Gallant Steel shares rose 56% in just 1 month! Time to book profits or buy more?

Shares of iron and steel producer Galant Steel have risen nearly 60% in a single month. Despite market volatility on Thursday, the stock traded on BSE at Rs. It rose more than 10% to hit a fresh 52-week high of 869.

Last week, the company reported a 9% year-on-year rise in both steel production and sales in the March quarter, with production at 0.24 million tonnes and sales at 0.23 million tonnes.

The company operated at a capacity utilization of 91% during the quarter, while utilization for the full financial year 2025-26 was 86%. Pellet production rose 59% to 2,21,612 tonnes in the March quarter from 1,39,697 tonnes in the year-ago period. Sponge iron production also recorded strong growth, rising 38% to 2,44,555 tonnes from last year’s 1,77,072 tonnes.

Meanwhile, production of billets and MS bars increased by 9% year-on-year to 2,35,212 tonnes and 2,10,243 tonnes respectively.

Should you buy shares of Gallant Steel?

“Galant is in a strong long-term uptrend, consistently trading above its key moving averages, which is well aligned in a bullish configuration. After a sharp, impulsive rally, it has entered a healthy consolidation phase, forming a base around the Rs 600-700 zone, while holding above rising interest growth in AWEMA 10,” Mishra, of Religare Broking. SVP said.

A recent breakout from this range, supported by a surge in volume, signals continuation of the trend and fresh momentum. Reclaiming a higher level of lifespan with an expanding range suggests informed participation. Momentum indicators are also moving up from the neutral zone, reinforcing the bullish bias. As long as the stock holds above the breakout level (Rs. 780), Rs. Structure remains positive with potential upside towards 900-950. On the other hand, the bias is Rs. Below the 700 level will turn negative.

“The stock has seen a rally supported by high volume in the last few days. Momentum looks positive, but considering the risk-to-reward, it is advisable to look for downside opportunities only. Support for the stock is placed around Rs 740-720,” said Ruchi Jain, vice-president, technical research, Motilal Oswal.

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Shares of Gallant Steel have gained 82% in the last 1 year and 1,600% in the last 5 years.

(disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. (These do not represent the views of The Economic Times)