Tecil rises on speculation

On this maniacal Monday, with the markets falling almost 3k points, a very low traded and less known stock, Tecil Chemicals & Hydro Power (Tecil) is ruling the list of buyers. From its close of Rs.25.15, the stock hit the 20% UC of the day at Rs.30.18. It is a very thinly traded stock, of less than 650 trades on a 2-week average and market cap is less than Rs.60 crore. Seems smaller than a small cap!

There is no new material development known in the stock, except for bargain hunters, mainly traders taking advantage of the technical surge on the counter. It seems to be mainly short-term traders looking for volatility and potential gains.

The company is into manufacturing of chemicals and power generation, but currently, it has reported no trading activity. This suggests that its business operations might either be suspended or might be undergoing some form of restructuring. The ongoing financial loss and lack of earnings thus indicates lack of commercial activity.

The promoter holding is 47.71% and this shows it is promoter driven and family led, which is typical of such small cap companies.

There may be speculative interest due to its low market cap and volatile stock price but the bottomline – there is nothing concrete as of now which suggests a turnaround is in motion just yet.