Extending its winning run to a fifth consecutive trading session, small-cap Cubex Tubings shares were locked in the 5% upper circuit in Tuesday’s trade on October 13, hitting a fresh record high of ₹191.30 apiece.
The five-day rally has resulted in a cumulative gain of 29%, turning the stock’s October returns positive. For context, when a stock repeatedly hits its upper circuit limit, it indicates strong buying interest, with buyers consistently placing orders on the exchanges amid limited selling activity.
However, no fresh fundamental triggers have emerged to explain the surge, with the company’s latest major update relating to its proposed fund-raising plans, announced last week.
In its regulatory filing dated October 9, the company said its board of directors would consider and decide on the mode of raising funds through the issuance of equity shares and/or other securities convertible into equity shares, in one or more tranches. The proposed fundraising could be carried out through permissible modes, including private placement, a preferential issue, or any other method or combination of methods, on terms and conditions deemed appropriate by the board.
The proposal would be subject to applicable laws and the receipt of necessary approvals, including approval from the company’s members and any other regulatory or statutory authorities, as required.
Cubex Tubings shares surged 121% in September
The stock displayed a similar performance in September, when it hit the upper circuit limit for four consecutive trading sessions.
On September 22 and 23, the stock hit the 20% upper circuit limit, after which the exchange appeared to have reduced the limit to 10%. However, the stock continued its winning run for another two sessions, taking its gains to 74%.
The rally was among the stock’s biggest sustained surges since November 2020. It ended September with a remarkable gain of 127%.
Looking at its broader performance, the stock delivered massive returns of 219% over the past three years and 606% over the past five years. These gains have largely benefited retail investors, who held a 55% stake in the company at the end of the June quarter, according to Trendlyne data.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
