Atul Auto: This Vijay Kedia-owned stock zoomed over 16% to hit 8-month high in trade today – here’s why

Shares of Atul Auto, a prominent player in the Indian three-wheeler market, surged by 16.5% to hit an 8-month high of ₹635 apiece in today's intraday trade on the back of a strong spike in volumes. As of 2:30 p.m., a total of 2.9 million shares have changed hands on both BSE and NSE.

After reaching a 9-year high in November last year, the stock faced selling pressure, dropping 15% by March. However, it rebounded in June, gaining 22.38% so far. Today's rally has pushed the stock to a 269% increase over the last two years.

On June 13, the company informed investors through an exchange filing that it had incorporated a new subsidiary, Atulease Private Limited. This subsidiary will focus on the business of purchasing, acquiring, maintaining, operating, and managing various types of vehicles and either using them on the road or offering them for hire, lease, rental, or similar arrangements.

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In terms of sales performance, the company sold 2,331 vehicles in May, marking a remarkable 111.72% increase compared to the 1,101 units sold in the same period last year. For the first two months of the ongoing first quarter of FY25, it sold 4,023 units, representing a 121.53% improvement compared to 1,816 units sold in the same period last year.

Renowned investor Vijay Kedia, through his brokerage firm Kedia Securities Private, held a 2.71% stake in the company as of the end of the March quarter. Additionally, Kedia holds Atul Auto in his personal portfolio. According to Trendlyne shareholding data, Kedia held an 18.20% stake in Atul Auto.

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Retail investors closely monitor Kedia's investment decisions, often viewing them as indicators of potential opportunities in the market. Trendlyne data showed that Vijay Kedia had investments in 12 stocks, with a total net worth exceeding ₹1,042 crore.

Atul Auto was Kedia's top holding in terms of value, worth over ₹311.6 crore, followed by Elecon Engineering Company, Vaibhav Global, and Mahindra Holidays & Resorts India, valued at ₹201 crore, ₹106.8 crore, and ₹98 crore, respectively, as per the Trendlyne.

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Atul Auto, headquartered in Gujarat, is a leading three-wheeler manufacturer with a widespread presence across various segments and fuel variants. Operating in 21 states, the company has established 200 primary and 130 secondary networks.

Notably, it stands out as the sole player offering a comprehensive range of three-wheeler products spanning diesel, petrol, CNG, LPG, and electric options.

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For the March-ending quarter, the company reported a consolidated net profit of ₹4.88 crore, up from ₹3.34 crore in the same period the previous year. Additionally, revenue from operations for the quarter stood at ₹160.14 crore, reflecting a 6.6% year-on-year improvement.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.