This smallcap stock has surged 42% in 2 days; nearly doubled in 13 days

Shares of John Cockerill India hit a new high of Rs 6,443, and have zoomed 98% from a level of Rs 3,250 hit on June 5, 2024.

Shares of John Cockerill India Limited (JCIL) hit a new high of Rs 6,443 as they rallied 18 per cent on the BSE in Tuesday’s intra-day trade backed by heavy volumes. In the past two days, the stock of industrial products company has surged 42 per cent. In the past 13 days, it has nearly doubled or zoomed 98 per cent from a level of Rs 3,250 hit on June 5.

At 10:03 am; JCIL was trading 15 per cent higher at Rs 6,285, as compared to 0.21 per cent gain on the BSE Sensex. The average trading volumes at the counter jumped over three-fold, with 22,000 shares changing hands on the BSE.

John Cockerill SA, the Holding Company is part of the John Cockerill Group having presence in sectors like Energy, Defence, Industry, Environment and Services. The company is a part of the Industry Sector within the John Cockerill Group.

JCIL designs, manufactures, and installs cold-rolling mills, galvanising lines, colour-coating lines, tension-levelling lines, skin-pass mills, acid regeneration plants, wet-flux lines, and pickling lines for ferrous and non-ferrous industries world-wide.

As on December 31, 2023, the order backlog stood in excess of Rs 800 crore. The company is in discussions with various customers for further new opportunities.

For the purpose of consolidation of accounts of the company with its parent company outside India, the company revised the financial year from April - March to January - December.

India is one of the key international growth markets for galvanizing and annealing lines. The galvanizing and annealing lines supplied by John Cockerill to big players like Tata Steel, AMNS and JSW will together produce an annual 2.5 MT of high-quality steel, incorporating advanced technologies for energy efficiency, optimization of zinc consumption, and corrosion resistance. These processing lines not only provide reliability, flexibility, quality, and safety but also contribute to sustainable steelmaking, aligning with the future goals of premium steelmakers, JCIL said in its annual report of December 2023.

For Indian steel companies, the second half of financial year 2024 might be challenging, but there’s optimism that China’s rebound could enhance steel prices globally. A revival in China’s steel market could also lead to a reduction in Chinese steel exports, which would be beneficial for the global ferrous industry, including India, the company said.

A prominent trend in the industry is the increasing utilization of advanced high-strength steel (AHSS), which is favored for its exceptional strength-to-weight ratio. This type of steel provides significant strength while remaining relatively lightweight, making it highly desirable for applications in automotive, construction, and manufacturing.

Manufacturers adopting AHSS can achieve improved structural integrity and performance in their products, leading to enhanced efficiency and cost-effectiveness, JCIL said.