Turnaround story: Vijay Kedia-backed auto stock to keep under radar as company reported a net profit of Rs 5.33 crore in H1FY25
The stock is up by 21 per cent from its 52-week low of Rs 471 per share and gave multibagger returns of 130 per cent in just 2 years.
On Monday, one multibagger auto stock plunged 4.21 per cent to Rs 572.50 per share from its previous close of Rs 597.65 per share. The stock’s 52-week high is Rs 840 and its 52-week low is Rs 471. The shares of the company saw a spurt in volume by more than 3 times on BSE.
The buzzing stock name is Atul Auto Ltd.
Atul Auto Limited is an Indian three-wheeler manufacturing company based in Rajkot. Atul Auto manufactures and sells auto rickshaws in domestic and overseas markets. The company has a market cap of Rs 1,588 crore.
According to Quarterly Results, the net sales increased by 19 per cent to Rs 181.65 crore and net profit decreased by 36 per cent to Rs 4.57 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, the net sales increased by 49 per cent to Rs 316.73 crore in H1FY25 compared to net sales of Rs 212.82 crore in H1FY24. The company reported net profit of Rs 5.33 crore in H1FY25 compared to net loss of Rs 2.28 crore in H1FY24, an increase of 334 per cent. In FY24, the company reported net sales of Rs 527.29 crore and net profit of Rs 7.07 crore.
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Earlier, Atul Auto Limited has significantly boosted its investment in its wholly-owned subsidiary, Khushbu Auto Finance Limited (KAFL), by subscribing to equity shares worth Rs 4.91 crore. This brings the total investment in KAFL to Rs 82.72 crore. KAFL, a non-banking finance company specializing in financing three-wheelers and two-wheelers, has a paid-up share capital of Rs 57.67 crore, a turnover of Rs 42.79 crore, a net worth of Rs 109.69 crore, and a profit after tax of Rs 237 lakh for FY 2023-24. The investment in KAFL is considered an arm's length transaction and aligns with Atul Auto Limited's business strategy, strengthening its presence in the financing sector.
An ace investor, Vijay Kedia along with his company (Kedia Securities Pvt Ltd) owns a 20.91 per cent stake in the company. The stock is up by 21 per cent from its 52-week low of Rs 471 per share and gave multibagger returns of 130 per cent in just 2 years. Investors should keep an eye on this auto stock.
Disclaimer: The article is for informational purposes only and not investment advice.