Atul Auto's share price jumped by 5% during intraday trading on Monday, reaching an upper circuit limit of ₹596.30, following the company's impressive November sales report. The stock opened at ₹574.70 on the BSE, slightly higher than the previous close of ₹567.95, and quickly gained momentum, touching its upper price band.
Strong sales drive Atul Auto's stock performance
Strong sales figures primarily drove the boost in Atul Auto's share price for November 2024. The company reported domestic sales of 2,535 units, reflecting a 19.41% increase from 2,123 units sold in November 2023. This growth continued on a year-to-date (YTD) basis, with the total domestic sales volume for FY25 reaching 20,124 units, a significant 39.9% increase compared to 14,385 units sold during the same period last year.
Additionally, Atul Auto's export sales also showed a robust performance. The company sold a total of 2,828 units in November 2024, up 24.58% from 2,270 units in the same month of 2023. On a YTD basis, the total sales volume, including exports, grew by 30.94%, reaching 22,064 units compared to 15,795 units during the same period last year.
Vijay Kedia's stake in Atul Auto
Atul Auto has garnered attention due to its strong financial performance and its connection to Vijay Kedia, a well-known investor. Kedia, who holds 18.2% of the company, owns 5,050,505 equity shares, as per the shareholding patterns disclosed at the end of September 2024. Additionally, Kedia's entity, Kedia Securities, owns 751,512 shares, representing an extra 2.71% stake in the company.
For those looking to invest in stocks, Atul Auto's strong sales growth and consistent performance in both domestic and export markets make it an attractive option for potential investors.
Market outlook
Atul Auto's performance in the stock market reflects investor confidence in its business model and growth prospects. The company's impressive sales growth, especially in the export market, suggests that it is well-positioned for further expansion. With a robust sales trajectory and support from prominent investors like Vijay Kedia, Atul Auto presents an interesting opportunity for those looking to invest in stocks within the auto sector.
As of now, the stock continues to trade at its upper circuit limit, signalling sustained investor interest.
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