Chaman Metallics Limited is an India-based company primarily engaged in the manufacturing and selling of direct reduced iron (DRI), commonly known as sponge iron. As a part of the GS Group, a manufacturer of ISI Grade MS Ingots and TMT Bars, Chaman Metallics plays a crucial role in the steel value chain. The company's sponge iron business caters to the metallic requirements of steel producers in selected geographies, serving as a critical supplier in India's steel production ecosystem by providing essential raw material for steel manufacturers.
The company operates across various segments of the steel industry, including Sponge Iron, Ferro alloys, MS Ingots, and re-rolled products. This diversified product portfolio positions Chaman Metallics as a comprehensive solutions provider within the metallurgical industry.
The company was under the control of the MSP Group from 2006 to 2019. In 2019, Chaman Metallics was acquired by the Raipur-based GR Group, which has been involved in the steel business since 1996. This acquisition brought significant operational synergies, enhancing the company's capabilities and market reach. The business operations are now organized synergistically, deriving benefits from the GR Group's extensive experience across various steel segments, including Ferro alloys, Sponge Iron, MS Ingots, and re-rolled products. The strategic alignment with GR Group has improved operational capabilities and market presence, providing access to a broader customer base and better economies of scale across the steel value chain.
Chaman Metallics commenced its commercial production at its Chandrapur factory unit in 2005. The manufacturing setup is strategically located in Maharashtra, with its registered office situated at A-26 MIDC Taladi Growth Centre, Chandrapur. To ensure the suitability of raw materials for its rotary kiln operations, the company maintains an in-house testing laboratory. This facility is responsible for conducting tests on raw materials such as coal, iron ore, and dolomite, assessing their chemical and physical properties to ensure product conformity with pre-determined industry standards.
The company's operations are supported by modern infrastructure that enables efficient production processes. Robust in-house quality control measures are in place, crucial for maintaining competitiveness in the steel supply chain and ensuring that products meet both industry standards and customer requirements.
Chaman Metallics Ltd. has a market capitalization of ₹414 crore as of March 2025. The company has demonstrated notable growth momentum, with its share price increasing by 31.15% over the past six months and an impressive 88.24% in the last year.
- Market Capitalization: ₹414 crore (as of March 2025)
- PE Ratio: 30.48 (as of April 2025)
- PB Ratio: 0.23 (as of April 2025)
- 52-Week High: ₹173.00
- 52-Week Low: ₹64.00
Promoter holding in Chaman Metallics Ltd. stood at 73.60% as of September 2024, remaining stable from March 2023. This stable promoter holding indicates strong management commitment and confidence in the company's future growth prospects.
Recent corporate actions include the approval of FY25 audited results on May 30, 2025, an increase in authorized capital to ₹750 Crore, and the announcement of a ₹100 Crore rights issue. These capital expansion initiatives signal the company's plans for significant business expansion and capacity enhancement.
The management team includes Chetan Agrawal as Chairman and Rahul Relwani as Company Secretary & Compliance Officer. The company's auditor is O P Singhania & Co.
Chaman Metallics Ltd. is classified as a Small Cap company by Value Research. It trades on both the NSE and BSE under the stock symbol CMNL and operates within the SME segment. This classification highlights its position as an emerging player in the steel sector with considerable growth potential.
The company successfully raised capital through a Public Issue in January 2023 via a fresh issue. This public listing provided Chaman Metallics with enhanced access to capital markets, enabling it to fund its expansion plans and working capital requirements.
Chaman Metallics represents an attractive investment opportunity within India's growing steel sector, benefiting from the nation's infrastructure development and industrialization trends. The company's strategic positioning in the sponge iron segment, combined with its operational synergies within the GR Group ecosystem, places it well to capitalize on growth opportunities in the domestic steel market.
