This penny stock under ₹20 erases 12-month losses with 74% rally in just four sessions

TCI Finance, a small-cap stock, has been making notable gains in the Indian stock market, with its recent sharp rally drawing the attention of Dalal Street investors searching for the reasons behind the stellar move.

The NBFC stock was locked in another 10% upper circuit limit in Monday's session on December 22, reaching ₹19.50 apiece, marking its fourth straight session of hitting the maximum limit.

After locking in a 20% circuit limit on December 17 and December 18, the exchanges revised the limit downward for the stock to 10%. However, it continued with the same momentum, thereafter, resulting in a 74% rally in just four trading sessions.

The recent rally has pushed month-to-date returns to 75%, and if the stock holds the momentum until the end of the month, it will mark its biggest monthly surge since June 2024, when it jumped 120%.

While there is no fundamental factor behind the stellar rise, analysts say technical factors played a role, helping the stock emerge as one of the best performers in December.

Meanwhile, the sharp rally has caught not only the investors' attention but also the exchanges, which sought clarification behind the sharp movement in the share price.

In a reply on December 20, the company stated that there has been no material information or announcement required to be shared with the stock exchanges under applicable regulations, nor has any such information been withheld.

“The Company has been complying with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI LODR Regulations’) and keeps its investors updated with all events, information, etc., which may have a bearing on the operations and performance of the Company, including all price-sensitive information," TCI Finance said in its Saturday regulatory filing.

December rally fuels sharp turnaround

The December rally has also helped trim the stock’s year-to-date losses and turned them positive at 5%. The sharp surge has further enabled the stock to recover its 12-month losses in just four trading sessions, emerging as a major turnaround story in 2025.

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.

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