Share price of this small-cap metal stock moved up by nearly 4.21 percent to Rs. 666.95 on BSE in the trading session of Monday, compared to the previous closing price of Rs. 640, after the company’s Board declared a special dividend and approved Rs. 200 crore investment in Ethanol business.
With a market cap of Rs. 3,505.4 crore, at 02:04 p.m. the shares of Indian Metals and Ferro Alloys Limited (IMFA) were trading in the green at Rs. 650.3, up by nearly 1.67 percent.
The company has delivered about 125.8 percent of multibagger returns in the last one year and nearly 55.3 percent in the last six months. So far in 2024, it has given positive returns of around 25.6 percent.
According to the recent filings on the stock exchanges, the Board of Directors of the company announced a special dividend of Rs. 15 per equity share of Rs. 10 each for the financial year ending 31st March 2024.
The record date for the eligible shareholders to receive the Special Dividend shall be 8th April 2024 and will be paid on or before 27th April 2024.
Additionally, the IMFA’s Board approved investments of an estimated Rs. 200 crore to be made in the ethanol business and its related byproducts.
Along with this, the Board also approved the withdrawal of the Scheme of Amalgamation of Utkal Coal Limited (UCL) with and into Indian Metals & Ferro Alloys Limited and their respective shareholders from the BSE and NSE.
IMFA plans to acquire the remaining shares of UCL in order to make it a wholly-owned subsidiary of the company. Currently, the company holds a 79.2 percent stake in UCL.
The Board further approved the write-off of doubtful interest income on a loan of Rs. 110.75 crores issued to its Subsidiary Company, Utkal Coal Limited, and accounting for impairment provision of Rs. 111.42 crores against the investment value made by the company in UCL.
In terms of financials, the company’s revenue from operations grew by nearly 9.7 percent YoY from Rs. 624 crore in Q3 FY22-23 to Rs. 685 crore in Q3 FY23-24. Further, the net profit also increased by 890.9 percent YoY, from Rs. 11 crore in Q3 FY22-23 to Rs. 109 crore in Q3 FY23-24.
As of December 2023, FIIs hold 2.93 percent of the shares, while DIIs hold 0.1 percent of the shares in the company, aggregating to 3.03 percent of the institutional holdings.
Established in 1961, Indian Metals and Ferro Alloys Limited is India’s largest producer of ferro chrome and extensive chrome ore mining tracts. The company’s ferro chrome output is primarily exported to Korea, China, Japan and Taiwan.
Written by Shivani Singh
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