Shares of a multibagger auto stock in Vijay Kedia’s portfolio gained nearly 5 percent on Thursday’s early trades to reach a 52-week high of ₹ 459.00 apiece, after foreign institutional investors bought a stake in the company. At 01:37 PM, its shares were trading at ₹ 444.70 apiece.
Atul Auto manufactures three-wheelers and sells the spare parts of three-wheelers. Its brands include RIK+CNG, RIK CNG, RIK Petrol and RIK LPG among others.
The company’s share price has increased by 149 percent in the past year to give multibagger returns. If an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.49 lakhs today!
Reports suggest that Europe-based financial services group Societe Generale has bought 1.41 lakh equity shares of a 0.54 percent stake in the automaker via open market transactions, at an average price of ₹ 409.54 per share. This takes the transaction value to ₹ 5.77 crores.
As per the latest shareholding pattern of the company, seasoned investor Vijay Kedia holds 35,69,024 shares or a 13.70 percent stake in the company. In addition to that, his company Kedia Securities Pvt Ltd. holds 3,21,512 shares or a 1.23 percent stake in the company.
With a market capitalization of ₹ 1,144 crores, Atul Auto is a small-cap company. It has a low return on equity of 1.28 percent and an ideal debt-to-equity ratio of 0.49. Its shares were trading at a price-to-earnings ratio (P/E) of 205.48, which is higher than the industry P/E of 16.19, indicating that the stock might be overvalued as compared to its peers.
As per the company’s shareholding pattern, retail investors hold a 52.52 percent stake in the company, its promoters hold 46.46 percent, mutual funds hold 0.59 percent and foreign institutions hold a 0.43 percent stake.
Written by Simran Bafna
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
