Dolly Khanna, a renowned investor, carefully added the small-cap firm Indian Metals & Ferro Alloys (IMFA) to her portfolio in the quarter ending December 31, 2024. She bought 1.16% of the company’s stock, or 623,464 shares.
Over the last year, shares of Indian Metals & Ferro Alloys have risen by about 80%, outperforming the Nifty index, which has returned approximately 12%. As of Friday, the stock finished at Rs 901.30 on the BSE, down Rs 9.20 or 1.01% from the previous day’s closing price.
Currently, the stock is trading above its 50-day and 200-day simple moving averages (SMAs), which are Rs 821 and Rs 729 respectively. Despite this, the stock has been highly volatile, with a 1-year beta of 1.5, according to Trendlyne data. The company has a market valuation of Rs 4,862.88 crore.
On December 9, 2024, Indian Metals & Ferro Alloys achieved a 52-week high of Rs 998.40, while it fell to a 52-week low of Rs 472 on December 18.
IMFA was founded in 1961 in the resource-rich state of Odisha. It is a significant manufacturer of value-added ferrochrome, with 190 MVA installed furnace capacity and 204.55 MW captive power production capacity, including 4.55 MW from solar sources. The corporation also has large chrome ore mining properties.
Dolly Khanna, a famous investor headquartered in Chennai, has been active in the stock market since 1996. Her husband, Rajiv Khanna, manages her portfolio, which includes investments in industrial, textile, chemicals, and sugar stocks. As per the most recent company shareholding data.
Dolly Khanna: Who is she?
Dolly Khanna is a Chennai-based investor known for her excellent stock selection skills. Along with her husband, Rajiv Khanna, she has established herself as a strong figure in the Indian equity markets. Khanna is well-known for her investments in lesser-known smallcap and midcap firms, as well as her ability to uncover undervalued businesses with great growth potential. Her portfolio frequently includes a varied mix of sectors such as chemicals, manufacturing, and consumer products, making her one of the most carefully watched investors by retail and institutional investors alike.
Her investments in Rain Industries, Cera Sanitaryware, and Butterfly Gandhimathi Appliances have resulted in huge gains over the years, giving her the title of “value investor with a midcap tilt.” Her investing picks frequently cause ripples in the markets, garnering attention to the firms she bets on.
About Indian Metals & Ferro Alloys (IMFA)
Indian Metals & Ferro Alloys (IMFA) is one of India’s main producers of ferroalloys, which are essential in the production of steel. IMFA, founded in 1961 and located in Bhubaneswar, Odisha, maintains cutting-edge manufacturing facilities and has a vertically integrated company model. This incorporates captive mining, power generation, and ferroalloy manufacture, making it an economical player in the market.
Key Highlights of IMFA:
- Product Portfolio: IMFA specializes in the production of ferrochrome, a key element in stainless steel production. With a strong export presence, the company serves global markets in Europe, Asia, and the Americas.
- Captive Power: The corporation owns and operates its own thermal and renewable energy plants, assuring an uninterrupted power supply for its energy-intensive processes.
- Sustainability Focus: IMFA has prioritized environmental sustainability through projects such as water recycling, reforestation, and the transfer to cleaner energy sources.
- Financial Performance: Despite its small size, IMFA has shown resilience in navigating industry cycles. In recent quarters, the company has demonstrated consistent revenue growth, owing to strong demand for ferrochrome and attractive commodity prices.
Market Reaction and Outlook
Following the announcement of Dolly Khanna’s stake acquisition, IMFA shares experienced a rise in trading volume, indicating increased investor interest. Historically, stocks in which Khanna invests have received more market attention, with her endorsement viewed as a stamp of quality.
The attention from such a high-profile investor comes at a time when IMFA is well-positioned to benefit from positive industry developments. With its strong operational capabilities and strategic emphasis on sustainability, IMFA may attract more institutional and retail investors shortly.
Conclusion
Dolly Khanna’s investment in Indian Metals & Ferro Alloys demonstrates her continuous commitment to exploring niche opportunities in the Indian market. For investors, this serves as a reminder of the potential of small-cap businesses when supported by excellent fundamentals and growth opportunities. While IMFA’s future success is dependent on industry fundamentals and execution, the endorsement from one of India’s most respected investors provides an unquestionable boost to its market narrative.
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