Ashnisha Industries, a small-cap stock, has been making significant strides in recent weeks on Dalal Street, climbing to levels not seen in months and handsomely rewarding shareholders who had been hoping for a strong rebound after a prolonged period of underperformance.
Extending its winning streak to the sixth straight session, the stock rallied another 16.16% in Monday’s trading session, November 10, to ₹4.60 apiece, resulting in a cumulative gain of 51%.
To be precise, the stock began its bull run at the start of October and managed to sustain higher levels even amid heightened volatility in the broader market, surging by a massive 63% from ₹2.82 apiece.
Though there is no fundamental factor that triggered the upmove, the stock, after a long period of underperformance, has finally managed to break that trend, ending October with a surge of 12%, its biggest monthly jump since January 2023.
So far in November, it has spiked another 46%, and if it maintains the same momentum through the end of the month, it will mark its biggest surge since December 2022. Notably, the sustained rally has also turned the stock’s year-to-date returns positive at 13.52%. The stock had closed 2024 with a sharp drop of 68% and 2023 with a 24% decline.
Despite the stock making a strong comeback, it still trades 80% below its all-time high of ₹24 apiece, recorded in June 2023. After hitting this peak, it entered a prolonged correction phase, remaining under pressure for the next 27 months before bouncing back last month.
Q2 results to dictate next leg of rally
Meanwhile, the continuation of the rally in the company’s shares will be dictated by its September quarter numbers, which are scheduled to be released on Friday, November 14.
In the first quarter, the company reported a net profit of ₹0.12 crore, a strong improvement compared to ₹0.05 crore reported in the same period last year, largely aided by a surge in other income.
The revenue from operations came in at ₹0.35 crore, compared to ₹0.42 crore in the September 2024 quarter. At the operating level, the company reported an EBITDA loss of ₹0.25 crore.
About company
Ashnisha Industries is primarily engaged in the business of manufacturing and trading steel and steel alloys. The company also operates in the trading and investment business. It generates 100% of its revenue from steel trading.
As of Q2FY26, general shareholders held 82.6% of the company’s equity, while the remaining 17.4% was owned by the promoters.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
