ScoreWhy is Indian Metals & Ferro Alloys Ltd ?
1
Company has a Debt to Equity ratio (avg) of 0.08 times
2
Poor long term growth as Net Sales has grown by an annual rate of 9.73% and Operating profit at 14.36% over the last 5 years
3
Positive results in Jun 26
- OPERATING PROFIT TO INTEREST(Q) Highest at 22.57 times
- NET SALES(Q) Highest at Rs 960.45 cr
- PBDIT(Q) Highest at Rs 281.27 cr.
4
With ROCE of 16.1, it has a Very Expensive valuation with a 2.6 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 103.90%, its profits have risen by 46.5% ; the PEG ratio of the company is 0.3
5
Despite the size of the company, domestic mutual funds hold only 0.24% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
6
Consistent Returns over the last 3 years
- Along with generating 103.90% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Indian Metals should be less than 10%
- Overall Portfolio exposure to Ferrous Metals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Indian Metals for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Indian Metals
103.9%
2.06
50.33%
Sensex
-2.63%
-0.19
13.57%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.73%
EBIT Growth (5y)
14.36%
EBIT to Interest (avg)
12.99
Debt to EBITDA (avg)
0.79
Net Debt to Equity (avg)
0.20
Sales to Capital Employed (avg)
1.06
Tax Ratio
23.57%
Dividend Payout Ratio
15.90%
Pledged Shares
0
Institutional Holding
4.46%
ROCE (avg)
25.07%
ROE (avg)
18.04%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
12
Price to Book Value
2.91
EV to EBIT
12.58
EV to EBITDA
11.37
EV to Capital Employed
2.59
EV to Sales
2.69
PEG Ratio
0.32
Dividend Yield
0.85%
ROCE (Latest)
16.09%
ROE (Latest)
15.61%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend29What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 22.57 times
NET SALES(Q)
Highest at Rs 960.45 cr
PBDIT(Q)
Highest at Rs 281.27 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 29.29%
PBT LESS OI(Q)
Highest at Rs 245.40 cr.
PAT(Q)
Highest at Rs 192.34 cr.
EPS(Q)
Highest at Rs 35.64
-15What is not working for the Company
OPERATING CF(Y)
Lowest at Rs 318.80 Cr
ROCE(HY)
Lowest at 16.05%
DEBT-EQUITY RATIO(HY)
Highest at 0.35 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 11.82 times
INTEREST(Q)
Highest at Rs 12.46 cr
Loading Valuation Snapshot...
Here's what is working for Indian Metals
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 245.40 cr has Grown at 100.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 122.14 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 192.34 cr has Grown at 81.3% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 106.07 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 22.57 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Quarterly
Highest at Rs 960.45 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 960.45 cr has Grown at 35.9% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 706.58 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 281.27 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 29.29%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 245.40 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 192.34 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 35.64
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Indian Metals
Debt-Equity Ratio - Half Yearly
Highest at 0.35 times and Grown
each half year in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Operating Cash Flow - Annually
Lowest at Rs 318.80 Cr
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (Rs Cr)
Interest - Quarterly
Highest at Rs 12.46 cr
in the last five quarters and Increased by 10.36 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debtors Turnover Ratio- Half Yearly
Lowest at 11.82 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
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