This Tata Group Stock Hit 5% Upper Circuit For Third Day In A Row

In a falling market when there is quite a possibility that Nifty could hit 15,000 levels of aggressive Fed hike move, there is one stock from the Tata group pack i.e. hitting back to back upper circuit for third day in a row in Monday's session. If you could not make out we are talking about shares of TRF.

TRF share price trajectory

As against the Wednesday's closing price of Rs. 134.45, the stock last in Monday's trade closed at Rs. 155.6 per share on the NSE.

 

About the company

TRF is a small cap Tata group company promoted by Tata Steel and ACC. TRF has executed various electromechanical jobs for bulk material handling equipment. TRF has manufacturing facility along with design and engineering team in Jamshedpur that work in the following areas:
Electromechanical jobs
Industrial structure and fabrication
Life Cycle Services and allied services

TRF is a key and valuable contributor in the capacity enhancement plan of Tata Steel Kalinganagar (Phase 2) and other Tata Steel projects and support services in the near future.

For over five decades TRF has been supplying value added products and services and minimum cost of ownership to its esteemed customers, such as Tata Steel, Tata Power, National Thermal Power Corporation, Steel Authority of India, National Mineral development Corporation, Bharat Heavy Electric Limited, Krishnapatnam Port, etc.

 

Why the surge in the stock?

The surge in the stock is after the parent company infused Rs. 165 crore for its working capex. Shares of Tata Group company TRF continued its gaining momentum on Friday, with stock price hitting 5% upper circuit for the second straight session after its parent firm, Tata Steel, invested ₹165 crore in the company for its working capital requirements. The stock opened 5% higher at ₹140.85 and got locked at upper circuit on the BSE, in an otherwise weak broader market. In contrast, the BSE Sensex was trading 643 points lower at 54,677 levels at the time of reporting.
"The Committee of Directors, as authorised by the Board of Directors at its meeting held on March 14, 2022, has on June 8, 2022 approved the allotment of 16.5 crore, 12.17% (effective yield) non-cumulative, non-convertible, non-participating, redeemable preference shares of face value ₹10 each, at par, for consideration in the form of cash, aggregating to ₹165 crore, ('NCRPS Series-1') to Tata Steel Limited, on private placement basis, on terms and conditions as approved by the Board," said the company in the filing.

Q4Fy22 Results:

For the March ended quarter of Fy22, the firm's revenue rose sequentially, but the same was lower on a YoY basis at Rs. 49.48 crore. Also, the firm turned into a profitable entity from the loss making one with net profit at Rs. 26.64 crore as against loss of Rs. 6.89 crore in the same period last year. Earning per share has also moved from the negative zone to a positive figure of 24.21.

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