The stock has not stopped rising for 5 days, today again millions of shares were bought, circuit will be activated as soon as the price rises by 20%.

News Topical, Digital Desk : The rally in the small company's stock has intensified again. A stock that was around ₹210 on April 22nd reached over ₹325 on April 27th. This means the stock has seen a meteoric rise in just a few trading days. At 12:50 pm, the stock was up nearly 17%. There was also talk in the market that if buying continued at this rate, the stock could hit a 20% upper circuit at any time.

The stock opened the morning trading at ₹296.46, compared to its previous close of ₹283.71. This meant a strong gap-up opening from the outset. Subsequent buying continued, pushing the stock above ₹325.

Volume boosted enthusiasm
Not only the price, but the trading volume has also increased rapidly in IRM Energy. Normally the volume of about 64 lakh shares is seen in the stock. But on the morning of 27th April itself, about 5 crore shares were traded. When both the price and volume increase simultaneously in a stock, the market considers it a strong signal. This means that the interest of investors in the stock is increasing rapidly. 

More impact in small cap stock The current market cap of IRM Energy is about Rs 1300 crore. Due to this it is considered a stock of small cap category. When there is a large amount of buying in small stocks, then the rise can be seen to be even faster. However, there is more volatility in such stocks.

What Past Records Say
If we look at the stock's history, its all-time high was ₹641, while its all-time low was ₹165. This means that even at current levels, the stock is trading well below its highest level.

Over the past year, the stock has fallen by approximately 20%. However, the recent rally has begun to change the picture. In the past month alone, it has gained approximately 21%. Now, a two-day rally has brought the market's attention back to this stock.

What the Company Does:
IRM Energy Limited is a city gas distribution company. The company supplies CNG and PNG. It is a subsidiary of the Cadila Pharmaceuticals Group and is headquartered in Ahmedabad.

The company provides CNG for cars, buses, and autos, and PNG for homes, factories, and commercial customers. The company operates in Gujarat, Punjab, Diu, and some areas of Tamil Nadu.

As of FY24, the company had 66,228 domestic PNG customers, 195 industrial units, 340 commercial customers, and 82 CNG stations.

This surge in IRM Energy indicates renewed market interest in small-cap gas sector stocks. However, the sharpest rise in such stocks can be as sharp as the sharpest fall. Therefore, investors should proceed with caution.

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