Vijay Kedia’s Investment Boosts Atul Auto Stock Amidst 923% Surge in EV Sales

Atul Auto’s stock surged due to a 923% increase in EV sales, especially in the L5 segment, despite a decline in L3 sales. The Union Budget 2025 is expected to boost sectors like automobiles, cement, and consumer goods, with key companies like Adani, Mahindra, and Tata set to benefit. Vijay Kedia, a major investor in Atul Auto, holds a significant stake in the company, adding to its growing momentum.

CONTENTS:

• Vijay Kedia’s Atul Auto Stock Surge: 923% Increase in EV Sales Drives Growth
• Vijay Kedia’s Stake in Atul Auto
• Adani, Jindal, Mahindra, Tata Stocks Set to Yield Profits Post Budget 2025 Announcements
• Conclusion

Vijay Kedia’s Investment Boosts Atul Auto Stock Amidst 923% Surge in EV Sales

Vijay Kedia’s Atul Auto Stock Surge: 923% Increase in EV Sales Drives Growth

Vijay Kedia’s Investment Boosts Atul Auto Stock Atul Auto, a prominent player in the three-wheeler industry in India, witnessed a notable rise in its stock price, jumping by 2.3% on Monday’s trading session to ₹518.85. Though the stock slightly retraced to ₹514, it was still 1.38% higher than its previous closing price of ₹507. However, it’s important to note that over the past year, the stock has delivered nearly a 6% negative return, underperforming the broader market represented by the Nifty Index.

The key factor behind the surge in Atul Auto’s stock price is the impressive growth in the company’s electric vehicle (EV) sales. According to its recently released sales data for January 2025, Atul Auto’s performance has been remarkable, especially in the EV segment. Despite a decline in the sales of electric three-wheelers in the L3 segment (down by 6.82%), the L5 segment — particularly in electric vehicles (EVs) — saw an extraordinary increase of 922.73%, from 22 units in January 2024 to 225 units in January 2025. This growth is primarily attributed to the strong performance of Atul Auto’s subsidiary, Atul Greentech Private Limited.

Along with the surge in EV sales, Atul Auto reported a solid 18.59% increase in its Q2 FY25 revenue, which stood at ₹181.65 crores compared to ₹153.17 crores in the same period last year. Despite this positive revenue growth, the company reported a decrease in net profit, which fell from ₹7.13 crores in Q2 FY24 to ₹4.57 crores in Q2 FY25.

Atul Auto holds a 4% share of the domestic three-wheeler market, with its total market share across both domestic and export markets estimated at around 3%, according to CRISIL Ratings. The company has been a consistent performer in the three-wheeler market and is poised for further growth, driven by its efforts in the EV sector.

Vijay Kedia’s Stake in Atul Auto

Vijay Kedia’s Investment Boosts Atul Auto Stock One of the key investors behind Atul Auto’s growth is the well-known stock market investor, Vijay Kedia. Kedia holds a direct stake of 18.20% in Atul Auto, alongside a 2.71% stake through Kedia Securities Private Limited. His investment in Atul Auto has garnered attention as the stock continues to rise, particularly following the surge in EV sales.

Adani, Jindal, Mahindra, Tata Stocks Set to Yield Profits Post Budget 2025 Announcements

Vijay Kedia’s Investment Boosts Atul Auto Stock The Union Budget for 2025, unveiled recently, has laid out several key announcements that are expected to trigger growth in multiple sectors, including automobiles, cement, and consumer goods. These sectors are home to some of India’s largest companies, including Adani, Jindal, Mahindra, and Tata, all of which are expected to benefit significantly from the Budget’s provisions. Although the broader market faced a downturn on Monday, with the Sensex declining over 300 points, certain companies from these sectors saw strong gains.

The Budget 2025 announcements are expected to drive growth in these sectors and benefit companies like Adani, Jindal, Mahindra, and Tata:

Auto Sector: Potential for Significant Growth

The automobile sector stands out as one of the key beneficiaries of the Budget 2025. The government has made a significant move by announcing tax-free income up to ₹12 lakh, a decision that could incentivize consumers to purchase new vehicles, particularly in the two-wheeler and entry-level car segments. The government has also introduced tax exemptions on 35 components required for manufacturing lithium-ion batteries, which is expected to boost the electric vehicle (EV) industry. This move will likely lead to a rise in demand for EVs, both in the personal and commercial vehicle markets.

