Vijay Kedia Boosts Stake in Atul Auto Despite 90% Rally; Shares Soar 9%

Vijay Kedia, a renowned investor, has recently increased his stake in Atul Auto during the April to June 2023 quarter. This news has caught the attention of retail investors who closely analyze the portfolios of ace investors to gain insights into the direction of smart money. In this quarter, Vijay Kedia raised his shareholding in Atul Auto from 7.05% to 13.70%, according to the shareholding data of the company. 

Following this news, Atul Auto experienced a surge in buying interest during morning trading. The company’s share price opened with an upside gap and reached an intraday high of ₹374.95 on the NSE, marking a significant 9% increase on Monday. 

In the April to June 2023 quarter, Vijay Kedia held 35,69,024 shares of Atul Auto, equivalent to 13.70% of the total paid-up capital of the company. In the previous quarter (January to March 2023), he held 16,83,502 shares, which represented 7.05% of the total paid-up capital of the company. 

It is unclear whether Vijay Kedia acquired all these additional shares in a single transaction or if they were accumulated gradually. According to exchange rules, a listed company is required to disclose the names of individual shareholders who own 1% or more stake in the company. However, they are not obliged to share details of buying and selling activities. 

Atul Auto has delivered significant returns to its long-term shareholders. Year-to-date, the company’s share price has risen from around ₹291.50 to ₹335 per share, reflecting a 15% increase during this period. Over the past year, Atul Auto’s share price has nearly doubled, surging from approximately ₹174.50 to ₹335 per share, resulting in over 90% returns for its shareholders. 

Apart from Atul Auto, Vijay Kedia has also increased his stake in other companies during the April to June 2023 quarter. Some of the stocks in which he raised his stake include Patel Engineering and Precision Camshafts Ltd, among others.

Summary

Renowned investor Vijay Kedia increased his stake in Atul Auto during Q1 2023, causing a surge in buying interest. Atul Auto’s share price rose by 9% on the NSE, reflecting the positive market response. Kedia now holds 13.70% of the company’s total paid-up capital. Atul Auto has delivered substantial returns, with a 15% increase in share price year-to-date and almost doubling in value over the past year. Kedia has also increased his stake in other companies, including Patel Engineering and Precision Camshafts Ltd, during the same quarter.