This trading firm's shares zoomed 114% in a month; company clarifies on stock price rise

Shares of Tinna Trade Ltd continued to witness sharp gains for the fifth straight session in Friday's deals. The stock jumped 10 per cent to hit its upper price band of Rs 56.80. At this price, the multibagger scrip has gained 114.34 per cent in the past one month and 126.75 per cent in six months.

Today, stock exchanges sought clarification from Tinna Trade on the movement in share price. The trading firm, in response, said, "We hereby confirm that there are no such material event, information that have a bearing on the operation/performance of the company, which is price-sensitive and which may result in the significant movement in the share price and volume. Please be informed that we are not aware of the reason of movement in the price of our shares. The increase in the share price is purely market driven and due to market conditions."

The company has been diligently disclosing all the material information to the various stakeholders, it added.

On BSE, a total of 9,051 shares changed hands today. The figure was higher than the two-week average volume of 15,000 shares. Turnover on the counter stood at Rs 5.14 lakh, commanding a market capitalisation (m-cap) of Rs 48.65 crore. There were 55,860 buy orders today against sell orders of nil shares.

As of September 2023, promoters held 73.81 per cent stake in the company. Tinna Trade is subsidiary of Tinna Rubber & Infrastructure Ltd.

The company's standalone net profit came at Rs 2.65 lakh in the second-quarter (Q2 FY24) compared to a loss of Rs 65.76 lakh in the year-ago period. Tinna Trade's total income jumped 99.17 per cent to Rs 76.48 crore in Q2 FY24 as against Rs 38.40 crore in the corresponding period last year.

On technical setup, the counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The scrip's 14-day relative strength index (RSI) came at 89.85. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a negative price-to-equity (P/E) ratio of 90.08 against a price-to-book (P/B) value of 1.52.

Tinna Trade has been placed under the Enhanced Surveillance Measure (ESM) framework. The ESM framework was introduced to monitor volatile price movements in micro-small cap companies. These companies are on main board with market capitalisation (m-cap) of less than Rs 500 crore.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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