KIOCL Share Price Slumps Over 8% After Logging 50% Surge In Prior Three 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.

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. 

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 includes critical minerals such as copper, gold, graphite, and rare earths, as per a Business Standard report.

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.

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.