Synopsis:
Vijay Kedia’s largest investment, Atul Auto Limited’s share, jumped more than 18 percent following the government’s decision to reduce GST on three-wheelers from 28 percent to 18 percent.
The shares of a small-cap company that manufactures and sells auto rickshaws in the domestic and overseas markets hit 20 percent upper circuit after the GST cut on three-wheelers from 28 percent to 18 percent.
With a market capitalization of Rs.1,424.33 crore, the shares of Atul Auto Limited are trading at Rs.513.25, up by 18 percent from the previous day’s closing price of Rs.434.20.
What’s the news?
As per the latest GST reforms, the government has reduced the goods and services tax on three-wheelers from 28 percent to 18 percent, for the benefit of middle-class people. The tax reduction also applies to two-wheelers with engine capacity up to 350cc and four-wheelers with engine capacity up to 1,200cc.
As of June 2025, Ace investor Vijay Kedia has a portfolio worth ~Rs 1,200 crore. Out of which he holds a 20.9 percent stake consisting of 58 lakh equity shares of Atul Auto Ltd. The stock has been dropping more than 13 percent year-to-date, and the current value of his holding is around Rs 296 crore.
Also Read: ITC, VBL & 4 other stocks in focus after Finance Ministry raises GST from 28% to 40%
Operational Front
Atul Auto Ltd is a well-known and leading manufacturer of three-wheeler commercial vehicles based in Gujarat. It produces and sells auto rickshaws both in the domestic market and internationally.
In the first quarter of FY26, the company reported revenue from operations of Rs.152.7 crore, up from Rs.135.2 crore in the same quarter of FY25. Net profit also rose sharply to Rs.2.06 crore from Rs.0.76 crore a year earlier.
The firm’s return on equity stands at 5.03 percent, while return on capital employed stands at 6.52 percent. With a P/E ratio of 61.26, which is higher than the industry average of 40.15, the stock appears to be valued higher as compared to its peers.
Written By Jhanavi Sivakumar
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