IMFA posted a weak Q4 nos, largely due to increase in other expenses- gross margins remains healthy. Few interesting points:
- Co. declared total dividend of Rs.30/share in FY24- highest ever.
- Net cash on book currently at 300 Cr- strongest Balance Sheet in company’s history.
- Valuations are still around 5x EV/EBITDA- same as 10 years of median multiple despite the balance sheet turnaround.
- Fox Consultancy- public shareholder sold almost entire holding of 5% in last 1 year- pressure on the stock price is expected to ease out.
- Co. is generating 500 Cr CFO in a year where all other global players are suffering big time- South Africa due to Power issues and China due to rising chrome ore prices. IMFA made consistent 20% margins because of its backward integration.
- Upcoming capex of 1500 Cr will help to increase volumes meaningfully- entirely funded from internal accruals.
- Management expects additional INR ~250 Cr as final settlement on account of Utkal C ongoing litigation from JSPL.
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