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Chaman Metallics
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Chaman Metallics Limited was originally incorporated as 'Chaman Metallics Private Limited' on November 10, 2003. Subsequently, the Company converted into a Public Company at the Extra Ordinary General Meeting held on February 22, 2008 and renamed as 'Chaman Metallics Limited' vide a fresh certificate of incorporation dated April 22, 2008, issued by the Registrar of Companies, Maharashtra, Mumbai.
The Company is primarily engaged in manufacturing and selling of Direct Reduced Iron (i.e. sponge iron). Sponge iron is mainly used as a raw material for making steel in electric arc furnaces and induction furnaces. Through sponge iron business, the Company cater to the metallic requirements of steel producers in selected geographies. Their manufacturing unit is based at Chandrapur, Maharashtra and is spread across an area of around 63 acres of land.
At their sponge iron manufacturing facility, the Company operate two Rotary kilns having an aggregate annual installed capacity of 72,000 MT for production of sponge iron. The strategic location of sponge iron manufacturing facility aids its access to high-quality iron ore, iron ore pellets, coal and dolomite which are the major raw materials for sponge iron manufacturing. During the production of sponge iron, a solid waste is produced as a by-product called dolochar, which is used in manufacturing steel billets, ingots and re-rolled products.
The manufacturing facility is equipped with requisite technology and infrastructure including machineries, testing laboratory other handling equipments to facilitate smooth manufacturing process. The key raw materials to produce sponge iron are iron ore/iron ore pellets, coal and dolomite. Sponge iron manufacturing is highly sensitive to raw material characteristics that would help obtain the rated capacity and the desired product quality. To ascertain the suitability of raw materials in a rotary kiln, the Company hase in-house testing laboratory that is responsible for conducting tests on raw materials i.e .coal, iron ore and dolomite to check their chemical and physical properties, to ensure the conformity of product conform with pre-determined standards.
The Company commenced their commercial production at Chandrapur factory unit in year, 2005. Thereafter, in 2008 it purchased land in Chandrapur District, within the limits of Grampanchayat, Yerur. The Company was under the control of MSP Group from 2006 to 2019. In 2019, the Company was acquired by Raipur-based GR Group which is in steel business since 1996. The business operations are organized synergistically, through which it derive benefits after their acquisition by GR Group, which operates in various segment of steel i.e. Ferro alloys, Sponge Iron, MS Ingots and re-rolled products.
The Company came out with a Public Issue in January, 2023 by raising capital of Rs. 24.21 crores through Fresh Issue.
Chaman Metallics share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Chaman Metallics indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Chaman Metallics is valued compared to its competitors.
Chaman Metallics PE ratio helps investors understand what is the market value of each stock compared to Chaman Metallics 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Chaman Metallics evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Chaman Metallics generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Chaman Metallics in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Chaman Metallics shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Chaman Metallics compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Chaman Metallics over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Chaman Metallics helps investors get an insight into when they can enter or exit the stock. Key components of Chaman Metallics Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Chaman Metallics shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Chaman Metallics ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Chaman Metallics provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Chaman Metallics highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Chaman Metallics .
The balance sheet presents a snapshot of Chaman Metallics ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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