The shares of this smallcap company locked a 5 percent upper circuit after reporting an increase in domestic sales by around 18 percent. In six months the stock has delivered more than a 30 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 1,860 crores, the shares of Atul Auto Ltd started Tuesday’s trading session on a higher note at Rs. 644.90 compared to its previous close of Rs. 638. During the trading session, the shares locked a 5 percent upper-circuit at Rs. 669.90 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company announced its three-wheeler vehicle sales performance figures for the month of September 2024.
The total domestic sales of Atul Auto for September 2024 amounted to 3,062 units, an 18 percent increase from 2,600 units in September 2023. On a YTD basis, the total sales reached 14,296 units, reflecting a growth of 49.52 percent compared to 9,561 units in the same period last year.
Furthermore, the total sales combining domestic and export figures reached 3,361 units in September 2024, up 26.26 percent from 2,662 units in September 2023. The Year-to-date total sales climbed to 15,418 units, reflecting a growth of 47.33 percent compared to 10,465 units during the same period last year.
A remarkable growth of 89.23 percent is noted in EV-L5 sales, with 123 units sold in September 2024, compared to 65 units in September 2023. The YTD sales surged to 499 units, a substantial increase of 258.99 percent from 139 units last year.
Overall, the sales data indicates a robust performance across both domestic and export markets, with significant growth in various segments, particularly in EV-L5 sales.
Financials:
Looking at the company’s financial performance, the revenue decreased by around a6 percent from Rs. 160.14 crores during the March quarter to Rs. 135.08 crores in the June quarter. On the other hand, the net profits declined by 84 percent from Rs. 4.88 crores to Rs. 76 lakhs during the same timeframe.
Prominent Investor:
According to the BSE data, Ace Investor Mr Vijay Kedia entered the stock in December 2015 and currently holds over 50 lakhs equity shares (combined of Kedia securities) equivalent to a 20.91 percent stake in this company. The current holding value of his investment amounts to Rs. 388.7 crores.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 2.13 percent and a return on capital employed (RoCE) of 4.80 percent for the period spanning FY23-24. Moreover, during the same timeframe, the net profit margin stood at 1.34 percent.
Company Profile:
Atul Auto Limited specializes in the manufacturing of three-wheelers, including auto-rickshaws, tuk-tuks, and e-rickshaws. The company offers a wide variety of vehicles powered by diesel, petrol, CNG, LPG, and electricity, meeting the transportation needs of both passengers and cargo.
Written By Vaibhav Patil
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