This Tata Group share has soared 101% in six days and is trading at a 6-year high

Shares of TRF hit an over-six-year high at 339.60 rupees and were locked in the 5% upper circuit of BSE in intraday trading on Tuesday, with only buyers seen at the counter. Tata Group shares traded at their highest level since July 2016. Tata Steel (TSL), the promoter of TRF, held 34.11% of the company’s capital as of June 30, 2022.

Over the past six trading days, the market price of TRF has climbed 101% from a level of Rs 168.80 on September 12, 2022 after the certificate was excluded from the watch of the graduated surveillance measure (GSM).

At 10:56 a.m., approximately 29,000 shares combined changed hands on BSE and ESN. There were pending buy orders for a total of 230,000 shares on those exchanges, according to the data.

TRF was locked in the upper circuit for the sixth consecutive trading day. Exchanges have revised the certificate price range to 5% from 10% as of today. Previously, on September 15, they revised the price range from 20% to 10%.

Shares of TRF have been placed under the Graduated Monitoring Measure (GSM) framework since June 2022. In addition, the shares have only traded once a week, i.e. every Monday, once they have been placed under GSM Level 3 monitoring. The company’s certificate has been excluded from GSM monitoring as of September 12, 2022.

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

Meanwhile, TRF undertakes turnkey material handling projects for the infrastructure sector such as energy and ports and the industrial sector such as steel mills, cement, fertilizers and mining. The company is also engaged in the production of such material handling equipment at its manufacturing plant in Jamshedpur. In addition, the Company is engaged in the provision of services related to design and engineering, supervision, etc.

Regarding its outlook, TRF said that significant improvements and growth are expected in key sectors (steel, mining and energy, etc.), which will have a cascading effect on all associated sectors such as material handling equipment manufacturers and demand for project/construction management services.

In August 2022, CARE Ratings revised the TRF’s long-term rating from ‘Negative’ to ‘Stable’ due to reduced external liability through support from funds received from parent company TSL. Additionally, the company has experienced a continued decline in cash losses over the past two years and CARE expects the company to become slightly cash positive in FY23, largely due to backlog execution. orders from TSL, the rating agency said in its rationale. .

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