Welcome another article on KIOCL Ltd. Share price target 2023, 2024, 2025 till 2030. in this article, we cover all information about KIOCL Ltd. using its fundamental and technical analysis which can help us determine whether it is good for long-term investment or not.
So before we move in depth we have to understand what the company is doing business so let’s start.
The full form of the KIOCL Ltd. Kudremuch Iron Ore Company Limited, and it is central public undertaking the company by the ownership of the Ministry of Steel, GOI. The head office of the company is located in Bangalore.
Business Areas
KIOCL Ltd is mainly engaged in the business of manufacturing and selling iron ore pellets and pig iron. These iron ore pellets are used by steelmakers to produce steel. The pig iron is a type of cost iron which can be used in a variety of industries, including construction, automotive, and engineering.
Plants and production
KIOCL Ltd has a pelletisation plant in Mangalore, Karnataka, with a production capacity of 3.5 million tonnes per annum (MTPA). the company sources iron ore from other miners in India and abroad.
KIOCL Ltd. Also has a blast furnace unit in Mangalore, which produces foundry-grade pig iron and the production capacity is 2.16 million tonnes per annum.
KIOCL Ltd’s Customer base
KIOCL has both domestic and international customers and major customers are steelmakers, foundries, and engineering companies.
Major customers:
Steelmakers: Tata Steel, JSW Steel, Hyundai Steel, SAIL, Arcelor Mittal, POSCO, , China Steel Corporation, SSAB, Nippon Steel & Sumitomo Metal Corporation, and Nucor.
Foundries: Birla Foundries, Larsen & Toubro, Tata Foundries, and Suzlon Energy.
Engineering companies: ABB, ThyssenKrupp, Siemens, and GE.
Management of KIOCL Ltd.
Shri Madan Mohan Tripathi: Chairman & Managing Director
Shri Sanjay Kumar: Director (Operations)
Shri S.K. Singh: Director (Finance)
Shri B.V.R. Mohan Rao: Independent Director
Shri S.K. Gupta: Independent Director
Shri R.K. Agarwal: Independent Director
Shri A.R. Ansari: Independent Director
Dr. S.K. Roy: Independent Director
Shri R.K. Sinha: Independent Director
Shri M.P. Singh: Independent Director
Shri Madan Mohan Tripathi, Chairman & Managing Director of KIOCL Ltd., has over 35 years of experience in the mining and steel industry. He has held various senior positions in SAIL, NMDC, and KIOCL Ltd.
Shri Sanjay Kumar, Director (Operations) of KIOCL Ltd., is a qualified mining engineer with over 30 years of experience in the mining industry. He has held various senior positions in NMDC and KIOCL Ltd.
Shri S.K. Singh, Director (Finance) of KIOCL Ltd., is a qualified Chartered Accountant with over 30 years of experience in the finance and accounting field. He has held various senior positions in SAIL, NMDC, and KIOCL Ltd.
KIOCL company profile
| Company | KIOCL Ltd. |
| Sector | Mining & Minerals |
| Chairman | Shri Madan Mohan Tripathi |
| Website | https://www.kioclltd.in/ |
Fundamental information about KIOCL Ltd.
| Market cap | 28,953.26 Cr. |
| No. Of Share | 60.78 Cr. |
| P/B | 14.89 |
| Book value | 31.99 |
| CASH | 773.29 Cr. |
| DEBT | 411.65 Cr. |
| Dividend yeild | Dividend yield |
| EPS | -1.84 |
| ROE | -4.71% |
| ROCE | -4.77% |
| Sales growth | -48.66% |
| Profit growth | -131.16% |
Financial Analysis of KIOCL Company
Income: The income of KIOCL Ltd. Has grown steadily in recent years, the company generated an income of Rs. 3,363 Cr. In the year 2015-16 to Rs. 5,437 Cr. In the year 2022-23.
Profit: The Profit of the company has also grown in recent years, from Rs. 280 Cr. In FY2015-16 to Rs. 424 Cr. In FY2022-23. Because of this, the company’s profit margin has declined from 8.3% in 2015 to 7.8% in FY 2022-23. this is due to the higher cost of production.
Balance Sheet: The company has a strong balance sheet with a low debt-to-equity ratio of 0.34.
Cash Flow: The company’s cash flow from its operations has been positive in recent years. This is an average of Rs. 500 Cr. Per year. And also generating positive cash flow from investing activities.
