Smallcap auto stock rises over 4% after Vijay Kedia picks 7% stake

Shares of smallcap auto firm Atul Auto rose 4.2% to Rs 334.7 in Monday's trade on BSE after ace investor Vijay Kedia picked another 7.05% stake in the company by converting warrants into equity shares.

According to disclosures made to stock exchanges, Kedia acquired 16,83,502 shares of the company on March 15. Before the acquisition, he held a 1.5% stake and now his total shareholding in the auto company has gone up to 8.43%.

In October last year, Atul Auto had allotted 50,50,505 fully convertible warrants at a price of Rs 198 per share to the value investor. The warrants can be converted into equity shares within 18 months from the date of allotment.

At 10.26 am, the stock was trading 2% higher at Rs 327.5 over its previous day's closing price of Rs 321.1 apiece. In the last one year, it has rallied over 90%, while it has surged over 12% year-to-date.

The Rajkot-based Atul Auto had recently forayed into the electric vehicles (EV) space by launching cargo and passenger variants of electric three-wheelers at the Auto Expo.

As per Trendlyne data, the average target price estimate for Atul Auto is Rs 350, which shows an upside potential of 7% from the current market prices.

The consensus recommendation from two analysts for the stock is a Buy. One analyst has a strong buy rating, while one has a hold rating.

Technically, Cochin Shipyard is trading below 4 out of 8 SMAs. The stock traded under its 10-day, 20-day, 30-day and 50-day moving averages but above the 5-day, 100-day, 150-day and 200-day moving averages.

Kedia, known for spotting multibaggers at an early stage, publicly holds 15 stocks with a net worth estimated at over Rs 650 crore. Top bets include Tejas Networks, Vaibhav Global, Elecon Engineering and Mahindra Holidays.

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