Multibagger Stock: This Tata Group company's share price doubled in 6 sessions – key factors behind rally

Multibagger Stock: TRF Limited share price, a part of the Tata Group of Companies, has doubled in the last seven trading sessions on Tuesday from Rs 169 to Rs 340.55 per share on the BSE. The multibagger stock has been hitting upper circuits consecutively for the last six days,

The counter has traded at its highest level since July 2016 and reported over 101 per cent gain in the last six trading sessions on the BSE. The massive surge in the stock could be attributed to the scrip being excluded from the Graded Surveillance Measure (GSM) surveillance on September 12, 2022.

The bourses revised the price band of the scrip to 5 per cent from 10 per cent with effect from today and had also revised the price band from 20 per cent to 10 per cent earlier on September 15, 2022.  

Shares of TRF were placed under the Graded Surveillance Measure (GSM) Framework since June 2022. Further, the equity shares were traded only once a week, that is every Monday, once the same were put under GSM stage 3 surveillance.  

The market regulator SEBI had introduced the GSM Framework to keep a tab on securities that witness an abnormal price rise and that s not commensurate with financial health and fundamentals of the company such as earnings, book value, price to earnings ratio among others.

In its exchange filing on September 16, TRF while clarifying price movement said, “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.”  

Incorporated on November 20, 1962, at Jamshedpur, TRF Limited is promoted by Tata Steel and ACC Limited. The former held a 34.11 per cent stake in the company as on June 30, 2022.

TRF has over the years executed various electromechanical jobs for bulk material handling equipment. The company is also engaged in the production of such material handling equipment at its manufacturing facility at Jamshedpur. Further, the company is engaged in providing services relating to design and engineering, supervision, etc.