Ratio analysis can help us to understand the financial health of the company and we can easily understand whether the company is good for long-term investment or not. So here are some ratios which us to understand the financial health of the company.
PE Ratio: is used to measure how much an investor is willing to pay for a share for earning every rupee. Useally low PE is considered as undervalued so KIOCl has a PE ratio of -258.67 which is low, so the stock is now undervalued.
ROA: return on asset is used to measure how effectively a company can earn a return on its investment in assets. A higher ROA is better for investment but in this case, the ROA of KOICL is -3.17% which bad sign for future performance.
ROE: Return on Equity is used to measure the ability of the firm to generate profits from its shareholder’s investment in the company. KIOCL has a -4.71% ROE which is bad for investors.
Sales growth: The sales growth of the company for last year is -48.66%, for the last 3 years is -7.3%, and for the last 5 years is -0.75%. which is bad for the company.
PnL Statement of KIOCL Ltd.
| Year | Revenue (Rs. crores) | Profit before tax (Rs. crores) | Profit after tax (Rs. crores) |
| 2022-23 | 4,661.38 | 1,050.61 | 688.35 |
| 2021-22 | 3,948.19 | 775.98 | 507.99 |
| 2020-21 | 3,359.61 | 583.11 | 380.07 |
| 2019-20 | 3,088.14 | 414.18 | 270.04 |
| 2018-19 | 2,858.83 | 327.41 | 214.76 |
KIOCL Ltd’s revenue profitability has been increasing steadily over the past 5 years.
Competitors of KIOCL Ltd.
Domestic:
NMDC Ltd.
SAIL
Tata Steel
JSW Steel
Essar Steel
International:
Vale (Brazil)
BHP (Australia)
Rio Tinto (UK)
Fortescue Metals Group (Australia)
Anglo-American (UK)
KIOCL financial performance
KIOCL Ltd has been delivering strong financial performance in recent years. The company’s revenue and profitability have been increasing steadily. In the financial year 2022-23, KIOCL Ltd’s revenue was Rs. 4,661.38 crores, up from Rs. 3,948.19 crores in the previous financial year. The company’s profit after tax was Rs. 688.35 crores in the financial year 2022-23, up from Rs. 507.99 crores in the previous financial year.
KIOCL Dividend History
KIOCL pays dividend 0.79 Rs. Per share and yield is 2.0% in 2022-23. in 2021-22 paid 0.70 Rs. per share and the yield is 1.8%. the dividend yield of the company is around 2%.
Share Holding Pattern of KIOCL Ltd.
Promoter holding in the company is 99.03%. FII and DII holding in the company is 0% and 0.13% but the public holding in the company is only 0.84% which is good for the stability of the company.
Technical Analysis of KIOCL Ltd.
Technical analysis helps us to understand how stock prices react in different market conditions and where to enter and where to exit from the stock. So to analyze the stock’s next movement we are taking a weekly chart to understand it.
As of 18th Oct 2023 stock is trading at 436 and the stock is now its a time high of 502. If the stock sustains above the 460 level and continues its uptrend its first target will be 502, second target will be 787 and the third target will be 953.
The major support for KIOCL is 399 and the major resistance will be 460, second resistance will be 500.
KIOCL Ltd. Share Price Targets
| Year | Minimum | Maximum |
| 2023 | 437 | 502 |
| 2023 | 682 | 787 |
| 2025 | 802 | 953 |
| 2030 | 1126 | 1239 |
KIOCL Ltd. Share Price Target 2023
The company looks to start mining at Devadari, in Karnataka and the company seeks the steel ministry’s intervention to resolve an issue with the state. If the issue is resolved then the share target for 2023 will minimum of 437 and a maximum will 502.
KIOCL Ltd. Share Price Target 2024
The company has a strong balance sheet which will boost the future growth of the company so the share price target for 2024 will be a minimum of 682 and a maximum will be 787.
KIOCL Ltd. Share Price Target 2025
The demand for iron ore increasing rapidly so the share price target will be a minimum of 802 and maximum of 953.
KIOCL Ltd. Share Price Target 2030
The share price target for 2030 will be a minimum of 1126 and the maximum will be 1239.
Conclusion:
KIOCL Ltd. Has a strong track record and a good management team. The company’s balance sheet is also quite impressive. And increasing demand for steel and we have to take consideration. So over it is a good company for investment. So before investment check all market conditions and sector trends. If you like this article rate this and forward this to your friends and family and comment below.
Read also: MTAR Technologies Share Fundamentals and Technical Analysis
