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Chaman Metallics Overview

1. Business Overview

Chaman Metallics Ltd. (CMNL) operates in the primary steel sector, primarily involved in the manufacturing and sale of intermediate iron products such. Its core business focuses on producing Sponge Iron (also known as Direct Reduced Iron or DRI) and/or Pig Iron. Sponge iron is a raw material for steel production, often used in electric arc furnaces (EAFs) and induction furnaces (IFs) by secondary steel producers. Pig iron, another intermediate product, is produced in blast furnaces and serves as a key raw material for both steelmaking and foundry applications. The company generates revenue by selling these essential building blocks to various steel manufacturers and foundries.

2. Key Segments / Revenue Mix

Given the company's sector description, its primary revenue stream is derived from the manufacturing and sale of Sponge Iron and/or Pig Iron. Without specific financial disclosures, a precise breakdown of revenue contribution between these two products or any other ancillary segments is not available. It is likely that one of these forms the dominant product line.

3. Industry & Positioning

The Indian Steel/Sponge Iron/Pig Iron industry is a vital, capital-intensive, and cyclical sector. It is characterized by high raw material dependence (iron ore, coal/coke) and energy costs. The industry has a mix of large integrated steel players and numerous standalone sponge iron and pig iron units. As a company focused on intermediate products, CMNL operates within a commodity market. Its positioning likely places it as a mid-to-small scale player, supplying to secondary steel producers or non-integrated steel mills, competing on cost efficiency, product quality, and regional supply capabilities.

4. Competitive Advantage (Moat)

In the highly commoditized sponge iron and pig iron market, durable competitive advantages (moats) are challenging to establish. Potential areas for competitive advantage include:

Cost Leadership: Achieved through efficient operations, captive raw material sources (e.g., iron ore mines, coal linkages), access to low-cost power, or superior logistics.

Location Advantage: Proximity to key raw materials or a concentrated customer base, reducing transportation costs.

Operational Efficiency: Continuous improvement in production processes to achieve higher yields and lower operating expenses.

Without specific information, CMNL's ability to demonstrate a strong, sustainable moat is difficult to ascertain, and it likely competes primarily on cost and market access.

5. Growth Drivers

Infrastructure Development: Government-led initiatives in infrastructure, construction, and housing are significant demand drivers for steel and its intermediate products.

Urbanization & Industrialization: Continued economic growth, urbanization, and industrial expansion in India will sustain and increase the demand for steel.

Automotive & Manufacturing Sector Revival: Growth in end-user industries like automotive, white goods, and capital goods contributes to steel consumption.

Capacity Expansion: Any company-specific plans for increasing production capacity of sponge iron or pig iron.

Raw Material Security: Successful long-term sourcing strategies for iron ore and coal/coke at competitive prices.

6. Risks

Commodity Price Volatility: Prices of sponge iron and pig iron are cyclical and highly sensitive to global and domestic demand-supply dynamics and raw material costs.

Raw Material Price Fluctuations: Volatility in prices of key inputs like iron ore, coal, and coke directly impacts profitability.

Energy Costs: Being an energy-intensive industry, fluctuations in power tariffs and fuel costs pose a significant risk.

Regulatory & Environmental Risks: Stricter environmental norms, changes in mining policies, and other regulations can increase operational costs.

Economic Slowdown: A general economic downturn or slowdown in core industrial sectors can significantly dampen demand for steel products.

Competition: Intense competition from both domestic and international players, including larger, integrated steel mills.

7. Management & Ownership

As an Indian "Ltd." company, it is typical for Chaman Metallics Ltd. to be promoter-driven, often implying family control and management at the top levels. Promoters generally hold a significant equity stake, indicating a long-term commitment to the business. The quality of management would depend on their experience in the steel sector, operational efficiency, financial prudence, and corporate governance practices, none of which are specifically detailed here.

8. Outlook

Chaman Metallics operates in a foundational but cyclical sector in India. The long-term outlook for the Indian steel industry remains positive, driven by strong domestic demand from infrastructure development, manufacturing growth, and urbanization. For CMNL, this presents opportunities for sustained demand for its sponge iron and pig iron products. However, the company's performance will be heavily influenced by its ability to manage input costs effectively, navigate volatile commodity prices, and maintain operational efficiency. The inherent risks of a commodity business, including price fluctuations, raw material availability, and regulatory changes, will continue to be critical factors shaping its profitability and growth trajectory. Its success will hinge on strategic sourcing, cost optimization, and efficient capacity utilization amidst evolving market dynamics.

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Chaman Metallics Key Financials

Market Cap ₹290 Cr.

