Veteran investor and Director of Atul Auto, Vijay Kedia's biggest stock bet has rallied over 180 percent in the last year. The Atul Auto stock rallied 12 percent to hit a 52-week high of Rs 514.40 apiece in Monday's trade. Kedia had first invested in the three-wheeler maker in 2005 for Rs 9 per share. Since then, the stock has appreciated by 5,600 percent.
Speaking to CNBC-TV18 on Monday, Kedia said that he has invested in Atul Auto because of the electric vehicle (EV) theme. "I have a relationship with Atul Auto for the last 18-20 years, and found the management to be very honest and ethical. We had some problem just before Covid-19 and post that, the problem aggravated. But things are settling down even in three-wheeler as a whole and of course electric is a future. Since I knew them, and was comfortable, I took a stake in Atul Auto because of EV."
"If you find a theme, then stay invested," Kedia said, advising investors to stay in a sunrise industry at any cost and stay out of a sunset industry at any cost.
"Since EV is the new sunrise industry, so I entered. So, patience is the only theme; long term and patience – that is the only theme in the stock market - knowledge, courage, and patience," he added.
Atul Auto stock performance
Atul Auto has delivered whopping returns to its long-term shareholders. In the last five trading sessions, the stock has gained 35 percent. On a year-to-date basis, Atul Auto shares have rallied over 75 percent.
The scrip has an average target price of Rs 372.50, according to Trendlyne, which suggests a 27.20 percent downside for the stock from the current market levels.
In terms of technicals, the 14-day relative strength index (RSI) of the counter stood at 79.7, indicating the stock is trading in the overbought zone. This implies that the stock may show a pullback, according to data from Trendlyne. MACD is at 9.9, which is above its centre and signal Line, this is a bullish indicator.
The counter has a one-year beta of 1.5, indicating very high volatility. Atul Auto shares are trading above 5-day, 10-day, 50-day, 100-day, 150-day, and 200-day moving averages.
The automaker has been one of the biggest multi-baggers for Kedia, who is a well-known value investor with more than 30 years of experience on Dalal Street.
At last count, Kedia owned 3,569,024 shares or 13.70 percent stake in the company, according to the shareholding pattern of Atul Auto Ltd for the April to June 2023 quarter. In the January to March 2023 quarter, the ace investor held 16,83,502 shares, which was 7.05 percent of the total paid-up capital of the auto company.
Apart from Atul Auto, Kedia has raised his stake in some other companies during the April to June 2023 quarter. Patel Engineering and Precision Camshafts Ltd are amongst those stocks in which Kedia raised his stake during the first quarter of FY24.
First Published: Aug 28, 2023 1:43 PM IST
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