Multibagger TCI Finance shares were locked in the 5% lower circuit limit during Monday’s session, January 19, falling to ₹26.95 apiece. This marked the sixth consecutive session in which the stock hit its lower circuit, as investors appeared to be booking profits following a sustained rally in recent weeks.
The NBFC stock began its sharp upward trajectory in mid-December and continued rising till January 8. The intense surge also prompted the exchanges to progressively reduce the stock’s maximum circuit limit.
According to data available on the NSE, the stock touched the 20% upper circuit limit on December 17, followed by another 20% gain in the subsequent session. This prompted the exchanges to progressively reduce the circuit limit, first to 10% and then to 5%.
However, the rally continued with the same momentum, resulting in a 227% surge in just 16 trading sessions up to January 8. During this period, the stock moved from ₹11.20 to ₹36.63.
While there is no fundamental factor behind the stellar rise, strong investor interest, visible in the form of high volumes, helped the stock emerge as one of the best performers in recent months, even as the broader market witnessed sharp volatility.
The one-way rally has contributed to a 130% surge in three months, 500% in two years, and a massive 670% over the last three years.
Small investors hold bulk of TCI Finance equity
The sharp spike in the shares has largely benefited retail shareholders, as they owned a majority 75.3% stake in the company at the end of the September quarter, according to Trendlyne shareholding data.
Over 21,400 retail shareholders with capital of up to ₹2 lakh held a cumulative 56.8 lakh shares, or a 44.19% stake in the company, while those with capital exceeding ₹2 lakh owned a cumulative 24 lakh shares, or an 18.88% stake, at the end of the September quarter.
The promoters own a 24.7% stake in the company, including Dhruv Agarwal, Giri Roadlines, and Commercial Trading Pvt. Ltd., Trendlyne data showed.
About TCI Finance
TCI Finance is a non-banking financial services company registered with the Reserve Bank of India (RBI). It offers loans against securities and financing for commercial vehicles.
Disclaimer: This story is for educational purposes only. We advise investors to check with certified experts before making any investment decisions.
