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Chennai Ferrous Industries Ltd (CHENFERRO) Fair Value & Analysis

Other · IN · Market cap ₹311M

CF Chennai Ferrous Industries Ltd CHENFERRO · BSE
Price₹79.90
Fair Value₹159.52
Upside+99.7%
Quality57/100
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Mixed Growth
Thin margins · 2.6% net margin
Low debt · generates free cash flow
Ranks above peers (9/13)
Narrow moat 23/100
Evidence: High Range ₹113.04 – ₹199.39 Share as image

Fair value as of: Aug 19, 2026

From 23 valuation models · updated today

A solid business, screening 100% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (₹113.04). The market is more pessimistic than our downside scenario.
  • Solid quality (57/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

₹330.95 ₹3.49 Fair Value ₹159.52 Dec 2020 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 19, 2026.

How to read this chart

60‑month range ₹3.49 – ₹330.95 · fair‑value band ₹113.04 – ₹199.39 · the ₹79.90 price screens below the ₹159.52 fair value. Dashed = 300-day average. As of Aug 19, 2026.

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Analysis

Chennai Ferrous Industries Ltd (CHENFERRO) currently trades at ₹79.90, while our model-based Fair Value estimate is ₹159.52, implying the stock looks roughly 99.7% undervalued today. The Quality Score stands at 57/100 (solid quality), in the Other sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Chennai Ferrous Industries Ltd generated revenue of ₹1.3B at a net margin of 2.6%. It earns a return on equity of 6.3%. Net debt stands at ₹11.7M. The stock trades on a trailing P/E of 8.5. Fundamentals as of Aug 19, 2026

Our scenario range runs from ₹113.04 (bear case) to ₹199.39 (bull case); at ₹79.90, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 46% below its 52-week high and 40% above its 52-week low, currently below its 200-day average. For context, the median of 10 Other peers we cover trades at -24% fair-value upside, at 100%, CHENFERRO screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹127.01 ₹213.31 ₹348.92 80
Rev-Margin DCF ₹93.37 ₹148.48 ₹264.59 74
ROIC Compounder ₹48.00 ₹53.38 ₹57.86 72
All 23 models by family
DCF Models
FCF DCF ₹135.01 ₹193.15 ₹366.92 38
5Y Revenue Exit ₹86.05 ₹130.77 ₹223.41 39
5Y EBITDA Exit ₹81.84 ₹122.28 ₹200.97 41
5Y P/E Exit ₹131.76 ₹275.84 ₹470.77 38
10Y Revenue Exit ₹101.09 ₹183.13 ₹226.94 36
10Y EBITDA Exit ₹100.18 ₹174.88 ₹293.56 37
10Y P/E Exit ₹133.48 ₹272.90 ₹498.56 35
Earnings-Based
Graham-Dodd ₹63.81 ₹444.97 ₹624.46 54
Lynch FV ₹229.89 ₹328.41 ₹426.94 50
PEG = 1.0 ₹229.89 ₹328.41 ₹426.94 46
EPV ₹48.00 ₹53.38 ₹57.86 59
Multiples
P/E Multiple ₹119.64 ₹159.52 ₹199.39 63
P/S Multiple ₹119.64 ₹159.52 ₹199.39 58
P/B Multiple ₹119.64 ₹159.52 ₹199.39 55
EV/EBIT ₹66.08 ₹85.26 ₹104.44 53
EV/EBITDA ₹55.88 ₹71.67 ₹87.45 54
EV/Revenue ₹58.41 ₹79.78 ₹101.16 43
Asset-Based
NCAV (Graham) ₹76.90 ₹103.04 ₹153.80 50
Growth DCF
Growth DCF ₹127.01 ₹213.31 ₹348.92 80
Rev-Margin DCF ₹93.37 ₹148.48 ₹264.59 74
Economic Profit
Residual Income ₹114.26 ₹115.26 ₹108.94 61
ROIC Compounder ₹48.00 ₹53.38 ₹57.86 72
Growth Earnings
Growth-Adj P/E ₹282.83 ₹404.04 ₹525.26 68

Widest divergence: Growth Earnings (₹404.04) versus Economic Profit (₹53.38). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹1.3B
Revenue growth (YoY) -90.2%
Net margin 2.6%
Return on equity 6.3%
Free cash flow ₹33.5M FY2026
P/E ratio 8.5
More key figures
Operating margin 1.1%
EPS (TTM) ₹9.38
EPS growth (YoY) +954%
Net debt ₹11.7M FY2025

Figures from reported company fundamentals · as of Aug 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 59 · Market factors (momentum, volatility) 29

Profitability 43
Margins and returns on capital today
Quality Growth 21
Are margins and returns improving?
Cashflow 45
Earnings quality: real cash, not paper profit
Fin. Strength 83
Balance sheet, leverage, solvency risk
Investment 88
Disciplined investing over empire-building
Low Volatility 65
Calm price path (market factor)
Momentum 14
Price trend over the last 3–12 months (market factor)
52W Momentum 13
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Chennai Ferrous Industries Limited manufactures sponge iron and allied products in India. The company was incorporated in 2010 and is based in Gummidipoondi, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Chennai Ferrous Industries Ltd reported revenue of ₹1.3B in FY2026 versus ₹928M in FY2022, a compound +9.3%/yr. Reported net income was ₹33.8M in FY2026, compounding −39.5%/yr from FY2022.

Growth Quality 71/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹1.3B
Latest YoY
−40.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.6%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+23.3%
Avg. growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.3%
Revenue +9.3%/yr
FY22 ₹928M
FY23 ₹1.4B
FY24 ₹1.4B
FY25 ₹2.2B
FY26 ₹1.3B
Net income −39.5%/yr
FY22 ₹253M
FY23 ₹32.9M
FY24 ₹27.9M
FY25 ₹40.1M
FY26 ₹33.8M

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Cite: Fair Value Calculator (2026). "Chennai Ferrous Industries Ltd Fair Value". https://www.fairvalue-calculator.com/stock/CHENFERRO

Peer Group

Other · 381 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 57 · Above median
Fair Value upside +100% · Top 25%
Return on equity (TTM) 6% · Top 25%
Return on assets 2% · Top 25%
Net margin (TTM) 3% · Top 25%
Operating margin (TTM) 1% · Above median
Revenue growth -90% · Bottom 25%

Valuation Multiples vs Other median · lower = cheaper

P/E (TTM) 8.5× · Cheaper than median
P/B 0.56× · Pricier than median
P/S (TTM) 0.24× · Cheaper than 75% of peers
P/FCF 0.1× · Pricier than median
EV/EBITDA 12.3× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 10
FUTURE0 · sector 0
PAST25 · sector 0
HEALTH100 · sector 98
DIVIDEND0 · sector 26

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

Is Chennai Ferrous Industries Ltd (CHENFERRO) overvalued or undervalued?
As of Aug 19, 2026, our model estimates a fair value of ₹159.52 versus a price of ₹79.90, about +100% (undervalued).
What is the fair value of CHENFERRO?
Our model-based fair value for Chennai Ferrous Industries Ltd is ₹159.52 (as of Aug 19, 2026), built from audited fundamentals. The current price: ₹79.90.
What is the quality score of CHENFERRO?
Chennai Ferrous Industries Ltd has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Chennai Ferrous Industries Ltd (CHENFERRO)?
Chennai Ferrous Industries Ltd reported trailing-twelve-month revenue of about ₹1.3B (latest available figure, as of Aug 19, 2026).
What is the net profit margin of CHENFERRO?
The net profit margin of Chennai Ferrous Industries Ltd is about 2.6%, meaning it keeps roughly 2.6% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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