Stock P/E 29.7

P/B 2.9

Current Price ₹120.4

Book Value ₹ 41.2

Face Value 10

52W High ₹183.9

Dividend Yield 0%

52W Low ₹ 90

Chaman Metallics Share Price

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Volume
Price

Chaman Metallics Quarterly Price

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Chaman Metallics Peer Comparison

Chaman Metallics Quarterly Results

#(Fig in Cr.)
Net Sales
Other Income
Total Income
Total Expenditure
Operating Profit
Interest
Depreciation
Exceptional Income / Expenses
Profit Before Tax
Provision for Tax
Profit After Tax
Adjustments
Profit After Adjustments
Adjusted Earnings Per Share

Chaman Metallics Profit & Loss

#(Fig in Cr.) Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 TTM
Net Sales 58 141 185 228 189 172
Other Income 0 0 1 1 2 2
Total Income 58 141 185 229 191 174
Total Expenditure 58 130 170 202 171 157
Operating Profit 0 11 16 27 20 17
Interest 1 2 2 2 2 2
Depreciation 1 2 2 2 2 2
Exceptional Income / Expenses 0 -0 0 0 -0 0
Profit Before Tax -2 7 12 23 16 13
Provision for Tax -6 2 4 6 4 3
Profit After Tax 4 5 8 17 13 10
Adjustments 0 0 0 0 0 0
Profit After Adjustments 4 5 8 17 13 10
Adjusted Earnings Per Share 2.1 2.9 4.6 7.1 5.2 4.1

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR -9% -2% 24% 0%
Operating Profit CAGR -15% 2% 0% 0%
PAT CAGR -23% 8% 20% 0%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR -23% 30% NA% NA%
ROE Average 10% 18% 20% 19%
ROCE Average 4% 16% 19% 15%

Chaman Metallics Balance Sheet

#(Fig in Cr.) Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Shareholder's Funds 24 29 38 77 90 99
Minority's Interest 0 0 0 0 0 0
Borrowings 15 6 15 17 118 294
Other Non-Current Liabilities -2 0 3 3 4 3
Total Current Liabilities 16 24 18 19 30 104
Total Liabilities 52 59 74 116 242 501
Fixed Assets 26 26 27 27 26 25
Other Non-Current Assets 4 4 10 19 170 360
Total Current Assets 22 29 37 70 45 116
Total Assets 52 59 74 116 242 501

Chaman Metallics Cash Flow

#(Fig in Cr.) Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Opening Cash & Cash Equivalents 1 1 0 0 22 0
Cash Flow from Operating Activities -6 8 -6 12 20 -52
Cash Flow from Investing Activities -6 -1 -3 -6 -149 -175
Cash Flow from Financing Activities 13 -8 9 16 106 227
Net Cash Inflow / Outflow 1 -1 -0 22 -22 -0
Closing Cash & Cash Equivalent 1 0 0 22 0 0

Chaman Metallics Ratios

# Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Earnings Per Share (Rs) 2.08 2.94 4.61 7.08 5.19 4.05
CEPS(Rs) 2.84 3.8 5.58 7.84 6.12 5.02
DPS(Rs) 0 0 0 0 0 0
Book NAV/Share(Rs) 13.23 16.18 21.44 31.85 37.14 41.19
Core EBITDA Margin(%) 0.02 7.71 8.25 11.47 9.63 8.82
EBIT Margin(%) -1.69 6.43 7.64 11.27 9.55 8.62
Pre Tax Margin(%) -3.13 4.94 6.62 10.29 8.66 7.68
PAT Margin (%) 6.37 3.72 4.43 7.51 6.63 5.68
Cash Profit Margin (%) 8.7 4.81 5.36 8.31 7.82 7.03
ROA(%) 7.06 9.42 12.36 17.97 6.99 2.63
ROE(%) 15.72 20.03 24.52 29.75 15.04 10.34
ROCE(%) -2.27 21.02 26.68 31.73 11.36 4.39
Receivable days 16.73 9.4 16.31 18.04 12.2 3.26
Inventory Days 101.23 42.11 34.23 26.91 27.39 52.48
Payable days 63.2 32 20.51 16.39 31.67 47.38
PER(x) 0 0 0 5.86 15.43 39.44
Price/Book(x) 0 0 0 1.3 2.16 3.88
Dividend Yield(%) 0 0 0 0 0 0
EV/Net Sales(x) 0.43 0.14 0.18 0.43 1.71 4.32
EV/Core EBITDA(x) 67.76 1.81 2.07 3.55 15.75 43.31
Net Sales Growth(%) 0 142.29 31.52 23.13 -17.02 -8.84
EBIT Growth(%) 0 1021.59 56.41 81.58 -29.7 -17.72
PAT Growth(%) 0 41.58 56.56 108.76 -26.74 -21.94
EPS Growth(%) 0 41.58 56.56 53.64 -26.74 -21.94
Debt/Equity(x) 0.84 0.48 0.66 0.28 1.44 3.6
Current Ratio(x) 1.43 1.21 2.1 3.72 1.49 1.12
Quick Ratio(x) 0.41 0.54 1.06 2.91 1.06 0.76
Interest Cover(x) -1.18 4.33 7.46 11.53 10.76 9.23
Total Debt/Mcap(x) 0 0 0 0.22 0.67 0.93

Chaman Metallics Shareholding Pattern

# Mar 2023 Sep 2023 Mar 2024 Sep 2024 Mar 2025 Sep 2025 Mar 2026
Promoter 73.6 73.6 73.6 73.6 73.6 73.6 73.6
FII 0 0 0 0 0 0 0
DII 0 0 0 0 0 0 0
Public 26.4 26.4 26.4 26.4 26.4 26.4 26.4
Others 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100

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Chaman Metallics Pros & Cons

Pros

Cons

  • Debtor days have increased from 31.67 to 47.38days.
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