Vijay Kedia-backed multibagger auto stock hit upper circuit as the company announced months business update & invests Rs 82.72 crore in Khushbu Auto Finance Ltd
The stock is up by 42.3 per cent from its 52-week low of Rs 471 per share and gave multibagger returns of 250 per cent in just 2 years.
On Tuesday, one multibagger auto stock hit a 5 per cent upper circuit to Rs 670.20 per share from its previous close of Rs 638.30 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 2.46 times on BSE.
The buzzing stock name is Atul Auto Ltd.
The sudden rise in the stock price was due to the company announcing monthly business updates. Here are the details:
Additionally, 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. The equity shares were allotted on September 28, 2024, increasing Atul Auto Limited's shareholding in KAFL to 100 per cent. KAFL, established in 1994, has demonstrated steady growth in its turnover over the past three years.
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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 1,859.89 crore.
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 42.3 per cent from its 52-week low of Rs 471 per share and gave multibagger returns of 250 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.