TCI Finance Stock Continues Downward Spiral
TCI Finance shares remained locked at the 5% lower circuit limit during Monday's trading session. The stock price dropped to ₹26.95 per share. This marks the sixth consecutive session where the stock has hit its lower circuit limit. Investors appear to be booking profits after a sustained rally in recent weeks.
Recent Rally and Circuit Limit Adjustments
The NBFC stock began its sharp upward movement in mid-December. The rally continued until January 8. The intense surge prompted stock exchanges to progressively reduce the maximum circuit limit for the stock.
According to National Stock Exchange data, the stock touched the 20% upper circuit limit on December 17. It gained another 20% in the following session. Exchanges then reduced the circuit limit first to 10% and then to 5%.
The rally maintained its momentum despite these adjustments. This resulted in a 227% surge across just 16 trading sessions up to January 8. During this period, the stock moved from ₹11.20 to ₹36.63 per share.
Technical Factors Drive Performance
Analysts note there is no fundamental factor behind this stellar rise. Technical factors played a significant role instead. These factors helped the stock emerge as one of the best performers in recent months. This occurred even as the broader market witnessed sharp volatility.
The one-way rally has contributed to impressive gains across multiple timeframes. The stock surged 130% over three months. It gained 500% over two years. Most remarkably, it delivered a massive 670% return over the last three years.
Retail Shareholders Benefit Most
The sharp spike in share prices has largely benefited retail shareholders. According to Trendlyne shareholding data, retail investors owned a majority 75.3% stake in the company at the end of the September quarter.
Over 21,400 retail shareholders with capital up to ₹2 lakh held a cumulative 56.8 lakh shares. This represents a 44.19% stake in the company. Those with capital exceeding ₹2 lakh owned a cumulative 24 lakh shares. This accounts for an 18.88% stake at the end of the September quarter.
Promoters own the remaining 24.7% stake in the company. This includes Dhruv Agarwal, Giri Roadlines, and Commercial Trading Pvt. Ltd., according to Trendlyne data.
About TCI Finance
TCI Finance is a non-banking financial services company registered with the Reserve Bank of India. The company offers loans against securities. It also provides financing for commercial vehicles.
Disclaimer: This story serves educational purposes only. We advise investors to consult certified experts before making any investment decisions.
