WEBSITE BSE:0 NSE: Inc. Year: 2014 Industry: Ferro & Silica Manganese My Bucket: Add Stock
Last updated: 15:40
No Notes Added Yet
1. Business Overview
Jainam Ferro Alloys (I) Ltd. is engaged in the manufacturing of ferroalloys, specifically Ferro Manganese and Silica Manganese. These products are crucial raw materials used in the steelmaking process, primarily to improve the strength, hardness, and other mechanical properties of steel, as well as for de-oxidization. The company's core business model involves procuring raw materials like manganese ore, coal/coke, and power, processing them through energy-intensive furnaces to produce ferroalloys, and then selling these finished products to steel manufacturers and other industrial clients. It makes money by selling its manufactured ferroalloys at a margin over its production costs.
2. Key Segments / Revenue Mix
Given its specified sector and industry, Jainam Ferro Alloys' revenue primarily stems from the production and sale of two main product categories: Ferro Manganese and Silica Manganese. Without specific financial disclosures, a detailed revenue mix breakdown is not available, but these two product types constitute its core revenue streams.
3. Industry & Positioning
The company operates in the ferroalloys industry, a sub-sector of the broader metals and mining industry. This is a commodity-driven industry, highly linked to the cyclical fortunes of the global and domestic steel industry. Demand for ferroalloys is directly correlated with steel production and infrastructure development. The industry in India features a mix of large integrated steel players with captive ferroalloy units, and standalone ferroalloy producers. Jainam Ferro Alloys is an Indian manufacturer operating within this landscape, positioning itself as a supplier to the domestic steel sector. Its competitive standing relative to peers would depend on its production capacity, cost efficiency, raw material sourcing advantages, and customer relationships.
4. Competitive Advantage (Moat)
Operating in a commodity business like ferroalloys makes establishing durable competitive advantages challenging. Moats are typically thin or absent. Potential advantages for the company, if present, could include:
Cost Leadership: Achieved through efficient operations, favorable long-term raw material sourcing contracts (manganese ore, coal/coke), or captive power generation.
Strategic Location: Proximity to major steel manufacturing hubs in India or to raw material sources, reducing logistics costs.
Operational Efficiency: Superior process technology or management of energy-intensive operations that leads to lower per-unit production costs compared to peers.
However, without specific details, it is generally difficult for a standalone ferroalloy producer to build strong, sustainable moats beyond cost efficiency in a highly competitive and price-sensitive market.
5. Growth Drivers
Growth in Indian Steel Production: As ferroalloys are essential for steelmaking, increased demand for steel, driven by India's infrastructure push, urbanization, and manufacturing growth, will directly fuel demand for the company's products.
Government Initiatives: "Make in India" campaigns and significant government spending on infrastructure projects (roads, railways, housing) are expected to boost domestic steel consumption, indirectly benefiting ferroalloy producers.
Favorable Raw Material Prices: Stable or declining prices of key inputs like manganese ore, coal/coke, and power can improve profit margins and encourage higher production.
Capacity Expansion: Any future investments by the company to expand its production capacity will be a direct growth driver.
6. Risks
Commodity Price Volatility: Fluctuations in the prices of both raw materials (manganese ore, coking coal, power) and finished ferroalloys can significantly impact profit margins.
Cyclicality of Steel Industry: The company's performance is highly dependent on the cyclical nature of the global and domestic steel industry, making it vulnerable to economic downturns.
Energy Cost Risk: Ferroalloy production is highly energy-intensive, making the company susceptible to volatility in power tariffs and fuel prices.
Environmental Regulations: Increasing environmental scrutiny and stricter regulations on energy-intensive industries could lead to higher compliance costs or operational restrictions.
Competition: Intense competition from domestic and international players can put pressure on pricing and market share.
7. Management & Ownership
As an Indian company, it is typically promoted and significantly owned by a promoter group, which holds a controlling stake. The quality of management is crucial for navigating the cyclical and capital-intensive ferroalloys industry, requiring expertise in raw material procurement, operational efficiency, and market timing. Without specific information on management's track record or detailed ownership structure, a granular assessment is not possible. However, promoter-led companies often have a long-term strategic focus.
8. Outlook
The outlook for Jainam Ferro Alloys (I) Ltd. is largely intertwined with the trajectory of the Indian steel industry and global commodity markets. On the bull side, strong domestic steel demand fueled by India's economic growth and infrastructure development provides a favorable backdrop for increased ferroalloy consumption. Operational efficiencies and strategic raw material procurement could enable the company to capture healthy margins. On the bear side, the inherent volatility of raw material prices (especially manganese ore and power) and finished product prices poses a significant risk to profitability. Downturns in the steel cycle or intense competition could squeeze margins. Overall, the company's performance will hinge on its ability to manage input costs effectively, maintain operational efficiency, and capitalize on the long-term growth story of the Indian economy while navigating the cyclical nature of its industry.
Our experts help you choose the right stocks based on performance, risk, and growth potential.
Market Cap ₹328 Cr.
