Mr. Vijay Kedia increased his stake by 6 percent in this multibagger small-cap Automobile company during the quarter ended September 2023.
With a market capitalization of Rs 1,695.46 crores, the stocks of Atul Auto Limited closed in the red on Monday at Rs 610.95, dipping approximately 0.80 percent as compared to the previous closing levels of Rs 616 apiece.
During the quarter between June and September 2023, Mr. Vijay Kedia, one of the well-known ace investors based in India, increased his stake, in his as well as his firm’s name, viz, ‘Kedia Securities Private Limited’, in the Auto company.
He took an entry into the company’s stock way back in December 2015. During Q1FY24, the ace investor held a 14.93 percent stake, which, by Q2FY24, jumped by nearly 6 percent to 20.91 percent, equating to around 58 lakh equity shares on an aggregate basis.
During the past few financial years, the company has increased its operating revenues from Rs 315.42 crores during FY21-22 to Rs 513.12 crores during FY22-23. Moreover, the after-tax profit figures, during the same period, transitioned from a loss of Rs 25.48 crores to a profit of Rs 3.13 crores.
The company reduced its debt-to-equity ratio, regarded as one of the most important leverage metrics, from 0.68 times during FY21-22 to 0.49 times during FY22-23.
Year-to-date, the company’s stock has delivered multibagger returns of approximately 117 percent, i.e., if someone had invested Rs 1 lakh into the company’s stock during the start of this calendar year, it would have converted to Rs 2.17 lakhs.
According to the shareholding pattern data available for the quarter ended September 2023, the company’s Promoters hold a 42.73 percent stake followed by the Public (retail) investors holding a 56.41 percent stake in the company.
Atul Auto Limited is an Automobile manufacturing company based in India that manufactures and sell three-wheeled Commercial Automobiles in the domestic as well as overseas markets.
The company offers a wide range of products, some of which include Atul Gem, Atul Shakti, Atul Elite, etc. The company earns the majority of its revenue from domestic operations.
Written by Amit Madnani
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