New Delhi, Sept. 16 -- Small-cap stock under Rs.50, Pavna Industries share price was locked in a 20 percent upper circuit at Rs.41.10 on Tuesday after witnessing a sharp surge in volumes, which spiked nearly 50 times. The rally came even as concerns linger around its stretched valuations and muted trading participation. The company's price-to-earnings (PE) ratio has stayed above 50 for the past four trailing quarters, signaling steep valuations.

At the same time, investor activity in the counter has been limited. The average daily number of unique clients or PANs trading the scrip over the last 30 days stood below 100. The stock has also seen sharp volatility, with its high-low price variation exceeding 150 percent in the past 12 months....