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Last Updated on: 06 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Indian Metals & Ferro Alloys Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 24, 2024, 11:24 am

Market Cap 3,569 Cr.
Current Price 662
High / Low880/387
Stock P/E9.53
Book Value 393
Dividend Yield2.25 %
ROCE23.8 %
ROE18.3 %
Face Value 10.0
PEG Ratio0.07

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

View Share Price Target for Indian Metals & Ferro Alloys Ltd

Competitors of Indian Metals & Ferro Alloys Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of Indian Metals & Ferro Alloys Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales425576538653655757743672624637702693685
Expenses357447365417443568526600565498529542526
Operating Profit681291732362121892187359139173150159
OPM %16%22%32%36%32%25%29%11%9%22%25%22%23%
Other Income512453574-1-1101210
Interest12161613151621231398138
Depreciation26272425263525262829252615
Profit before tax3598137204175143179291799149123146
Tax %7%33%27%29%30%-0%25%43%34%35%26%27%25%
Net Profit33659914412214313416116411189109
EPS in Rs6.0012.1118.3326.5922.6126.4324.853.022.0111.8720.4616.5320.14

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,1931,2731,3181,3451,2111,6721,7661,6341,6121,8442,6032,6762,655
Expenses9661,0181,0311,1041,0881,1591,3331,3611,5231,5071,7932,1882,134
Operating Profit22725528724112351343227289338810488521
OPM %19%20%22%18%10%31%24%17%6%18%31%18%20%
Other Income6-11713-14827-62215017919
Interest8369105106818375949755596644
Depreciation568214912211410910198104104110107107
Profit before tax941025026-7336928319-91228658324389
Tax %34%48%30%84%40%33%34%103%27%27%23%30%
Net Profit6253354-44249187-1-66167508226275
EPS in Rs11.8510.166.720.71-8.4746.1034.46-0.19-12.3130.8494.0141.7550.87
Dividend Payout %21%25%22%106%-12%22%22%-1,323%0%16%13%24%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-14.52%-33.96%-88.57%-1200.00%665.91%-24.90%-100.53%-6500.00%353.03%204.19%-55.51%
Change in YoY Net Profit Growth (%)0.00%-19.45%-54.61%-1111.43%1865.91%-690.81%-75.64%-6399.47%6853.03%-148.84%-259.70%

Indian Metals & Ferro Alloys Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:11%
3 Years:15%
TTM:4%
Compounded Profit Growth
10 Years:27%
5 Years:67%
3 Years:32%
TTM:82%
Stock Price CAGR
10 Years:20%
5 Years:49%
3 Years:22%
1 Year:63%
Return on Equity
10 Years:12%
5 Years:16%
3 Years:21%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital262626262727272727545454
Reserves8248558558071,0371,1891,1431,0571,2151,6611,8192,066
Borrowings1,1001,0881,1281,060910822766713679490341184
Other Liabilities390467539501530614719617620616440527
Total Liabilities2,3402,4362,5482,3942,5042,6522,6552,4142,5412,8212,6542,832
Fixed Assets1,2331,3411,3721,3301,2751,2561,1771,2161,1551,111990997
CWIP3422171932262362733042642482677078
Investments24120351611486933120155264372
Other Assets7418669838038329741,1049011,0191,2901,3301,385
Total Assets2,3402,4362,5482,3942,5042,6522,6552,4142,5412,8212,6542,832

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 212226174218485290217221207390151512
Cash from Investing Activity -244-107-43-101-162-88-31-49-106-106140-209
Cash from Financing Activity 70-162-113-161-322-191-187-182-99-284-291-259
Net Cash Flow38-4318-44210-2-112-0144

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow227.00254.00286.00240.00122.00-397.00-390.00-494.00-624.00-341.00320.00147.00

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

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days1316144151311718201211
Inventory Days171218208177176192256168174207162177
Days Payable6795867461881287274495259
Cash Conversion Cycle118138137107130117140103118178122129
Working Capital Days7088612240525032727911793
ROCE %10%8%7%1%23%17%9%0%14%34%18%24%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters58.69%58.69%58.69%58.69%58.69%58.69%58.69%58.69%58.69%58.69%58.69%58.69%
FIIs1.09%1.07%1.30%1.32%1.25%1.40%1.67%2.47%2.93%2.88%2.89%3.10%
DIIs0.00%0.01%0.01%0.01%0.01%0.01%0.08%0.09%0.10%0.10%1.36%0.92%
Public40.22%40.24%40.00%39.98%40.04%39.89%39.55%38.74%38.29%38.34%37.06%37.30%
No. of Shareholders37,09541,05442,90944,30945,59243,84044,43942,94747,70547,63650,85051,525

