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

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Indian Metals & Ferro Alloys Ltd.

(NSE:IMFA)

Select Model

Rating:55Neutral

Price Target:INR 1,143.00▲(2.05% Upside)

Action:reiterated

Date:08/29/26

The score is held back mainly by deteriorating cash-flow quality (negative free cash flow) and increased debt in FY2026, which raises near-term financial risk despite still-solid profitability. Technicals are also weak with bearish moving-average positioning and negative MACD, though oversold readings modestly temper the downside. Valuation is reasonable with a mid-range P/E, but the low dividend yield offers limited support.

Positive Factors

Integrated Business ModelVertical integration across chrome mining, power generation, and smelting gives IMFA control over key production stages and supports operational resilience. Supplying domestic and international stainless-steel customers also provides a diversified route to market within an established metals value chain.

Negative Factors

Negative Free Cash FlowThe shift to deeply negative free cash flow is a material deterioration in cash-generation quality, especially because prior years were strongly positive. Persistent cash shortfalls could constrain reinvestment, debt reduction, and shareholder returns unless operating cash conversion improves.

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

Market Cap: INR 66.39B
Dividend Yield: 1.12%
Average Volume (3M): 5,433
Price to Earnings (P/E): 10.5
Beta (1Y): 1.32
Revenue Growth: 32.06%
EPS Growth: 73.89%
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

Income statement profitability is solid (Income Statement Score 72) with ~15% net margins and revenue up ~9.9% YoY, but margins compressed materially (gross margin ~35.7% vs ~45.6% prior year). Balance sheet leverage remains reasonable (Balance Sheet Score 68; debt-to-equity ~0.35), yet risk increased as total debt jumped sharply in FY2026. The biggest drag is cash generation (Cash Flow Score 41): operating cash flow fell and free cash flow turned deeply negative (~-10.4B), raising near-term financial risk.

Income Statement

72Positive

Balance Sheet

68Positive

Cash Flow

41Neutral

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 Price1120.00

Price Trends

50DMA1196.64Negative

100DMA1293.33Negative

200DMA1320.81Negative

Market Momentum

MACD-25.34Negative

RSI43.48Neutral

STOCH41.13Neutral

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 1120.00 is below the 20-day moving average (MA) of 1124.16, below the 50-day MA of 1196.64, and below the 200-day MA of 1320.81, indicating a bearish trend. The MACD of -25.34 indicates Negative momentum. The RSI at 43.48 is Neutral, neither overbought nor oversold. The STOCH value of 41.13 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:SHYAMMETL	75Outperform	INR 368.45B	27.41	―	0.34%	25.70%	39.54%
IN:SANDUMA	72Outperform	INR 85.80B	10.49	―	0.28%	20.70%	40.12%
IN:JAYNECOIND	66Neutral	INR 87.15B	12.63	―	―	18.34%	82.81%
IN:MAITHANALL	66Neutral	INR 24.75B	8.52	―	2.00%	0.82%	-59.07%
IN:MIDHANI	66Neutral	INR 74.14B	54.94	―	0.53%	18.17%	13.88%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:IMFA	55Neutral	INR 60.19B	10.52	―	1.12%	32.06%	73.89%

* 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.	1120.00	-185.29	-14.20%
IN:JAYNECOIND	Jayaswal Neco Industries Limited	89.83	13.60	17.84%
IN:MAITHANALL	Maithan Alloys Ltd.	849.10	-239.54	-22.00%
IN:MIDHANI	Mishra Dhatu Nigam Ltd.	396.55	16.37	4.30%
IN:SANDUMA	Sandur Manganese & Iron Ores Ltd	179.90	-39.01	-17.82%
IN:SHYAMMETL	Shyam Metalics & Energy Ltd.	1331.40	482.09	56.76%

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