Sometimes, certain stocks in the stock market gain such momentum that they catch everyone’s attention. This happened today with Tanfac Industries, a key part of ace investor Ashish Kacholia’s portfolio. This stock saw a massive rally today, jumping 7.24% to ₹4184.10.
The real reason for the rally: A large contract worth ₹336 crore
The main reason for the rise in Tanfac Industries’ shares today is a massive order announced by the company. The company announced that it has signed a major contract with Vadodara-based Krishna Organics for the supply of Solar Grade Diluted Hydrofluoric Acid.
The deal is worth approximately ₹336 crore and will last for 3.5 years, until 2028–29. This contract will not only strengthen the company’s financial stability but also play a significant role in increasing its revenue in the coming years. Company Director Afzal Malkani said that this achievement reflects the company’s credibility and strong position in the chemical sector.
Company Background: Strong Partnerships and Trusted History
Tanfac Industries is no ordinary company. It is a joint sector firm jointly promoted by Anupam Rasayan India Limited and TIDCO (Tamil Nadu Industrial Development Corporation). Its steady growth, reliable presence in the chemical industry, and consistently increasing orders have made it a strong player in the small-cap segment.
This is why ace investor Ashish Kacholia is also associated with this stock, holding a 1.65% stake in the company as of the September quarter.
Technical Position: SMA, RSI, and MFI all indicate strength
Technical charts indicate that Tanfac Industries is still in a healthy uptrend. The stock’s current price is well above the 50-day SMA of ₹4172.3 and the 200-day SMA of ₹3767.8. This indicates strong buying interest in the stock. The RSI is at 43.6, and the MFI is at 30.1, both in the mid-range, meaning the stock is neither overbought nor oversold. Volatility is also reported to be ‘very low,’ indicating that the stock remains stable and is unlikely to experience sudden, significant fluctuations.
All these signals create a positive environment for investors.
Investor Confidence: A Multibagger History That Won Hearts Tanfac Industries’ true strength lies in its long history. A 2200% return in five years is no small feat. By maintaining a steady rally over the past few days, the stock has once again signalled strong investor confidence. Today’s rally isn’t due to a single order; it’s due to the company’s fundamentals, strong management, and long-term clarity.
Frequently Asked Questions
Q1. Why did the stock suddenly surge today?
The company has signed a major supply contract worth ₹336 crore.
Q2. Is Ashish Kacholia still invested?
Yes, he holds a 1.65% stake.
Q3. Is this stock good for the long term?
The history is strong, but research is essential before any investment.
Q4. Is the stock overpriced right now?
Technical signals are showing strength, but investors should make decisions based on their risk profile.
Disclaimer: This article is for informational purposes only. It does not constitute investment advice. Investing in the stock market is subject to risks. Please consult your financial advisor before investing.
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