NewsStocksTCI Finance Hits Lower Circuit for Sixth Consecutive Day Despite 130% Three-Month RallyTCI Finance Hits Lower Circuit for Sixth Consecutive Day Despite 130% Three-Month Rally
TCI Finance shares hit the 5% lower circuit for the sixth consecutive day on January 19, trading at ₹26.95 as investors booked profits after a remarkable rally. The stock had surged 227% in 16 trading sessions from mid-December to January 8, prompting exchanges to reduce circuit limits from 20% to 5%. Despite recent corrections, the NBFC stock has delivered exceptional returns of 130% in three months, 500% in two years, and 670% over three years, primarily benefiting retail investors who hold 75.3% of the company's equity.
*this image is generated using AI for illustrative purposes only.
TCI Finance shares remained locked at the 5% lower circuit limit during Monday's trading session on January 19, falling to ₹26.95 per share. This marked the sixth consecutive session where the stock hit its lower circuit, as investors appeared to book profits following a sustained rally in recent weeks.
Remarkable Rally Triggers Circuit Limit Adjustments
The NBFC stock began its sharp upward trajectory in mid-December and continued rising until January 8. The intensity of this surge prompted exchanges to progressively reduce the stock's maximum circuit limit to manage volatility.
| Parameter: | Details |
|---|---|
| Initial Circuit Limit: | 20% (December 17) |
| Subsequent Gain: | 20% (next session) |
| Revised Limits: | 10%, then 5% |
| Peak Rally Period: | Mid-December to January 8 |
According to NSE data, the stock touched the 20% upper circuit limit on December 17, followed by another 20% gain in the subsequent session. This prompted exchanges to first reduce the circuit limit to 10% and then to 5%.
Exceptional Performance Metrics
Despite the recent correction, TCI Finance has delivered outstanding returns across multiple timeframes. The rally continued with sustained momentum, resulting in a 227% surge in just 16 trading sessions up to January 8, with the stock moving from ₹11.20 to ₹36.63.
| Timeframe: | Returns |
|---|---|
| Three Months: | 130% |
| Two Years: | 500% |
| Three Years: | 670% |
| 16 Trading Sessions: | 227% (Dec-Jan 8) |
While no fundamental factor explains the stellar rise, strong investor interest, evidenced by high trading volumes, helped the stock emerge as one of the best performers in recent months despite broader market volatility.
Retail Investors Drive Ownership Structure
The sharp spike in shares has largely benefited retail shareholders, who owned a majority 75.3% stake in the company at the end of the September quarter, according to Trendlyne shareholding data.
| Investor Category: | Shareholding | Stake (%) |
|---|---|---|
| Retail (up to ₹2 lakh): | 56.8 lakh shares | 44.19% |
| Retail (above ₹2 lakh): | 24 lakh shares | 18.88% |
| Total Retail: | 80.8 lakh shares | 75.3% |
| Promoters: | - | 24.7% |
Over 21,400 retail shareholders with capital of up to ₹2 lakh held the largest portion of the company. The promoters, including Dhruv Agarwal, Giri Roadlines, and Commercial Trading Pvt. Ltd., own a 24.7% stake.
About the Company
TCI Finance operates as a non-banking financial services company registered with the Reserve Bank of India (RBI). The company's business model focuses on:
- Loans against securities
- Commercial vehicle financing
- Other NBFC services under RBI regulations
The recent trading pattern reflects typical profit-booking behavior after an extraordinary rally, with the stock's performance highlighting the potential volatility in small-cap investments.
Historical Stock Returns for TCI Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.97% | -22.59% | +140.54% | +77.94% | +83.89% | +879.64% |
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