KIOCL Share Price Falls Over 8% After 50% Surge in Prior Sessions
Shares of KIOCL fell over 8% on Tuesday after surging nearly 50% in the last three trading sessions. The stock had risen 20% on Monday and last Friday as well.
About KIOCL
KIOCL was established as a 100% export-oriented unit and is primarily engaged in the business of iron ore mining, beneficiation, and production of high-quality pellets. The company is a Schedule “A” Miniratna Government of India Enterprise.
The company has its head office in Bengaluru and has pelletisation and pig iron plant units in Mangalore. The President of India holds 99.03% stake in KIOCL, while the remaining 0.97% is held by the public shareholders.
Diversification and Exploration
The company has diversified into operation and maintenance services, mineral exploration, and providing pellet manufacturing services pertaining to its various core areas of expertise.
KIOCL has executed 36 exploration assignments which include critical minerals such as copper, gold, graphite, and rare earths, as per a Business Standard report.
Steel Demand Outlook
India’s steel demand is projected to grow by 8-9% in 2025, significantly outpacing the growth rates of other countries. “This optimistic outlook reflects a strong trajectory for the Indian steel industry, driven by multiple demand-side factors,” KIOCL said in its FY25 annual report.
“With markets in most regions of the world closed, India is becoming the most attractive market for steel products. Its import is growing amid an increase in local production and the commissioning of new steelmaking capacities. At the same time, prices for finished rolled products have positive dynamics,” the company added.
Share Price Movement
Shares of KIOCL fell as much as 8.60% to Rs 573.60 apiece. They pared losses to trade 8.57% lower at Rs 573 apiece, as of 9:50 a.m. This compares to a 0.34% advance in the NSE Nifty 50.
The stock has risen 67.12% in the last 12 months and 45.14% year-to-date. Total traded volume so far in the day stood at 2.89 times its 30-day average. The relative strength index was at 81.84.
Investment Opportunities
For investors looking to capitalize on the growing steel demand in India, steel industry stocks like KIOCL, Tata Steel, and Jindal Steel may be worth considering.
However, it’s essential to conduct thorough research and analysis before making any investment decisions. Investors should also keep an eye on the Indian stock market trends and economic news to stay informed about the market.
