Synopsis:
The shares of CIAN Agro Industries & Infrastructure Ltd hit two lower circuits after 16 consecutive upper circuits and delivering almost 775% in the last 2 months.
During Friday’s trading session the shares of the company operating in the FMCG Sector, known to have operations in edible oil and ethanol production, hit a 5% lower circuit for the second day and are down about 15% from its high.
With a market cap of Rs 8,739 Crore , the shares of CIAN Agro Industries & Infrastructure Ltd hit its all time high of Rs 3,633 but could not sustain and gave a reversal by hitting two lower circuits. This came at a time when the shares were going through continuous upper circuits.
One of CIAN Agro Industries & Infrastructure Ltd’s promoters is Mr Nikhil Gadkari, who is the son of Mr.Nitin Gadkari, India’s Minister of Road Transport and Highways of India.
The company had a huge surge in its revenue due to ever-increasing ethanol blending, strategic expansion into segments like sugar and jaggery from which ethanol is produced and the contribution of the company’s subsidiaries, which are already in the sugar industry.
India has achieved a significant milestone in its Ethanol Blending Programme by reaching 20% ethanol blending in petrol (E20) in 2025, five years ahead of the original target set for 2030.
This earlier achievement of targets made companies into ethanol business surge and the biggest company to benefit from this was CIAN Agro Industries & Infrastructure Ltd As the Indian government is still planning to increase the blending into E27 , the market is assuming that the contracts could be given to CIAN agro.
Reason for the Bearish reversal
There is no definite reason for this trend reversal, inclining towards heavy selling pressure and profit booking. Even though there was an increase in the share price, the market volatility and weakness in the sector of edible oil sector might have been the reason for the bearish reversal. And the other possible reason could be profit booking following the huge rally.
BSE has placed the shares under long-term Additional Surveillance Measure(ASM:Stage 4) framework to caution investors amid extreme price volatility. Its 14-day Relative Strength Index is around 80, which puts it in the overbought zone. The volume of shares traded yesterday was around 1,50,000 . This is higher than its 2-week average. The shares rallied for over 47 sessions before correcting; still the shares have given a return of 125% over the past one month and 1,360% return over a year.
Financials and others
The sales stood at Rs 511 crore in Q1 FY26, which is 2,824% growth compared to Q1 FY25 sales of Rs 17 Crore . The net profit grew from Rs 0 to Rs 52 crore in Q1 FY26.
The share is trading at 93 PE, which is twice the median PE of 47. CIAN Group is one of the largest business conglomerates originating from the region of Vidarbha and is expanding across many states in the country. The CIAN Group is an integrated group with expertise in diverse sectors- Spices, Edible Oil, Personal Care, Home care, Sanitation and Agro, now venturing into the Ethanol Business.
The shareholding for CIAN Agro Industries & Infrastructure Ltd stands at 67.65% with the promoters, followed by 0.08% with FII’s , 0.12% with DII’s and 32.15% held by the public, which is why we could see a high amount of volatility.
Written by Leon Mendonca
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