Whatsup in TRF !? Up over 16% at Rs 157 yesterday ! Higher than Usual Volumes but Low , with only 19% delivery stats !…Previous Day Tuesday closing was Rs 134.95
On BSE ,TRF zoomed to close at Rs 157.05 after touching a High of Rs 160.60…just below upper circuit of Rs 161.90
The Volume traded was 707152 with delivery status of only 91588 shares =>that’s just 12.95% !
Two week average volume is 1.4 lakh shares daily and that includes yesterdays volumes !
There was a Bulk deal of 55399 shares with the same Buyer and Seller,Crossseas Capital Services Private Ltd…an old name that crops up in many bulk deals …the Purchase and Sale were at Rs 149.88 and Rs 149.32 respectively
TRF is a Tata Group Company that has had a terrible Operating loss making FY 13 when it skipped dividend after giving 40% in FY 12….loss continues in FY 14….It’s into Material Handling Equipment for the Infrastructure Projects Sector…the slowdown in the economy and the delaying ,deferring and stalling of big projects in the Mining,Power and Manufacturing Sectors meant lower orders for TRF
To reflect a very poor FY 13 its share Price crashed to a low of Rs 86 on July 31,2013 before recovering….In April 2011 it had hit a High of Rs 653! and even in February 2012 was just under Rs 400 levels….it’s been a miserable time for TRF Shareholders for the last two years
Tata Steel owns the majority 32.58% of the Tata Group’s 34.3% stake in the Equity of Rs 11 crs (FV Rs 10)…Consolidated Net worth had dropped to @ Rs 100 crs as on March 31,2013 with Reserves at Rs 89 crs….With FY Losses of near Rs 50 crs for the Nine Months at December 31,2013 and expected losses in the last quarter too in FY 14 of Rs 25 crs ,the Networth will have dropped dramatically to just @ Rs 25 crs….giving a book value of under Rs 25 down from @ Rs 100
So then whatsup with TRF !?….Insider stuff….low delivery volumes indicate a lot of speculative intra day trading being created…for what !?
Is TRF going to merge into Tata Steel? Is Azim Premji Invest buying shares of TRF !?
Whatever !…just be cautious….Continuing Losses and dramatically dropping Networth give TRF a poor Valuation that just does not justify the share price rise…..low delivery volumes point to speculative activity rather than than any serious buying…and the names that crop up in bulk deals are even more reason to be cautious !
And all this in a Tata Group Company right under the nose of BSE and SEBI !