IMFA Rated ‘Buy’ As Anand Rathi Initiates Coverage— Check Target Price

Anand Rathi has initiated coverage on Indian Metals and Ferro Alloys Ltd. with a 'Buy' rating and target price of Rs 1,510.

The brokerage believes that IMFA is the largest fully integrated value-added ferrochrome producer in India. The company is raising production capacity of 35%, from 284,000 tonnes to 384,000 tonnes with a greenfield ferrochrome plant at Kalinganagar expected by mid-2026.

Anand Rathi also highlighted that the company has received in-principle approval to expand capacity further by 200,000 tonnes.

The brokerage further noted that, Indian Metals & Ferro Alloys is a growth story driven by capacity expansion and rising demand for stainless steel.

The brokerage noted that more than 80% of the demand for ferrochrome, a key input in stainless steel production, comes from the industry itself. It added that IMFA’s value-accretive diversification strategy is expected to generate Rs 300 crore in annual revenue, with an Ebitda margin of 8–10%, positioning the company well for sustained growth.

"Besides, leveraging the available land bank and bulk raw material handling infrastructure at Therubali, it is setting up a 120kL per day ethanol plant," it said.

IMFA is expected to strengthen its leading position as the largest ferrochrome manufacturer in India by more than doubling its installed capacity to 584,000 tonnes in two phases, the brokerage noted.

"Demand in India for ferrochrome is expected to rise further as stainless steel consumption grows, backed by urbanisation, government initiatives to boost manufacturing and infrastructure, and greater demand from automotives, railways, etc," the brokerage said.

Anand Rathi also noted that, with limited ferrochrome imports to India, higher costs faced by non-integrated players and the proposed imposition of an export tax on chrome ore by South Africa, further volumes at Kalinganagar would be redirected to domestic consumption