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Microcap 250 Index Fund14,9820.140.6514,9822024-10-270%
Groww Nifty Total Market Index Fund340014,9822024-10-27-99.77%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)73.1241.7594.0161.74-24.65
Diluted EPS (Rs.)73.1241.7594.0161.74-24.65
Cash EPS (Rs.)83.4761.72114.51100.5214.17
Book Value[Excl.RevalReserv]/Share (Rs.)394.35352.71323.53471.57413.09
Book Value[Incl.RevalReserv]/Share (Rs.)394.35352.71323.53471.57413.09
Revenue From Operations / Share (Rs.)515.23496.00482.38683.55597.46
PBDIT / Share (Rs.)116.5895.03153.23143.6140.81
PBIT / Share (Rs.)102.1275.15132.81104.982.19
PBT / Share (Rs.)95.6560.02121.8884.68-33.65
Net Profit / Share (Rs.)69.0141.8494.0961.89-24.45
NP After MI And SOA / Share (Rs.)73.1141.7494.0061.73-24.64
PBDIT Margin (%)22.6219.1531.7621.006.83
PBIT Margin (%)19.8215.1527.5315.350.36
PBT Margin (%)18.5612.1025.2612.38-5.63
Net Profit Margin (%)13.398.4319.509.05-4.09
NP After MI And SOA Margin (%)14.198.4119.489.03-4.12
Return on Networth / Equity (%)18.6012.0229.5713.41-6.13
Return on Capital Employeed (%)25.2420.3936.4915.730.35
Return On Assets (%)13.938.4817.976.55-2.75
Long Term Debt / Equity (X)0.000.000.010.230.31
Total Debt / Equity (X)0.070.170.270.460.56
Asset Turnover Ratio (%)1.010.980.970.740.63
Current Ratio (X)2.562.261.321.220.93
Quick Ratio (X)1.461.280.590.610.34
Inventory Turnover Ratio (X)2.132.322.082.071.92
Dividend Payout Ratio (NP) (%)37.6029.936.384.850.00
Dividend Payout Ratio (CP) (%)31.3920.285.242.980.00
Earning Retention Ratio (%)62.4070.0793.6295.150.00
Cash Earning Retention Ratio (%)68.6179.7294.7697.020.00
Interest Coverage Ratio (X)18.007.7814.027.071.14
Interest Coverage Ratio (Post Tax) (X)11.664.669.614.050.31
Enterprise Value (Cr.)3532.681850.722720.011774.15902.18
EV / Net Operating Revenue (X)1.270.691.040.960.55
EV / EBITDA (X)5.623.613.294.588.19
MarketCap / Net Operating Revenue (X)1.240.570.850.660.18
Retention Ratios (%)62.3970.0693.6195.140.00
Price / BV (X)1.630.811.300.980.28
Price / Net Operating Revenue (X)1.240.570.850.660.18
EarningsYield0.110.140.220.13-0.21

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Indian Metals & Ferro Alloys Ltd as of November 6, 2024 is: 700.81

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 November 6, 2024, Indian Metals & Ferro Alloys Ltd is Undervalued by 5.86% compared to the current share price ₹662.00

Intrinsic Value of Indian Metals & Ferro Alloys Ltd as of November 6, 2024 is: 1,610.94

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 November 6, 2024, Indian Metals & Ferro Alloys Ltd is Undervalued by 143.34% compared to the current share price ₹662.00

Last 5 Year EPS CAGR: 129.87%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,210.67 cr) compared to borrowings (773.42 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (1.23 cr) and profit (182.92 cr) over the years.
  1. The stock has a low average ROCE of 13.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 64.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 128.08, 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 Indian Metals & Ferro Alloys Ltd:
    1. Net Profit Margin: 13.39%
      • 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: 25.24% (Industry Average ROCE: 0.59%)
      • 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%: 18.6% (Industry Average ROE: 0.49%)
      • 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): 11.66
      • 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: 1.46
      • 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: 9.53 (Industry average Stock P/E: 0)
      • 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: 0.07
      • 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

Indian Metals & Ferro Alloys Ltd. is a Public Limited Listed company incorporated on 20/11/1961 and has its registered office in the State of Orissa, India. Company’s Corporate Identification Number(CIN) is L27101OR1961PLC000428 and registration number is 000428. Currently Company is involved in the business activities of Manufacture of textiles. Company’s Total Operating Revenue is Rs. 2602.95 Cr. and Equity Capital is Rs. 53.96 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Ferro AlloysIMFA Building, Bomikhal, Bhubaneshwar Orissa 751010mail@imfa.in
http://www.imfa.in
Management
NamePosition Held
Mr. Nalini Ranjan MohantyNon Executive Chairman
Mr. Baijayant PandaVice Chairman
Mr. Subhrakant PandaManaging Director
Mr. Chitta Ranjan RayWhole Time Director
Mr. Bijoy Kumar DasIndependent Director
Mrs. Latha RavindranIndependent Director
Dr. Barada Kanta MishraIndependent Director
Mr. Stefan Georg AmreinDirector

FAQ

What is the latest fair value of Indian Metals & Ferro Alloys Ltd?

The latest fair value of Indian Metals & Ferro Alloys Ltd is ₹700.81.

What is the Market Cap of Indian Metals & Ferro Alloys Ltd?

The Market Cap of Indian Metals & Ferro Alloys Ltd is 3,569 Cr..

What is the current Stock Price of Indian Metals & Ferro Alloys Ltd as on 06 November 2024?

The current stock price of Indian Metals & Ferro Alloys Ltd as on 06 November 2024 is 662.

What is the High / Low of Indian Metals & Ferro Alloys Ltd stocks in FY 2024?

In FY 2024, the High / Low of Indian Metals & Ferro Alloys Ltd stocks is 880/387.

What is the Stock P/E of Indian Metals & Ferro Alloys Ltd?

The Stock P/E of Indian Metals & Ferro Alloys Ltd is 9.53.

What is the Book Value of Indian Metals & Ferro Alloys Ltd?

The Book Value of Indian Metals & Ferro Alloys Ltd is 393.

What is the Dividend Yield of Indian Metals & Ferro Alloys Ltd?

The Dividend Yield of Indian Metals & Ferro Alloys Ltd is 2.25 %.

What is the ROCE of Indian Metals & Ferro Alloys Ltd?

The ROCE of Indian Metals & Ferro Alloys Ltd is 23.8 %.

What is the ROE of Indian Metals & Ferro Alloys Ltd?

The ROE of Indian Metals & Ferro Alloys Ltd is 18.3 %.

What is the Face Value of Indian Metals & Ferro Alloys Ltd?

The Face Value of Indian Metals & Ferro Alloys Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Indian Metals & Ferro Alloys Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE