Is KIOCL overvalued or undervalued?

As of November 10, 2022, KIOCL Ltd. is considered overvalued and risky, with negative key ratios indicating poor earnings and operational efficiency, despite short-term stock performance that has outpaced the Sensex.

As of 10 November 2022, KIOCL Ltd. has moved from a valuation grade of very expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as overvalued. Key ratios highlight this concern, with a PE ratio of -93.76, an EV to EBITDA of -93.03, and a ROCE of -20.42%. These figures suggest that the company's earnings and operational efficiency are under severe strain.<BR><BR>In comparison to its peers, KIOCL's valuation metrics stand out negatively; for instance, its PE ratio is substantially lower than the industry average, which typically hovers around more sustainable levels. The negative PEG ratio of 0.00 further emphasizes the lack of growth potential relative to its price. Despite a recent short-term stock performance that outpaced the Sensex over one week and one month, the longer-term returns reveal a troubling trend, with a year-to-date decline of -20.98% compared to the Sensex's 5.58%. This combination of factors strongly supports the conclusion that KIOCL is overvalued in the current market environment.

What does KIOCL do?

Kudremukh Iron Ore Company Limited (KIOCL) is a Central Public Sector Undertaking involved in iron ore mining, beneficiation, and pellet production. As of March 2025, it reported net sales of ₹247 Cr and a net loss of ₹37 Cr, with a market cap of ₹19,251 Cr.

Overview: <BR>Kudremukh Iron Ore Company Limited (KIOCL) is a Central Public Sector Undertaking engaged in Iron Ore Mining, Beneficiation, and the production of high-quality Pellets, operating within the Ferrous Metals industry and classified as a Mid Cap company.<BR><BR>History: <BR>KIOCL was established in 1976 as a 100% Export Oriented Unit. The latest quarterly results reported are for March 2025, showing net sales and profit figures.<BR><BR>Financial Snapshot: <BR>Most recent Net Sales: 247 Cr (Quarterly Results - Mar 2025) <BR>Most recent Net Profit: -37 Cr (Quarterly Results - Mar 2025) <BR>Market-cap value: Rs 19,251 Cr (Mid Cap)<BR><BR>Key Metrics: <BR>P/E: N/A <BR>Industry P/E: 8 <BR>Dividend Yield: 0.00% <BR>Debt Equity: -0.31 <BR>Return on Equity: -11.95% <BR>Price to Book: 11.13<BR><BR>Contact Details: <BR>Address: Block II, Koramangala Bangalore Karnataka : 560034 <BR>Phone: 91-80-25531461-470 <BR>Email: cs@kioclltd.in <BR>Website: http://www.kioclltd.in

Who are in the management team of KIOCL?

As of March 2023, KIOCL's management team includes T Saminathan (Chairman, MD & CEO), Binay Krushna Mahapatra (Executive Director, Commercial), Ganti Venkat Kiran (Executive Director, Production), and several non-executive and independent directors. They collectively oversee the company's governance and strategic direction.

As of March 2023, the management team of KIOCL includes the following individuals:<BR><BR>1. T Saminathan - Chairman, MD & CEO<BR>2. Binay Krushna Mahapatra - Executive Director (Commercial)<BR>3. Sukriti Likhi - Non Executive Director / Nomin<BR>4. Devidatta Satapathy - Non Executive Director / Nomin<BR>5. Changdev Sukhadev Kamble - Independent Director<BR>6. Usha Narayan - Independent Director<BR>7. Shashank Priya - Non Executive Director / Nomin<BR>8. Ganti Venkat Kiran - Executive Director (Production)<BR>9. Sanjay Roy - Nominee (Govt)<BR><BR>These members play various roles within the company, contributing to its governance and strategic direction.

When is the next results date for KIOCL?

No Upcoming Board Meetings

Has KIOCL declared dividend?

Yes, KIOCL Ltd has declared a 7% dividend, amounting to 0.7 per share, with an ex-date of September 8, 2022. However, the dividend yield is 0%, and total returns have varied significantly over different periods, showing recent declines in the short term but substantial gains over the long term.

KIOCL Ltd has declared a 7% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 7%<BR>- Amount per share: 0.7<BR>- Ex-date: 08 Sep 2022<BR><BR>Dividend Yield: 0%<BR><BR>Total Returns by Period:<BR>In the last 6 months, KIOCL Ltd experienced a price return of -16.79%, with no dividend return, resulting in a total return of -16.79%.<BR><BR>Over the past year, the company saw a price return of -23.82%, with no dividend return, leading to a total return of -23.82%.<BR><BR>In the last 2 years, KIOCL Ltd achieved a price return of 63.65%, with no dividend return, resulting in a total return of 63.65%.<BR><BR>For the 3-year period, the price return was 63.69%, with a dividend return of 0.40%, culminating in a total return of 64.09%.<BR><BR>In the 4-year period, the price return was 8.27%, with a dividend return of 1.14%, resulting in a total return of 9.41%.<BR><BR>Over the last 5 years, KIOCL Ltd experienced a significant price return of 267.17%, with a dividend return of 3.77%, leading to a total return of 270.94%.<BR><BR>Overall, KIOCL Ltd has declared a dividend, but the dividend yield remains at 0%, indicating that the recent dividends have not significantly contributed to the returns. The total returns over various periods show a mixed performance, with substantial gains over the longer term despite recent declines in shorter periods.

Who are the peers of the KIOCL?

KIOCL's peers include JSW Steel, Tata Steel, Jindal Steel, and others, with varying management risks and growth rates. KIOCL has below-average growth and management risk, with a 1-year return of -23.91%.

Peers: The peers of KIOCL are JSW Steel, Tata Steel, Jindal Steel, Lloyds Metals, SAIL, Sarda Energy, NMDC Steel, Jai Balaji Inds., Kirl. Ferrous, and Sunflag Iron.<BR><BR>Quality Snapshot: Excellent management risk is observed at Lloyds Metals and Kirl. Ferrous, while Good management risk is found at JSW Steel, Tata Steel, Jindal Steel, SAIL, and the rest. Average management risk is present at Sarda Energy and Jai Balaji Inds., while Below Average management risk is noted for KIOCL and NMDC Steel. Growth is Excellent at Lloyds Metals, Good at JSW Steel, Jindal Steel, Sarda Energy, and the rest, Average at Tata Steel, while Below Average growth is seen at KIOCL, SAIL, and NMDC Steel. Capital Structure is Excellent at Lloyds Metals, Good at Jindal Steel, KIOCL, Kirl. Ferrous, and Sunflag Iron, Average at Tata Steel, and Below Average at JSW Steel, SAIL, and NMDC Steel.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Lloyds Metals at 105.63%, while the lowest is NMDC Steel at -38.26%. KIOCL's 1-year return is -23.91%, which is higher than NMDC Steel's but lower than Lloyds Metals. Additionally, the six-month return is negative for NMDC Steel, Jai Balaji Inds., and Kirl. Ferrous.

Who are the top shareholders of the KIOCL?

The top shareholder of KIOCL is the President of India, owning 99.03% of the shares, while individual investors hold approximately 0.8%. There are also minimal holdings from mutual funds and foreign institutional investors.

The top shareholder of KIOCL is the President of India, holding a significant 99.03% of the shares. There are no pledged promoter holdings, and individual investors hold about 0.8% of the shares. Additionally, there are 4 mutual fund schemes and 8 foreign institutional investors (FIIs) involved, but their holdings are minimal at 0.0% and 0.02%, respectively.

How big is KIOCL?

As of 24th July, KIOCL Ltd has a market capitalization of 21,888.00 Cr and reported Net Sales of 590.46 Cr, with a Net Profit loss of 204.58 Cr in the latest four quarters. Shareholder's Funds were valued at 1,918.50 Cr, and Total Assets amounted to 2,427.32 Cr as of March 2024.

As of 24th July, KIOCL Ltd has a market capitalization of 21,888.00 Cr, categorizing it as a Large Cap company.<BR><BR>In the latest four quarters, KIOCL reported Net Sales of 590.46 Cr. However, the company experienced a loss of 204.58 Cr in Net Profit during the same period.<BR><BR>The latest annual reporting period for KIOCL is March 2024. At that time, Shareholder's Funds were valued at 1,918.50 Cr, while Total Assets amounted to 2,427.32 Cr.

Are KIOCL latest results good or bad?

KIOCL's latest results are disappointing, with a 38.29% decline in net sales and a profit after tax of Rs -74.65 crore, indicating ongoing financial difficulties. Despite a slight increase in non-operating income, the overall performance suggests significant challenges for the company.

KIOCL's latest financial results for the quarter ending June 2025 indicate a challenging situation for the company. The net sales have significantly declined by 38.29% year-on-year, totaling Rs 90.94 crore. This sharp drop raises concerns about the company's sales performance and overall market position.<BR><BR>Additionally, the profit after tax (PAT) for the last six months stands at Rs -74.65 crore, reflecting a year-on-year decline of 35.06%. This negative trend in profitability is particularly troubling and suggests ongoing financial difficulties.<BR><BR>On a slightly more positive note, KIOCL did report its highest non-operating income in the last five quarters, amounting to Rs 17.15 crore. However, analysts warn that this increase may not be sustainable in the long term.<BR><BR>Overall, the combination of declining sales and profitability, along with the stock being rated as a 'Strong Sell,' paints a picture of a company facing significant challenges. Therefore, the latest results can be characterized as disappointing.

How has been the historical performance of KIOCL?

KIOCL's historical performance has seen significant declines, with net sales dropping from 3,006.21 crore in March 2022 to 590.46 crore in March 2025, resulting in substantial losses in operating profit and profit after tax. However, cash flow from operating activities improved to 343 crore in March 2025, indicating potential operational recovery.

Answer:<BR>The historical performance of KIOCL has shown significant fluctuations over the years, particularly in terms of net sales, operating profit, and profit after tax.<BR><BR>Breakdown:<BR>KIOCL's net sales have decreased sharply from 3,006.21 crore in March 2022 to 590.46 crore in March 2025. Other operating income has also diminished, dropping from 22.25 crore in March 2021 to just 0.06 crore in March 2025. Consequently, total operating income has followed a similar downward trend, falling from 3,006.45 crore in March 2022 to 590.52 crore in March 2025. The company's total expenditure, excluding depreciation, peaked at 2,626.32 crore in March 2022 but has since decreased to 790.93 crore in March 2025. This has resulted in operating profit (PBDIT) turning negative, with a loss of 200.41 crore in March 2025 compared to a profit of 380.13 crore in March 2022. Profit before tax has also declined sharply, resulting in a loss of 205.07 crore in March 2025, while profit after tax has similarly fallen to a loss of 204.58 crore. The company's total liabilities decreased from 2,907.68 crore in March 2023 to 2,276.28 crore in March 2025, and total assets have also declined from 2,907.68 crore in March 2023 to 2,276.28 crore in March 2025. Cash flow from operating activities has improved to 343 crore in March 2025, compared to a negative cash flow of 309 crore in March 2023, indicating a potential recovery in operational efficiency despite the overall financial losses.

Is KIOCL technically bullish or bearish?

As of December 2, 2025, the trend is mildly bullish due to daily moving averages, but caution is advised from mixed weekly indicators and a lack of clear trends in Dow Theory.

As of 2 December 2025, the technical trend has changed from sideways to mildly bullish. The current stance is mildly bullish, driven primarily by the daily moving averages indicating a bullish signal. However, the weekly MACD and KST are mildly bearish, which suggests some caution in the short term. The monthly MACD remains bullish, providing a stronger long-term outlook. The overall mixed signals from the weekly indicators, alongside the lack of clear trends in Dow Theory, indicate a cautious bullish sentiment.

Why is KIOCL falling/rising?

As of 20-Dec, KIOCL Ltd's stock price is rising to 334.60, reflecting a 2.18% increase after a trend reversal. Despite this short-term gain and increased investor interest, the company faces significant long-term financial challenges, including negative year-to-date returns and a poor ability to service its debt.

As of 20-Dec, KIOCL Ltd's stock price is rising, currently at 334.60, reflecting a change of 7.15 (2.18%) upward. This increase follows a trend reversal after four consecutive days of decline, indicating a potential shift in market sentiment. The stock has outperformed its sector by 1.71% today, suggesting that it is gaining traction relative to its peers.<BR><BR>Moreover, the stock reached an intraday high of Rs 337.95, which is a 3.21% increase, further demonstrating positive momentum. Additionally, there has been a rise in investor participation, with delivery volume increasing by 2.23% against the five-day average, indicating growing interest from investors.<BR><BR>However, it is important to note that despite the recent rise, KIOCL has faced significant challenges over the longer term. The company has reported negative returns year-to-date of -16.32% and a one-year decline of -10.02%, which contrasts sharply with the Sensex's positive performance of +8.69% and +7.21%, respectively. The company's financial health remains a concern, with operating losses and a weak ability to service its debt, as indicated by a poor EBIT to Interest ratio of 0.70.<BR><BR>In summary, while KIOCL's stock is currently rising due to a short-term reversal and increased investor interest, the underlying financial challenges and long-term performance issues suggest caution for investors.

Which are the latest news on KIOCL?

Should I buy, sell or hold KIOCL?