300 per cent returns: This multibagger auto stock creates waves in Dalal Street as Vijay Kedia increases stake; share jumps over 12 per cent!

The stock gave multibagger returns of 115 per cent in just 1 year whereas BSE Capital Goods Index is by 46.03 per cent.

On Monday, the benchmark indices ended the day in the green. BSE Sensex Index is up by 0.80 per cent at a level of 66,589.93. The Sensex Index reached a new 52-week high and an all-time high, reaching a level of 66,656.21. In the most recent trading session, the Sensex continued to hit consecutive 52-week highs.

One of the Top Gainers on BSE, shares of Atul Auto Ltd surged 12.46 per cent to an intraday high of Rs 375.05 per share from its previous closing of Rs 333.50. At the closing bell, shares of the company were trading at Rs 370.40 per share, up 11.06 per cent with a spurt in volume by more than 3.80 times on BSE.

The sudden rise in the stock price is attributed to renowned investor Vijay Kedia, who increased his stake in the company by 6.65 per cent in the June quarter. He now holds 35,69,024 shares, which accounts for 13.70 per cent of the company's total paid-up capital.

Atul Auto manufactures and sells auto rickshaws in domestic and overseas markets. The company has a market cap of Rs 885 crore with a 3-year stock price CAGR of 28 per cent. The net sales increased by 54.45 per cent to Rs 150.27 crore and net profit skyrocketed by 158.30 per cent to Rs 3.34 crore in Q4FY23 over Q4FY22. The net sales increased by 62.86 per cent to Rs 513 crore and net profit skyrocketed by 112 per cent to Rs 3 crore in FY23 over FY22.

The stock gave multibagger returns of 115 per cent in just 1 year whereas BSE Capital Goods Index is by 46.03 per cent. Over the last decade, the stock has delivered returns of over 300 per cent. Investors should keep an eye on this Small-Cap stock.

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