Multibagger: Atul Auto stock spikes 10% to 7-week high as sales rise 136% in April

Shares of Atul Auto, a prominent player in the Indian three-wheeler market, surged by 10% to reach ₹581.90 apiece in today's early trade following the company's strong sales performance in April. 

In an exchange filing on Wednesday, the company said that it had sold 1692 vehicles during the month, marking a remarkable 136.64% increase compared to the 715 units sold in the same period last year.

In FY24, the company witnessed a 1.92% increase in vehicle sales, with 26,039 vehicles sold compared to 25,549 in FY23.

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This positive development prompted a gap-up opening for the company's shares in today's trading session, starting at ₹549.85, compared to the previous day's closing price of ₹527. 

The stock further strengthened during the first hour of trade, reaching ₹581.90 per share, its highest level in seven weeks.

Renowned investor Vijay Kedia, via his brokerage firm Kedia Securities Private, held a 2.71% stake in the company as of the end of the March quarter. Additionally, Vijay Kedia holds Atul Auto in his portfolio. According to Trendlyne shareholding data, the well-known investor held an 18.70% stake.

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Retail investors closely monitor Kedia's investment decisions, often viewing them as indicators of potential opportunities in the market. According to Trendlyne, Vijay Kishanlal Kedia had investments in 17 stocks, totaling a net worth exceeding ₹1,682.5 crore.

Vijay Kedia's significant investments include ₹355.6 crore in Tejas Networks, making it one of his top holdings in terms of value. Following closely behind is Atul Auto, with a value of ₹332.3 crore, as per the Trendlyne data. 

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

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

Over the past year, the company's shares have surged by an impressive 65%, rising from Rs. 344 to Rs. 568. Furthermore, from its low point of Rs. 132.50 in April 2020, the stock has seen a remarkable surge of 330% to its current value.

The company is scheduled to announce its financial results for the quarter and financial year ending March 31, 2024, on May 17.

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In the December quarter, the company reported a consolidated net profit of ₹4.47 crore, up from ₹3.56 crore in the same period the previous year. Additionally, revenue from operations for the quarter stood at ₹154.33 crore, reflecting a 16% year-on-year improvement.

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