Dark horse stock of the day: KIOCL Ltd jumps 20% and hits the upper circuit

Shares of KIOCL Limited witnessed a significant surge today. The stock opened trading at Rs 274.95, which was 4.9% up from the previous day’s closing price of Rs 262. What’s more, the stock hit an upper circuit limit of 20%, and currently, there are no sellers available on BSE.

The stock reached a 52-week high today, with its 52-week high and low being Rs 314.55 and Rs 165.20, respectively. With a market capitalization of Rs 19,116 crore, the stock has demonstrated outstanding performance in recent periods, yielding a 40% return within just one month. Moreover, it has generated an impressive multibagger return of 155% in the last three years.

When analysing today’s share volumes, it becomes apparent that there has been a substantial increase of over 2.13 times in trading volumes compared to its average volumes on the BSE. As of the time of writing, it is trading at Rs 314.55 and is locked into the upper circuit limit of 20%.

KIOCL Limited, designated as a “Mini Ratna” and operating under the Ministry of Steel, Government of India, serves as a leading entity. Specialising in iron ore mining, advanced filtration technology, and the manufacturing of premium pellets, it operates as an export-focused enterprise.

Financial Performance

In the June quarter of FY24, the company’s revenue from operations experienced a significant increase of 37% YoY, rising from Rs 366 crore to Rs 501 crore. The company reported an operating loss of Rs 64 crore, compared to an operating loss of Rs 54 crore in the corresponding quarter last year. In Q4 FY23 company reported an operating profit of Rs 47 crore.

Meanwhile, the net loss of the company amounted to Rs 58 crore, net loss widened as compared to the corresponding quarter last year.

Here is the chart presentation of the company’s shares on the monthly time frame:

Upon examining the monthly candle on the stock chart, it appears to indicate a promising upcoming performance. However, when reviewing the recent quarter’s financials, they do not appear to be as impressive. Perhaps this marks the beginning of a new bull run in the stock.

Investors should consider keeping a close watch on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.