The shares of the Largest ferroalloy producer zoomed over 13 percent to a 52-week high price of Rs 443.65 on Monday after the company announced that it will receive Rs 417 crore in compensation from the coal ministry for its subsidiary Utkal Coal Ltd. 

At 3:25 p.m. Indian Metals & Ferro Alloys Ltd shares were trading at Rs 429.10 per share, up Rs 38.85 or 9.95 percent on the National Stock Exchange from the previous close price. The company has a market capitalization of Rs 2,305 crore. 

The coal ministry has estimated compensation for land related to Utkal ‘C’ coal mines at Rs 416.71 crore, payable to Utkal Coal Ltd. The successful allottee has been advised to deposit this amount within seven days, Further, the valuation for mine infrastructure compensation is still in progress. According to the company report 

In December 2022, Indian Metals notified exchanges that Utkal Coal had received Rs 20.69 crore in compensation from the coal ministry for statutory expenditures associated with the Utkal ‘C’ block, following the issuance of its vesting order to the new allottee. 

As of the June 2023-24 quarter, Mukul Mahavir Agrawal holds 7,78,900 shares in the company, or 1.44 percent. 

The company’s revenue has decreased by 5 percent yearly, from Rs 743 crore in Q1FY23 to Rs 701 crore in Q1FY24. In the same time frame, the company’s net profit declined by 18 percent, from Rs 134 crore to Rs 110 crore. 

Indian Metals & Ferro Alloys shares have delivered returns of 54 percent in six months and 75 percent in a year. 

In the recent financial year, the company reported a net profit margin of 8.43 percent and an operating margin of 15.15 percent. 

Indian Metals and Ferro Alloys Limited (IMFA) is a fully integrated manufacturer of Ferro Chrome, which is primarily used in the manufacture of stainless steel. The company manufactures Ferro Chrome, Ferro Silicon, High Purity Ferro Silicon, and Ferro Silicon Magnesium for both the local and international markets.

Written by Omkar Chitnis


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