Penny stock alert! RattanIndia Power shares zoomed 45% in 5 sessions; is it time to book profit?

Shares of RattanIndia Power Ltd continued their strong upward move for the fifth straight session on Wednesday's trade. The penny stock jumped 12.71 per cent to hit a high of Rs 16.14. At this price, it has ascended by 45.28 per cent in just five trading days.

The counter recorded heavy trading volume today, accompanied by significant price action. Around 3.38 crore shares changed hands today at the time of writing this story, higher than the two-week average volume of 94.44 lakh. Turnover on the counter came at Rs 52.98 crore, commanding a market capitalisation (m-cap) of Rs 8,500.88 crore.

Exchanges BSE and NSE have sought clarification from the company over the share price movement. The company, in response, said, "We wish to clarify that the Company is not aware of any reason for the recent significant increase in the trading volume of its shares. The movement in price and volume is purely market driven. As a listed entity, the Company has no control over trading activity in the secondary market."

Technically, the scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 87.11. A level below 30 is defined as oversold while a value above 70 is considered overbought.

A few analysts suggested that Rs 17-18 could act as the resistance range. One of them advised booking profits at current levels.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted that support for the stock has been uplifted towards the Rs 14-sub zone, followed by Rs 12 level after the recent breakout. The next potential resistance is visible around the Rs 17-18 zone, he added.

Sebi-registered independent research analyst AR Ramachandran said, "RattanIndia Power is bullish but overbought on daily charts but also very overbought with next resistance at Rs 18.22. Investors should be booking profits as a daily close below support of Rs 14.32 could lead to a downward target of Rs 11.9 in the near term."

The company's stock has a negative price-to-earnings (P/E) ratio of 8.50 against a price-to-book (P/B) value of 1.83. Earnings per share (EPS) stood at (-)1.87 with a return on equity (RoE) of (-)21.48. According to Trendlyne data, RattanIndia Power has a one-year beta of 1.3, indicating high volatility.

As of March 2025, promoters held a 44.06 per cent stake in the company.