Stock P/E 32.9
P/B 2.7
Current Price ₹280.3
Book Value ₹ 103.4
Face Value 10
52W High ₹322.9
Dividend Yield 0%
52W Low ₹ 169
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(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 |
| #(Fig in Cr.) | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|
| Net Sales | 190 | 222 | |
| Other Income | 5 | 5 | |
| Total Income | 195 | 227 | |
| Total Expenditure | 185 | 208 | |
| Operating Profit | 11 | 19 | |
| Interest | 2 | 2 | |
| Depreciation | 2 | 4 | |
| Exceptional Income / Expenses | 0 | 0 | |
| Profit Before Tax | 8 | 14 | |
| Provision for Tax | 2 | 4 | |
| Profit After Tax | 5 | 10 | |
| Adjustments | 0 | 0 | |
| Profit After Adjustments | 5 | 10 | |
| Adjusted Earnings Per Share | 5.1 | 9.5 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 17% | 0% | 0% | 0% |
| Operating Profit CAGR | 73% | 0% | 0% | 0% |
| PAT CAGR | 100% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 22% | 27% | NA% | NA% |
| ROE Average | 9% | 7% | 7% | 7% |
| ROCE Average | 13% | 10% | 10% | 10% |
| #(Fig in Cr.) | Mar 2024 | Mar 2025 |
|---|---|---|
| Shareholder's Funds | 105 | 133 |
| Minority's Interest | 0 | 0 |
| Borrowings | 3 | 1 |
| Other Non-Current Liabilities | 2 | 3 |
| Total Current Liabilities | 35 | 47 |
| Total Liabilities | 144 | 183 |
| Fixed Assets | 6 | 18 |
| Other Non-Current Assets | 51 | 55 |
| Total Current Assets | 88 | 110 |
| Total Assets | 144 | 183 |
| #(Fig in Cr.) | Mar 2024 | Mar 2025 |
|---|---|---|
| Opening Cash & Cash Equivalents | 1 | 1 |
| Cash Flow from Operating Activities | 3 | -2 |
| Cash Flow from Investing Activities | -12 | -2 |
| Cash Flow from Financing Activities | 8 | 3 |
| Net Cash Inflow / Outflow | -0 | -1 |
| Closing Cash & Cash Equivalent | 1 | 0 |
| # | Mar 2024 | Mar 2025 |
|---|---|---|
| Earnings Per Share (Rs) | 5.07 | 9.47 |
| CEPS(Rs) | 6.49 | 12.79 |
| DPS(Rs) | 0 | 0 |
| Book NAV/Share(Rs) | 99.19 | 113.54 |
| Core EBITDA Margin(%) | 2.34 | 5.28 |
| EBIT Margin(%) | 4.01 | 5.76 |
| Pre Tax Margin(%) | 3.34 | 5.1 |
| PAT Margin (%) | 2.35 | 3.67 |
| Cash Profit Margin (%) | 3.02 | 4.97 |
| ROA(%) | 3.7 | 6.09 |
| ROE(%) | 5.09 | 8.89 |
| ROCE(%) | 7.95 | 12.55 |
| Receivable days | 33.04 | 25.13 |
| Inventory Days | 30.88 | 33.78 |
| Payable days | 62.14 | 80.97 |
| PER(x) | 24.81 | 25.97 |
| Price/Book(x) | 1.27 | 2.17 |
| Dividend Yield(%) | 0 | 0 |
| EV/Net Sales(x) | 0.59 | 0.98 |
| EV/Core EBITDA(x) | 10.55 | 11.3 |
| Net Sales Growth(%) | 0 | 16.87 |
| EBIT Growth(%) | 0 | 71.9 |
| PAT Growth(%) | 0 | 87.15 |
| EPS Growth(%) | 0 | 86.84 |
| Debt/Equity(x) | 0.09 | 0.02 |
| Current Ratio(x) | 2.53 | 2.37 |
| Quick Ratio(x) | 1.98 | 1.7 |
| Interest Cover(x) | 5.93 | 8.67 |
| Total Debt/Mcap(x) | 0.07 | 0.01 |
| # | Mar 2022 | Sep 2022 | Mar 2023 | Sep 2023 | Mar 2024 | Sep 2024 | Mar 2025 | Sep 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|
| Promoter | 73.47 | 73.47 | 73.47 | 73.47 | 73.47 | 73.47 | 73.47 | 66.25 | 66.25 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 26.53 | 26.53 | 26.53 | 26.53 | 26.53 | 26.53 | 26.53 | 33.75 | 33.75 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Mar 2022 | Sep 2022 | Mar 2023 | Sep 2023 | Mar 2024 | Sep 2024 | Mar 2025 | Sep 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.4 | 0.4 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.06 | 1.06 | 1.06 | 1.06 | 1.06 | 1.06 | 1.06 | 1.17 | 1.17 |
* The pros and cons are machine generated.
You May Also Know About
Looking to buy unlisted shares or need guidance on the investment process? Our expert Private Equity Advisors are here to assist you with accurate information, real-time pricing, and seamless execution.
Want to sell unlisted shares, liquidate your ESOPs, or understand the step-by-step process of liquidation? Connect with our Buying Team for smooth coordination, quick evaluations, and end-to-end support.
Planning to build or grow your portfolio? For Mutual Fund investments, PMS solutions, tailored portfolio creation, and overall wealth management, our dedicated Wealth Team is ready to guide you.