Atul Auto: This Vijay Kedia-owned stock zooms over 41% in 2 months, soars 318% in 2 years

Atul Auto, a leading player in the Indian three-wheeler market, saw its shares surge by 16% in July, continuing its bull run for the second consecutive month. This rally has propelled the stock to gain 41% in 2 months and 318% over the past two years.

In July, the stock also reached a new milestone by crossing the ₹800 mark for the first time, recording a fresh all-time high of ₹844 per share.

Atul Auto has emerged as the only player in the three-wheeler market, offering a complete range of products across all fuel types, including diesel, petrol, CNG, LPG, and electric. It is one of the youngest and fastest-growing companies in the sector. Over the past five years, its production turnover has tripled. In FY 2022–23, the company achieved a turnover of Rs. 467.06 crore.

The company has been strategically investing in research and development activities, with a primary focus on electric vehicles that offer the same comfort as alternate-fuel three-wheelers. Additionally, the company is in the process of launching more models and variants of alternate fuel three-wheelers with a capacity of 0.50 tonnes, supported by strong R&D efforts.

Its subsidiary, Atul Greentech Private Limited (AGPL), entered the electric vehicle market in FY23 with two electric three-wheelers, Atul Mobili and Atul Energie. During the year, AGPL collaborated with Honda Power Pack Energy India Pvt. Ltd. and Valeo to develop prototype cargo and passenger three-wheelers featuring the reliable Honda Mobile Power Pack e: Swap and Valeo powertrain systems.

These prototypes were showcased at the Auto Expo 2023 in New Delhi. Atul Mobili is a passenger vehicle, while Atul Energie is a cargo variant. Both are known for their distinct looks, robust build quality, and powerful performance.

The vehicles equipped with swappable batteries will feature Valeo's integrated compact electric powertrain system. This swappable solution from AGPL will enable fleet and individual customers to lower the total cost of ownership and reduce upfront capital expenditure. according to the company's latest annual report.

In terms of recent sales performance, the company sold 2,628 vehicles in July, a remarkable 107.42% increase compared to the 1,101 units sold in the same period last year. Year-to-date, the company has sold 6,651 units, representing 116% growth compared to the 3,083 units sold during the same period last year.

Vijay Kedia's investment holding

Renowned investor Vijay Kedia, through his brokerage firm, Kedia Securities Private, held a 2.71% stake in the company at the end of the June quarter. Additionally, Kedia has Atul Auto in his personal portfolio, with an 18.20% stake, according to Trendlyne shareholding data.

Retail investors closely follow Kedia's investment decisions, often seeing them as indicators of potential market opportunities. Trendlyne data revealed that Kedia had investments in 12 stocks, with a total net worth exceeding ₹1,687 crore.

Atul Auto is Kedia's top holding in terms of value, worth over ₹414 crore. This is followed by Tejas Networks, Vaibhav Global, and Neuland Laboratories, valued at ₹394 crore, ₹106.8 crore, and ₹125 crore, respectively.

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