Jayaswal Neco zooms 54% in 2 weeks. What's driving smallcap stock price?

Shares of Jayaswal Neco Industries have more than doubled, or zoomed 113 per cent, from its 52-week low of ₹26.06 per share, hit in April

Shares of Jayaswal Neco Industries hit a 52-week high of ₹55.48, as they rallied 7 per cent on the BSE in Tuesday's intra-day trade amid heavy volumes in an otherwise weak market. 

 

The stock price of the small-cap iron and steel products company surpassed its previous high of ₹54.95, touched on September 11, 2024.

 

Till 12:41 PM, a combined 115.16 million equity shares have changed hands on the NSE and BSE. The BSE Sensex was down 0.32 per cent at 80,756.

 

In the past two weeks, the market price of Jayaswal Neco Industries has appreciated by 54 per cent from the level of ₹35.92 on July 22, 2025. It has more than doubled or zoomed 113 per cent from its 52-week low of ₹26.06, which it had hit on April 7, 2025.  READ STOCK MARKET LIVE UPDATES TODAY

ACRE offloads entire stake in Jayaswal Neco 

Assets Care & Reconstruction Enterprise Ltd. (ACRE) has offloaded its entire stake in Jayaswal Neco Industries via an open market transaction. As of June 30, 2025, ACRE held 970.9 million equity shares in the company, according disclosure made by the company. CLICK HERE FOR MORE DETAILS

Jayaswal Neco Industries Q1 results 

For the April to June 2025 quarter (Q1FY26), Jayaswal Neco Industries has reported a profit after tax (PAT) of ₹93.02 crore, as against a loss of ₹31.68 crore in Q1FY25. The company had posted PAT of ₹101.64 crore in Q4FY25. Revenue from operations grew 14.7 per cent year-on-year (Y-o-Y) at ₹1,649 crore.

 

The company reported earnings before interest, taxes, depreciation, and amortisation (Ebitda) of ₹315 crore in Q1FY26, up 90 per cent from the same period the previous year, while the Ebitda margins jumped to 19 per cent from 11 per cent in the corresponding quarter of the previous year.

 

The company said it has reduced its financial leverage during the quarter by reducing its secured debt outstanding by around 6 per cent. The firm’s borrowing has reduced to ₹2,557 crore in Q1 this fiscal, from ₹3,227 crore in FY24.  

Jayaswal Neco Industries outlook 

India Ratings and Research (Ind-Ra) expects the funds flow from operations to remain steady, on the back of improved capacity utilisation and product mix, along with an increased proportion of value-added products, which is likely to support per-tonne Ebitda.

 

The rating agency expects the Ebitda margins to be at 17 per cent-19 per cent in FY25-FY26, supported by 100 per cent use of captive iron ore mines along with periodic price revisions by original equipment manufacturers (OEMs), enabling the company a pass-through of raw material cost, albeit with a time lag. 

 

The company's ability to raise/refinance a portion of the high-cost, long-term debt at favourable terms and successful tie-up of funds from domestic lenders for meeting working capital requirements will be a key monitorable. This would improve the balance sheet liquidity while also improving the financial flexibility, thereby providing an incremental liquidity buffer, the rating agency had said in its rationale.  ALSO READ: LIC Housing posts weak Q1 results; JM Financial, MOFSL share stock strategy

Jayaswal Neco Industries overview 

Jayaswal Neco Industries primarily is in the business of manufacturing alloy steels – wire rods, bars, bright bars, along with steel billets, pig iron/skull, sponge iron, pellets and iron & steel castings.

 

The company's end-product of the industry segment is alloy steel (long products) produced in different grades, shapes and sizes, which is primarily used in the automotive segment along with engineering, industrial, defence and construction. Reputed automotive OEMs have selected the company as an approved vendor and have longstanding relationships with it.