Atul Auto Shares Surge 13% Following Robust December Quarter Performance
Atul Auto, a prominent manufacturer in India's three-wheeler sector, witnessed its stock price climb by 13% to reach a three-month peak of ₹503 per share. This significant uptick came as investors responded positively to the company's financial results for the December quarter, which were disclosed on Saturday.
Impressive Financial Metrics Drive Investor Confidence
The company announced a consolidated net profit of ₹14.6 crore for the third quarter of fiscal year 2026. This figure represents a remarkable 105% increase compared to the ₹7.12 crore reported in the same period last year. Additionally, it marks a substantial 76.5% rise from the ₹8.27 crore profit recorded in the preceding September quarter.
This robust growth was primarily fueled by enhanced operational efficiency. Earnings before interest, taxes, depreciation, and amortization (EBITDA) soared by 64.7% to ₹28 crore. Consequently, EBITDA margins expanded by 300 basis points year-over-year, reaching 12%.
Consolidated revenue from operations also showed strong improvement, coming in at ₹231 crore versus ₹195 crore previously. This translates to an 18.5% growth. The automobile business, which constitutes over 95% of total revenue, contributed ₹220.5 crore. Meanwhile, the non-banking financial segment added ₹10.5 crore during the December quarter, according to the official earnings report.
Stock Performance and Historical Context
Atul Auto's shares have regained momentum in February, surging 23.5% so far this month after experiencing a downturn for three consecutive months. Historically, the stock enjoyed a sustained bull run from June 2022 to July 2024, delivering an impressive 194% return to shareholders. During this period, the shares also achieved a new all-time high of ₹844 each.
However, broader market weakness and profit-taking activities have since pulled the stock down. Currently, it trades approximately 40% below its record peak. In terms of annual performance, the stock posted a negative return of 24% in the previous calendar year.
Vijay Kedia's Substantial Investment Holdings
Renowned investor Vijay Kedia maintains a significant position in Atul Auto. Through his brokerage firm, Kedia Securities Private Limited, he held a 2.71% stake in the company at the end of the December quarter. Furthermore, Kedia personally holds an 18.20% stake in Atul Auto within his individual portfolio, as per data from Trendlyne.
Retail investors often monitor Kedia's investment moves closely, viewing them as potential indicators of market opportunities. Trendlyne data reveals that Kedia has investments in 17 different stocks, with a total portfolio net worth of ₹1,181.9 crore.
Atul Auto stands as Kedia's top holding in terms of value, worth over ₹285 crore. This is followed by Neuland Laboratories (₹176 crore), Elecon Engineering (₹106.8 crore), and Sudarshan Chemical (₹95 crore) in his investment portfolio.
Disclaimer: Investors are advised to consult with certified financial experts before making any investment decisions.
