This Tata group stock has zoomed 101% in six days, trades at 6-year high

TRF was locked at the 5 per cent upper circuit for the sixth straight trading session after its removal from the Graded Surveillance Measure (GSM) surveillance.

Shares of TRF hit an over six-year high of Rs 339.60, and were locked at the 5 per cent upper circuit on the BSE in Tuesday's intra-day trades, with only buyers seen at the counter. The stock of Tata Group company traded at its highest level since July 2016. Tata Steel (TSL), the promoter of TRF, held 34.11 per cent stake in the company as on June 30, 2022.

In the past six trading days, the market price of TRF has zoomed 101 per cent from a level of Rs 168.80 on September 12, 2022 after the scrip was excluded from the Graded Surveillance Measure (GSM) surveillance.

As of 10:56 am, a combined around 29,000 equity shares changed hands on the BSE and NSE. There were pending buy orders for a combined 230,000 shares on these exchanges, data shows.

TRF was locked at the upper circuit for the sixth straight trading day. The exchanges have revised the price band of the scrip to 5 per cent from 10 per cent with effect from today. Earlier, on September 15, they had revised the price band from 20 per cent to 10 per cent.

The equity shares of TRF were placed under the Graded Surveillance Measure (GSM) Framework since June 2022. Further, the equity shares traded only once a week i.e. every Monday, once the same were put under GSM stage 3 surveillance. The company’s scrip was excluded from GSM surveillance from September 12, 2022.

“While the company has also observed an upward movement in the share price of its equity shares since September 13, 2022, we understand that this upward movement in price is due to the exclusion of the company’s scrip from GSM surveillance and the availability of the scrip for regular trading,” TRF said on September 16, on clarification on price movement.

Meanwhile, TRF undertakes turnkey projects of material handling for the infrastructure sector such as power and ports and industrial sector such as steel plants, cement, fertilisers and mining. The company is also engaged in production of such material handling equipments at its manufacturing facility at Jamshedpur. Further the company is engaged in provding services relating to design and engineering, supervision, etc.

On its outlook, TRF said significant improvements & growth is expected in core sectors (steel, mining and power etc), which will have a cascading effect on all associated sectors like material handling OEMs and demand for project management/construction services.

In August 2022, CARE Ratings revised the long-term rating of TRF from ‘Negative’ to ‘Stable’ on account of reduction in outside liability through the support of funds received from the parent TSL. Furthermore, the company has recorded continuous decline in cash losses over the past two years and CARE envisages that the company is likely to turn marginally cash positive in FY23, largely on the back of order-book execution for TSL, the rating agency said in rationale.