1%	-0%	6%
Other Income	2	11	0	0	0	0	0	0	0	0	3	7	0
Interest	1	0	0	0	0	0	1	0	0	0	0	0	0
Depreciation	1	1	3	1	1	1	1	1	1	1	1	1	1
Profit before tax	0	0	-17	-19	-3	-3	0	3	5	25	3	5	6
Tax %	180%	-43%	-4%	0%	0%	0%	0%	0%	0%	0%	0%	41%
Net Profit	-0	0	-16	-19	-3	-3	0	3	5	25	3	3	5
EPS in Rs		0.25	-44.08	-52.52	-6.99	-7.10	0.03	8.88	14.04	70.19	9.13	7.74	14.07
Dividend Payout %	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2015-2016	2016-2017	2017-2018	2018-2019	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	-18.75%	84.21%	0.00%	100.00%	66.67%	400.00%	-88.00%	0.00%
Change in YoY Net Profit Growth (%)	0.00%	102.96%	-84.21%	100.00%	-33.33%	333.33%	-488.00%	88.00%

Chennai Ferrous Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2015-2016 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	16%
5 Years:	82%
3 Years:	43%
TTM:	7%

Compounded Profit Growth
10 Years:	41%
5 Years:	80%
3 Years:	-19%
TTM:	93%

Stock Price CAGR
10 Years:	%
5 Years:	84%
3 Years:	9%
1 Year:	1%

Return on Equity
10 Years:	%
5 Years:	%
3 Years:	29%
Last Year:	6%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 1:59 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	4	4	4	4	4	4	4	4	4	4	4	4	4
Reserves	18	18	2	-17	-19	-22	-31	-19	-14	38	42	44	47
Borrowings	2	0	8	9	9	4	32	0	0	0	0	0	0
Other Liabilities	42	45	83	60	61	61	41	30	56	15	103	16	13
Total Liabilities	66	66	97	56	54	47	46	15	46	57	149	64	63
Fixed Assets	19	18	16	14	13	12	10	10	9	35	34	33	33
CWIP	0	0	0	0	0	0	0	0	0	0	0	0	0
Investments	0	0	0	0	0	5	24	3	3	3	11	8	3
Other Assets	46	48	81	42	41	30	11	2	34	20	103	23	28
Total Assets	66	66	97	56	54	47	46	15	46	57	149	64	63

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	-10	0	15	-2	-1	10	-3	0	0	0	9	-2
Cash from Investing Activity +	-6	-0	-0	-0	-0	-5	-22	30	-0	-0	-9	2
Cash from Financing Activity +	16	3	-18	2	-0	-5	27	-32	0	0	-0	-0
Net Cash Flow	1	3	-3	0	-1	0	2	-2	0	0	0	0

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-2.00	-9.00	-22.00	-27.00	-10.00	-5.00	-30.00	4.00	6.00	26.00	1.00	-1.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	131	109	133	190	1,687	462	296	6	177	14	4	10
Inventory Days	220	348	629	131	4,841	70	702	0	60	1	216	0
Days Payable	190	209	953	494	19,961	1,575	15,044		449	60	278
Cash Conversion Cycle	161	247	-192	-173	-13,433	-1,044	-14,045	6	-211	-45	-58	10
Working Capital Days	165	261	-97	-310	-2,714	-1,014	-1,629	-1,202	-139	23	3	21
ROCE %	6%	2%	-94%	-393%						158%	8%	10%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	70.85%	70.85%	70.85%	70.86%	70.86%	70.84%	68.75%	68.70%	68.50%	68.10%	68.04%	67.95%
Public	29.15%	29.15%	29.15%	29.14%	29.14%	29.17%	31.26%	31.30%	31.52%	31.92%	31.97%	32.06%
No. of Shareholders	4,771	5,143	6,248	7,170	7,581	7,770	7,817	7,449	7,191	7,099	7,014	6,961

