TRF jumps more than 10% and hits 52-week high; here’s why

TRF Limited traded with high volatility gaining more than 13% during intraday on Thursday. It is a potential breakout candidate for the coming days as it touched its 52-week high today. The volumes traded on expiry day were more than average and spurting more than 5 times than regular.

TRF Limited designs, manufactures, and installs complete material handling systems for a variety of industries, including steel, mining, power, and ports.

Latest Updates  

In Q3 2023, TRF reported a 26.74% decrease in net sales and a 65.63% drop in net profit compared to the same period in 2022, resulting in a decrease in EPS from Rs. 48.49 to Rs. 16.66.

TRF Singapore, a subsidiary of machinery provider TRF, is selling its stake in Dutch Lanka Trailer Manufacturers and Dutch Lanka Engineering to United Motors Lanka for 700 million Sri Lankan rupees. United Motors Lanka is the sole distributor of Mitsubishi vehicles in Sri Lanka. The transaction is set to be finalized in 60 days pending approvals, leading to a 9% increase in TRF’s shares on 17 October 2023.

The company has reduced their debt and showed 21.4% profit growth.

Stock Performance 

Over the past week, it recorded a notable gain of 21.21%, indicating short-term bullishness in the stock. In the one-month period, TRF has shown a 16.50% increase. For investors with a medium-term perspective, it surged by 45.21%. Year-to-date, TRF has outperformed, showing a remarkable gain of 61.73%. Long-term investors have seen substantial returns, with a three-year growth rate of 281.03%, underscoring the stock’s strong performance in the market.

The above chart of TRF Ltd shows that the stock is in an uptrend following an ascending range. The stock price is continuously taking support of 50-day EMA. As we see the stock is currently trading near a 52-week high, any attempt to break this range may lead TRF to give multibagger returns for the traders. The stock price may break above the 52-week high level or face the resistance at the same and retrace to the 50-day EMA and again will have a thrust reaction upside, although this all is anticipation.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.