Vijay Kedia is bullish on this multibagger auto stock! Bought an additional 19,11,481 shares & FIIs increase stake; know more here

The total value of the 58,02,017 shares as of Friday's closing price is Rs 370,92,29,468.

Indian stock markets closed lower on Friday, with the BSE Sensex Index falling 0.35 per cent and the NSE Nifty-50 Index down 0.42 per cent.

Despite the overall market decline on Friday, one multibagger auto stock made a new 52-week high. The stock gained 3.63 per cent to reach an intraday and 52-week high of Rs 683.30 per share, up from its previous close of Rs 659.35 per share. However, the stock closed the day at Rs 639.30 per share, down 3.04 per cent with a spurt in volume by more than 2.10 times on BSE.

Ace investor Vijay Kedia increased his stake in this company in the September quarter (Q2FY24). Vijay Kedia bought an additional 14,81,481 shares or 4.50 per cent stake, and Kedia Securities Pvt Ltd, a firm owned by him, bought an additional 4,30,000 shares or 1.48 per cent stake in the company. As of today, Vijay Kedia and his firm own 58,02,017 shares or 20.9 per cent stake in the company. The total value of the 58,02,017 shares as of Friday's closing price is Rs 370,92,29,468, or Rs 370.92 crore.

In the September quarter, Societe Generale, a foreign institutional investor (FII), bought 1,41,190 shares of the company. This increased the total FIIs holding in the company from 0.43 per cent to 0.46 per cent.

Vijay Kedia's aggressive buying of shares in this multibagger auto stock is a sign of his bullish outlook on the company?

The multibagger auto stock is none other than in is ATUL AUTO LIMITED.

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 1,665.44 crore.

According to the Quarterly Results (Q1FY24), the company reported a net sales of Rs 59.65 crore, an operating loss of Rs 4.25 crore and a net loss of Rs 9.41 crore. In FY23, net sales increased by 62.85 per cent to Rs 513 crore compared to net sales of Rs 315 in FY22. The company reported a net profit of Rs 3 crore in FY23 compared to a net loss of Rs 25 crore in FY22.

The stock has delivered multibagger returns of over 144 per cent in just 1 year. Since its listing which is December 30, 2002, the stock has gained a whopping 56,475 per cent.

Industry outlook: The Indian tyre industry is expected to grow more than twofold from USD 9 billion in 2022 to USD 22 billion in 2032, according to a report by the Automotive Tyre Manufacturers' Association (ATMA). This growth will be driven by rising demand for vehicles, government investments in infrastructure, and a large and growing vehicle population in the replacement market.

India is one of the world's leading tyre manufacturers, producing a wide range of tyres, including conventional radial and bias tyres, as well as advanced smart, noise-reduction, puncture-proof, and electric vehicle tyres. The industry is also expanding its presence in the premium and luxury tyre segments, which are currently dominated by imports.

Disclaimer: The article is for informational purposes only and not investment advice.