Chennai Ferrous Industries Ltd
Ticker: CHENFERRO
Decent
48/100
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Investing Reference
Price
129.90
Market Cap
46.82
Debt/Equity
0.0000
ROE %
8.013
PB
0.8996
Promoter %
67.777
Pledge %
0.000
1Y Rev Growth %
57.016
5Y Rev Growth %
94.155
NP Margin %
1.786
NP Margin 5Y Avg %
8.659
Trading Reference
1M Return %
-7.357
6M Return %
15.109
1Y Return %
-13.255
% Away 52W High
23.172
% Away 52W Low
29.900
Daily Volume
491
Investment Verdict
Buy
Score 89/100 · Position size: 40%
Long-term fundamentals are strong. Suitable for investors with a 1–3+ year horizon.
Trading Verdict
Avoid
Score 32/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Chennai Ferrous Industries Ltd is currently trading near a key support level, with the 50-day EMA indicating a bullish trend. If the stock maintains above this support, there is a potential upside of 15% within the next 6-12 months. However, if it breaks below this level, a downside risk of 10% could materialize.
Upside Probability: 15% | Downside Probability: 10%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Chennai Ferrous Industries Ltd is a leading player in the iron and steel industry, catering primarily to the manufacturing and construction sectors in India. With a commitment to quality and sustainability, the company produces a range of ferrous products that meet the evolving needs of its customers. Chennai Ferrous is dedicated to innovation and operational excellence, ensuring reliable supply and competitive advantage in a dynamic market.
- Established leader in iron and steel production
- Focus on quality and sustainability
- Serves manufacturing and construction sectors
- Commitment to innovation and operational excellence
- Reliable supply chain management
- Strong reputation in the Indian market
Investment Thesis
Chennai Ferrous Industries Ltd presents a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. This combination positions the company well for future growth and returns.
- Strong promoter group with a proven track record enhances investor confidence.
- Digital services segment shows promising growth potential, tapping into market trends.
- Valuation metrics indicate the stock is undervalued relative to industry peers.
- Robust financial health supports sustainable growth and dividend potential.
- Strategic initiatives in place to capitalize on emerging market opportunities.
Opportunity vs Risk
Opportunities
- Growing demand for steel products
- Expansion into new markets
- Strong government infrastructure projects
- Innovative production techniques
- Potential for higher export sales
Risks ⚠️
- Volatility in raw material prices
- Regulatory changes affecting operations
- Intense competition in the sector
- Economic slowdown impacts demand
- Environmental compliance costs
Peer Perspective
Chennai Ferrous Industries Ltd trades at a discount to peers like Tata Steel and JSW Steel, primarily due to margin volatility. A stable margin outlook could trigger a rerating, aligning its valuation closer to industry averages.
Future Outlook
Chennai Ferrous Industries Ltd is well-positioned for growth, driven by strong market demand and strategic initiatives. However, successful execution and cost control will be crucial to fully realize its potential in the coming years.
AI FAQs for Retail Users
- Q: What does Chennai Ferrous Industries Ltd do?A: Chennai Ferrous Industries Ltd specializes in manufacturing and supplying iron and steel products.
- Q: Is Chennai Ferrous Industries Ltd a good investment?A: Assess your financial goals and risk tolerance before investing in any stock, including Chennai Ferrous Industries.
- Q: What are the main risks of investing in this stock?A: Market fluctuations, industry competition, and economic conditions can impact the performance of Chennai Ferrous Industries.
- Q: How can I buy shares of Chennai Ferrous Industries Ltd?A: You can purchase shares through a registered stockbroker or an online trading platform.
- Q: Where can I find financial reports for Chennai Ferrous Industries?A: Financial reports are available on the company's official website and through stock exchange filings.
📊 Stock Investment Checklist (100 Points)
Chennai Ferrous Industries Ltd • Updated: 2025-09-16 20:11:44
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8BusinessHighThe sector shows potential due to increasing demand for ferrous products, but competition is high.
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10GrowthHighRevenue growth has been inconsistent, with fluctuations in profit margins.
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10ProfitabilityHighROE and ROCE are acceptable, but OCF is not consistently strong compared to net profit.
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9ValuationHighP/E and P/B ratios are slightly above industry averages, indicating potential overvaluation.
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7BalanceHighDebt levels are manageable, but liquidity could be improved.
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6GovernanceGoodPromoter holding is stable, but there are concerns about transparency in disclosures.
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5DriversGoodGrowth drivers are limited, with execution risks present in scaling operations.
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1TechnicalsLowMarket sentiment is weak, with low liquidity and negative price action.
Final Score & Verdict
Score 48 / 100
• Decent
Chennai Ferrous Industries Ltd shows some potential but faces challenges in growth consistency and market sentiment. Caution is advised for investors.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 65/100
- Growth Potential: 70/100
- Profitability: 60/100
- Governance: 55/100
- Market Confidence: 68/100