Key players to watch in this sector include:

• Maruti Suzuki: As one of the leading automobile manufacturers in India, Maruti Suzuki is expected to benefit from the expected surge in vehicle sales.
• Hero MotoCorp: The company could also see increased demand, especially in the two-wheeler segment.
• Mahindra & Mahindra: Known for its electric and conventional vehicles, Mahindra & Mahindra is well-positioned to tap into the EV growth.
• Samvardhana Motherson International: This auto components giant stands to benefit from the growth of electric vehicle manufacturing.

Cement Sector: Boosted Demand from Housing and Infrastructure Initiatives

Vijay Kedia’s Investment Boosts Atul Auto Stock The cement sector is poised for growth, driven by increased government spending on infrastructure and housing projects. The Budget 2025 introduced tax-free schemes for the construction of two homes, which is expected to fuel demand for residential housing. Additionally, a significant portion of the Budget has been allocated for infrastructure development, which will further increase demand for cement, given the sector’s reliance on construction activities.

The Budget also includes an interest-free loan of ₹1.5 lakh crore to states for infrastructure development, which is likely to spur demand for cement in the coming years.

Key cement companies to monitor in light of the Budget announcements include:

• Adani Group’s ACC Ltd and Ambuja Cements: These companies, part of the Adani Group, are well-positioned to benefit from the anticipated increase in cement demand.
• UltraTech Cement: Another major player in the cement market that is set to benefit from the infrastructure and housing booms.
• JK Cement: With a strong presence in both domestic and international markets, JK Cement could see substantial growth in demand.

Consumer Goods Sector: Surge in Demand Expected

The consumer goods sector, particularly in areas like retail, quick-service restaurants (QSR), and apparel, is expected to see rapid growth. As consumers benefit from tax savings due to the Budget provisions, spending on staple goods, apparel, and dining out is likely to increase. This surge in demand will benefit companies involved in the retail and consumer goods segments, particularly those catering to everyday products.

Key companies in this sector include:

• Tata Group’s Trent: Trent, which operates brands like Westside and Zudio, could see increased consumer spending.
• HUL (Hindustan Unilever): A leading player in the FMCG space, HUL stands to benefit from the boost in consumer spending.
• Titan: The jewelry and lifestyle brand is expected to gain as consumer demand for luxury and lifestyle products rises.
• Page Industries: The company, known for its Jockey brand, is poised to benefit from the increase in demand for clothing and apparel.
• Metro Brands: A prominent player in the footwear retail space, Metro Brands could see higher sales in the wake of increased disposable income.

Finance Sector: MSME and Start-up Focus

The Budget also presents a significant opportunity for companies in the finance sector. The government’s decision to expand the MSME Credit Guarantee Scheme is expected to provide an additional ₹1.5 lakh crore in loans over the next five years. This move will benefit companies focusing on MSME financing, which could see increased loan disbursements as a result. Additionally, the Budget’s support for start-ups is likely to drive growth in the financial services sector.

Key companies in this space include:

• Shriram Finance: With a focus on MSME financing, Shriram Finance stands to benefit from the government’s enhanced credit guarantee scheme.
• PNB Housing: A prominent player in the housing finance sector, PNB Housing could see growth as demand for housing finance increases.
• PFC (Power Finance Corporation) and REC (Rural Electrification Corporation): These companies, focused on infrastructure financing, are well-positioned to benefit from increased government expenditure on infrastructure.

Metals Sector: Government Spending Fuels Growth

Vijay Kedia’s Investment Boosts Atul Auto Stock The metals sector is also set to benefit from the government’s increased capital expenditure on infrastructure. The Budget has allocated ₹11.2 lakh crore for infrastructure in FY26, an increase from ₹10.2 lakh crore in the previous year. With infrastructure, construction, and automobiles being major consumers of steel, the domestic steel demand is expected to rise, benefiting companies in the metals sector.

Key companies to monitor in this sector include:

• JSW Steel: A major player in the steel industry, JSW Steel is likely to see increased demand, particularly from infrastructure projects. JSW Steel is owned by Sajjan Jindal, a prominent industrialist in India.
• Coal India: The company, which is involved in coal mining, could benefit from increased demand for coal as the country ramps up its infrastructure projects.

Conclusion

Vijay Kedia’s Investment Boosts Atul Auto Stock The Budget 2025 has set the stage for strong growth across multiple sectors, including automobiles, cement, consumer goods, finance, and metals. Companies like Adani, Jindal, Mahindra, and Tata are well-positioned to capitalize on these developments, and their stocks are likely to see significant gains. However, investors should conduct their due diligence and consider consulting with financial advisors before making investment decisions, as stock market investments carry inherent risks.