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	7.74	9.14	70.20	14.04	8.89
Diluted EPS (Rs.)	7.74	9.14	70.20	14.04	8.89
Cash EPS (Rs.)	10.90	12.15	73.22	17.06	11.87
Book Value[Excl.RevalReserv]/Share (Rs.)	59.58	51.84	42.70	-27.50	-41.54
Book Value[Incl.RevalReserv]/Share (Rs.)	133.29	125.54	116.40	-27.50	-41.54
Revenue From Operations / Share (Rs.)	378.48	391.87	265.95	128.79	22.08
PBDIT / Share (Rs.)	16.58	12.21	73.22	17.06	11.89
PBIT / Share (Rs.)	13.42	9.20	70.20	14.04	8.91
PBT / Share (Rs.)	13.14	9.14	70.20	14.04	8.89
Net Profit / Share (Rs.)	7.74	9.14	70.20	14.04	8.89
PBDIT Margin (%)	4.38	3.11	27.53	13.24	53.82
PBIT Margin (%)	3.54	2.34	26.39	10.90	40.34
PBT Margin (%)	3.47	2.33	26.39	10.90	40.24
Net Profit Margin (%)	2.04	2.33	26.39	10.90	40.24
Return on Networth / Equity (%)	12.99	17.62	164.39	-51.05	-21.39
Return on Capital Employeed (%)	9.55	6.93	56.82	-104.95	-25.90
Return On Assets (%)	4.32	2.21	44.25	10.93	21.73
Asset Turnover Ratio (%)	1.28	1.37	1.85	1.52	0.26
Current Ratio (X)	1.66	1.02	1.52	0.66	0.03
Quick Ratio (X)	1.66	0.24	1.50	0.53	0.03
Inventory Turnover Ratio (X)	0.00	0.00	0.00	0.00	1.14
Interest Coverage Ratio (X)	58.76	212.53	46288.32	17874.08	552.36
Interest Coverage Ratio (Post Tax) (X)	28.45	160.13	44377.68	14707.20	414.02
Enterprise Value (Cr.)	36.74	49.04	33.53	1.38	1.89
EV / Net Operating Revenue (X)	0.26	0.34	0.34	0.02	0.23
EV / EBITDA (X)	6.15	11.15	1.27	0.22	0.44
MarketCap / Net Operating Revenue (X)	0.27	0.35	0.35	0.03	0.25
Price / BV (X)	1.77	2.68	2.22	-0.17	-0.13
Price / Net Operating Revenue (X)	0.27	0.35	0.35	0.03	0.25
EarningsYield	0.07	0.06	0.74	2.92	1.56

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Chennai Ferrous Industries Ltd as of December 30, 2024 is: 90.02

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 30, 2024, Chennai Ferrous Industries Ltd is Overvalued by 31.28% compared to the current share price 131.00

Intrinsic Value of Chennai Ferrous Industries Ltd as of December 30, 2024 is: 90.06

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 30, 2024, Chennai Ferrous Industries Ltd is Overvalued by 31.25% compared to the current share price 131.00

Last 5 Year EPS CAGR: 0.04%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a low average Working Capital Days of -6.50, which is a positive sign. The stock has a low average Cash Conversion Cycle of -23.58, which is a positive sign. The company has higher reserves (6.69 cr) compared to borrowings (4.92 cr), indicating strong financial stability. The company has shown consistent growth in sales (53.92 cr) and profit (0.38 cr) over the years.	The stock has a low average ROCE of -25.25%, which may not be favorable.

Stock Analysis

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Chennai Ferrous Industries Ltd:
1. Net Profit Margin: 2.04%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 9.55% (Industry Average ROCE: 19.34%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 12.99% (Industry Average ROE: 18.46%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 28.45
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 1.66
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 10.7 (Industry average Stock P/E: 31.19)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Chennai Ferrous Industries Ltd. is a Public Limited Listed company incorporated on 07/05/2010 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L27310TN2010PLC075626 and registration number is 075626. Currently company belongs to the Industry of Steel - Sponge Iron. Company’s Total Operating Revenue is Rs. 95.86 Cr. and Equity Capital is Rs. 3.60 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Steel - Sponge Iron	Survey No. 180 to 183, 190 & 191, Periya Obulapuram Village, Naga Madharapakkam Road, Thiruvallur Tamil Nadu 601201	chennaiferrous@gmail.com http://www.chennaiferrous.com

Management
Name	Position Held
Mr. R Natarajan	Chairman & Managing Director
Mrs. Mohan Chitra	Non Exe. & Ind. Director
Mr. Nagarajan Ramakrishnan	Ind. Non-Executive Director
Mr. Muthaiyan Saravanan	Ind. Non-Executive Director

FAQ

What is the latest intrinsic value of Chennai Ferrous Industries Ltd?

The latest intrinsic value of Chennai Ferrous Industries Ltd as on 30 December 2024 is ₹90.02, which is 31.28% lower than the current market price of ₹131.00. The stock has a market capitalization of 47.4 Cr. and recorded a high/low of 175/103 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹47 Cr and total liabilities of ₹63 Cr.

What is the Market Cap of Chennai Ferrous Industries Ltd?

The Market Cap of Chennai Ferrous Industries Ltd is 47.4 Cr..

What is the current Stock Price of Chennai Ferrous Industries Ltd as on 30 December 2024?

The current stock price of Chennai Ferrous Industries Ltd as on 30 December 2024 is 131.

What is the High / Low of Chennai Ferrous Industries Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Chennai Ferrous Industries Ltd stocks is 175/103.

What is the Stock P/E of Chennai Ferrous Industries Ltd?

The Stock P/E of Chennai Ferrous Industries Ltd is 10.7.

What is the Book Value of Chennai Ferrous Industries Ltd?

The Book Value of Chennai Ferrous Industries Ltd is 141.

What is the Dividend Yield of Chennai Ferrous Industries Ltd?

The Dividend Yield of Chennai Ferrous Industries Ltd is 0.00 %.

What is the ROCE of Chennai Ferrous Industries Ltd?

The ROCE of Chennai Ferrous Industries Ltd is 10.2 %.

What is the ROE of Chennai Ferrous Industries Ltd?

The ROE of Chennai Ferrous Industries Ltd is 5.85 %.

What is the Face Value of Chennai Ferrous Industries Ltd?

The Face Value of Chennai Ferrous Industries Ltd is 10.0.