Indian Metals & Ferro Alloys Ltd. (IMFA) AI Stock Analysis

Indian Metals & Ferro Alloys Ltd.

(NSE:IMFA)

Select Model

Rating:59Neutral

Price Target:INR 1,140.00▲(4.48% Upside)

Action:reiterated

Date:08/29/26

The overall score of 59 reflects a company in a heavy investment phase with significant near-term risks. The primary drag is the weak cash flow, with deeply negative free cash flow raising liquidity concerns despite solid profitability. This is compounded by bearish technicals, with the stock trading below key moving averages and showing strong downward momentum. A moderate P/E of 14.1 provides some valuation support, but it is not enough to offset the financial and technical headwinds.

Positive Factors

Integrated OperationsVertical integration across chrome ore, power generation, and smelting supports control over key production inputs and can improve operating resilience. This structure may help IMFA serve domestic and international stainless-steel customers through different parts of the metals cycle.

Negative Factors

Negative Free Cash FlowA sharply negative free-cash-flow result weakens the quality of reported earnings because profits were not converted into available cash. If sustained, this can reduce funding flexibility, increase reliance on borrowing, and constrain investment or shareholder distributions.

Indian Metals & Ferro Alloys Ltd. (IMFA) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 66.39B
Dividend Yield: 1.14%
Average Volume (3M): 7,076
Price to Earnings (P/E): 11.2
Beta (1Y): 1.60
Revenue Growth: 23.64%
EPS Growth: 46.48%
Country: India
Employees: 6,240
Sector: General
Sector Strength: 55
Industry: Industrial Materials

Indian Metals & Ferro Alloys Ltd. Business Overview & Revenue Model

Company Description

Indian Metals and Ferro Alloys Limited engages in the production and sale of ferro chrome in India and internationally. It operates through three segments: Ferro Alloys, Power, and Mining segments. The company operates a power generation plant with a...

Indian Metals & Ferro Alloys Ltd. Financial Statement Overview

Summary

Mixed financials: Strong income statement (Score 78) with 9.9% revenue growth and 15% net margin, and a solid balance sheet (Score 72) with manageable 0.35 debt-to-equity. However, cash flow is a significant concern (Score 45) due to negative free cash flow of INR -10,400M and a low operating cash flow coverage ratio of 0.25, driven by heavy capex.

Income Statement

78Positive

Balance Sheet

72Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	31.45B	28.26B	25.65B	27.43B	26.39B	25.65B
Gross Profit	11.84B	10.08B	11.69B	11.55B	6.75B	13.93B
EBITDA	7.99B	6.52B	5.30B	6.09B	4.64B	8.13B
Net Income	5.24B	4.24B	3.79B	3.44B	2.25B	5.07B
Balance Sheet
Total Assets	0	43.17B	31.77B	28.32B	26.54B	28.21B
Cash, Cash Equivalents and Short-Term Investments	4.15B	4.17B	9.30B	4.50B	2.78B	1.62B
Total Debt	0	9.58B	3.89B	2.37B	3.41B	4.90B
Total Liabilities	-27.26B	15.90B	8.20B	7.04B	7.50B	10.76B
Stockholders Equity	27.26B	27.18B	23.48B	21.20B	18.73B	17.15B
Cash Flow
Free Cash Flow	682.00M	-10.40B	4.70B	3.99B	1.51B	3.03B
Operating Cash Flow	3.31B	2.95B	5.85B	5.12B	1.51B	3.90B
Investing Cash Flow	-3.29B	-7.63B	-5.62B	-2.09B	1.40B	-1.06B
Financing Cash Flow	35.60M	4.95B	-679.30M	-2.59B	-2.91B	-2.84B

Indian Metals & Ferro Alloys Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1091.10

Price Trends

50DMA1236.31Negative

100DMA1313.55Negative

200DMA1324.60Negative

Market Momentum

MACD-42.16Positive

RSI32.26Neutral

STOCH29.73Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IMFA, the sentiment is Negative. The current price of 1091.10 is below the 20-day moving average (MA) of 1146.21, below the 50-day MA of 1236.31, and below the 200-day MA of 1324.60, indicating a bearish trend. The MACD of -42.16 indicates Positive momentum. The RSI at 32.26 is Neutral, neither overbought nor oversold. The STOCH value of 29.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:IMFA.

Indian Metals & Ferro Alloys Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:IMFA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:SANDUMA	74Outperform	INR 78.75B	10.96	―	0.31%	45.22%	45.66%
IN:MAITHANALL	72Outperform	INR 22.51B	7.75	―	2.20%	0.82%	-59.07%
IN:JAYNECOIND	64Neutral	INR 84.60B	12.26	―	―	18.34%	82.81%
IN:IMFA	59Neutral	INR 58.87B	11.23	―	1.14%	23.64%	46.48%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:MIDHANI	53Neutral	INR 67.58B	50.03	―	0.58%	18.17%	13.88%
IN:SHYAMMETL	51Neutral	INR 324.85B	28.86	―	0.38%	22.76%	21.47%

* General Sector Average

Performance Comparison

IN:IMFA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:IMFA	Indian Metals & Ferro Alloys Ltd.	1091.10	-106.25	-8.87%
IN:JAYNECOIND	Jayaswal Neco Industries Limited	87.13	9.04	11.58%
IN:MAITHANALL	Maithan Alloys Ltd.	773.30	-319.42	-29.23%
IN:MIDHANI	Mishra Dhatu Nigam Ltd.	360.75	-28.68	-7.37%
IN:SANDUMA	Sandur Manganese & Iron Ores Ltd	162.00	-63.10	-28.03%
IN:SHYAMMETL	Shyam Metalics & Energy Ltd.	1163.80	264.96	29.48%

Indian Metals & Ferro Alloys Ltd. Corporate Events

IMFA Posts Strong Q1 FY27 Results With Robust Ferro Chrome Output

Aug 5, 2026

Indian Metals & Ferro Alloys Ltd. published its unaudited standalone and consolidated financial results for the quarter ended 30 June 2026, reporting total consolidated income of about ₹973 crore and post-tax profit of about ₹193 cror...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 29, 2026

Indian Metals & Ferro Alloys Ltd. AI Stock Analysis