Is it a comeback for this legendary automobile company?
The company has signed MOU for manufacturing electric vehicles and planning to export the same in the future.
Shares of Hindustan Motors Ltd, were locked in the upper circuit, after soaring almost 10 per cent to Rs 20.20 on Thursday. The stock has shown good move in one month with gaining more than 25 per cent and 86 per cent in just 6 months. On intraday basis, it is witnessing fresh buying as volume spurt by almost 3 times in the morning session.
Investors are betting on the stock due to positive commentary from the management. The company has signed MOU for manufacturing electric vehicles and planning to export the same in the future. It is first looking to enter the 2-wheeler electric segment and then the EV car manufacturing segment.
Hindustan Motors Ltd, was established in 1948 and was the one of the first car manufacturer in India. It is known for its ambassador car which was among the top selling cars in India. It is also engaged in the manufacturing of the engines, spare parts and other products related to the auto sector. It was the country’s first integrated manufacturing unit and always believed in the use of technology for more efficiency.
Investors with high-risk appetite and who can bet on a probable turnaround can keep this stock on their watch list.