Big bet on ferrochrome expansion sees IMFA stock with 28% upside potential
Target price of Rs 1,652 reflects expectations of nearly doubled capacity, stronger domestic demand and sustained cost advantages.
- Sep 8, 2026,
- Updated Sep 8, 2026 2:46 PM IST
Indian Metals and Ferro Alloys (IMFA) is entering a capacity-led growth phase, with brokerage 360 One Capital initiating coverage on the stock with a target price of Rs 1,652. The target implies nearly 28% upside from IMFA’s closing price of Rs 1,285.70 on September 7, 2026.
The brokerage expects IMFA’s ferrochrome capacity to almost double from 284 kilotonnes (KT) in FY25 to 534 KT by FY28, supported by expansion-led growth and stronger domestic demand.
360 One Capital expects the expansion to drive compound annual growth rates (CAGRs) of 23% in revenue, 25% in earnings before interest, tax, depreciation and amortisation (EBITDA), and 20% in profit after tax (PAT) between financial year 2025-26 (FY26) and financial year 2028-29 (FY29). It also sees return on equity (ROE) and return on capital employed (ROCE) improving to around 18% and 20%, respectively, by FY29.
IMFA is led by Baijayant Panda and Subhrakant Panda, sons of founder Bansidhar Panda and the second generation of the promoter family. Baijayant Panda is executive vice chairman, while Subhrakant Panda is managing director and has led the company since 2006.
Baijayant Panda is also a Member of Parliament from Kendrapara, Odisha, having been elected in 2024. He was earlier a Rajya Sabha member from Odisha between 2000 and 2009. The leadership is known for a conservative management style, with net debt-to-equity not exceeding 0.6 times over the past seven years.
The brokerage said IMFA’s captive chrome ore mines at Mahagiri and Sukinda give it a structural cost advantage over Chinese producers that lack resource security. This translates into production costs that are 8–10% lower and helps protect margins even in downcycles, including an EBITDA margin of around 10% in a weak FY24. With 2.4 million tonnes (MT) of ore required for 1 MT of ferrochrome, backward integration remains a key moat, especially given the concentration of global chrome ore supply in South Africa.
IMFA has also forayed into a maize-based ethanol project, which could generate revenue of Rs 200–300 crore and EBITDA of around Rs 30 crore. Its entry into critical minerals exploration adds another layer of optionality.
Exports currently account for 83% of IMFA’s volumes, supported by established relationships with customers such as POSCO and major Chinese steelmakers. The company, however, is looking to raise its domestic mix to 40% to align with India’s structural stainless-steel demand growth of 6–8% annually. “Its ability to flex between export and domestic markets based on spreads supports better realisations,” 360 One Capital said in the report.
Incorporated in 1961 and headquartered in Bhubaneswar, Odisha, IMFA is one of India’s leading fully integrated producers of value-added ferrochrome. It operates manufacturing complexes at Therubali, Choudwar and Kalinganagar, along with captive chrome ore mines at Sukinda and Mahagiri. Its integration across mining, smelting and power makes it a cost-competitive supplier to global stainless-steel producers by reducing raw-material and energy risks compared with standalone smelters.
Indian Metals and Ferro Alloys (IMFA) is entering a capacity-led growth phase, with brokerage 360 One Capital initiating coverage on the stock with a target price of Rs 1,652. The target implies nearly 28% upside from IMFA’s closing price of Rs 1,285.70 on September 7, 2026.
The brokerage expects IMFA’s ferrochrome capacity to almost double from 284 kilotonnes (KT) in FY25 to 534 KT by FY28, supported by expansion-led growth and stronger domestic demand.
360 One Capital expects the expansion to drive compound annual growth rates (CAGRs) of 23% in revenue, 25% in earnings before interest, tax, depreciation and amortisation (EBITDA), and 20% in profit after tax (PAT) between financial year 2025-26 (FY26) and financial year 2028-29 (FY29). It also sees return on equity (ROE) and return on capital employed (ROCE) improving to around 18% and 20%, respectively, by FY29.
IMFA is led by Baijayant Panda and Subhrakant Panda, sons of founder Bansidhar Panda and the second generation of the promoter family. Baijayant Panda is executive vice chairman, while Subhrakant Panda is managing director and has led the company since 2006.
Baijayant Panda is also a Member of Parliament from Kendrapara, Odisha, having been elected in 2024. He was earlier a Rajya Sabha member from Odisha between 2000 and 2009. The leadership is known for a conservative management style, with net debt-to-equity not exceeding 0.6 times over the past seven years.
The brokerage said IMFA’s captive chrome ore mines at Mahagiri and Sukinda give it a structural cost advantage over Chinese producers that lack resource security. This translates into production costs that are 8–10% lower and helps protect margins even in downcycles, including an EBITDA margin of around 10% in a weak FY24. With 2.4 million tonnes (MT) of ore required for 1 MT of ferrochrome, backward integration remains a key moat, especially given the concentration of global chrome ore supply in South Africa.
IMFA has also forayed into a maize-based ethanol project, which could generate revenue of Rs 200–300 crore and EBITDA of around Rs 30 crore. Its entry into critical minerals exploration adds another layer of optionality.
Exports currently account for 83% of IMFA’s volumes, supported by established relationships with customers such as POSCO and major Chinese steelmakers. The company, however, is looking to raise its domestic mix to 40% to align with India’s structural stainless-steel demand growth of 6–8% annually. “Its ability to flex between export and domestic markets based on spreads supports better realisations,” 360 One Capital said in the report.
Incorporated in 1961 and headquartered in Bhubaneswar, Odisha, IMFA is one of India’s leading fully integrated producers of value-added ferrochrome. It operates manufacturing complexes at Therubali, Choudwar and Kalinganagar, along with captive chrome ore mines at Sukinda and Mahagiri. Its integration across mining, smelting and power makes it a cost-competitive supplier to global stainless-steel producers by reducing raw-material and energy risks compared with standalone smelters.