Atul Auto zooms 32% in 6 sessions on entry into EV space; stock hits 3-year high

Shares of Atul Auto, a Gujarat-based automobile company, continued gaining streak for the sixth straight session on Thursday, rising as much as 7% in intraday trade on the BSE as investors remained bullish on the stock after it unveiled a plan to foray into the electric vehicle (EV) space. The smallcap stock gained over 32% in the past six trading days to hit over a three-year high of ₹363.80 intraday today, breaching its highest level since April 2019.

Extending its gaining streak, Atul Auto share price opened flat at ₹338.50, but soon regained momentum and rose as much as 7.5% to touch a record high of ₹363.80 on the BSE. The counter saw a surge in buying activities as 1.7 lakh shares changed hands over the counter as compared to the two-week average volume of 0.42 lakh stocks. The market capitalisation stood at ₹784.80 crore at the time of reporting.

The share price of the Rajkot-based three-wheeler manufacturing company has zoomed 150% in the last six months, from its 52-week low of ₹145.10 on June 21, 2022. The auto stock has given a positive return of 76% in the past one year, while it has risen 26% in a month. The multibagger stock has outperformed the BSE Auto index, which climbed 11% in a year and 2% in the past six months.

Atul Auto in an exchange filing on January 11 announced its foray into the electric space with the unveiling of electric three-wheelers at the Auto Expo 2023. Atul Greentech Private Limited (AGPL), a subsidiary of Atul Auto, launched two electric three-wheelers, Atul Mobili and Atul Energie, at the Auto Expo 2023 in New Delhi. Atul Mobili is a passenger vehicle and Atul Energie is a cargo variant with distinct looks.

Vijay Kedia, Director at Atul Auto had said, “We at Atul Auto come with over three decades of legacy in three-wheeler manufacturing. With our new electric additions, we aim to be technology leaders and provide intelligent, data-driven last-mile connectivity.”

As per the company, the new cargo and passenger variants of electric three-wheelers, manufactured under the Make in India initiative, will be launched across the country, starting from Punjab, Gujarat, and NCR. The two variants will be made available in a phase wise manner across the country in Atul Auto’s dealerships. The company has two manufacturing plants, one in Rajkot and one in Ahmedabad.

Citing a report by IMARC Group, the company said the Indian electric three-wheeler market value is expected to reach $1,874.9 million by 2027, making it one of the fastest-growing sectors. The introduction of electric three-wheelers marks a new phase of growth and innovation for Atul Auto, it added.

The company said Atul Mobili and Atul Energie were built with industry-leading technology, telematics and Battery Management Systems (BMS). The company has in-house developed an advanced temperature controlled solution to enable the cooling of its AIS 156 battery pack, to ensure the e-vehicles operate seamlessly even in extreme weather conditions. The battery pack is integrated with the vehicle telemetry system that provides the drivers and fleet operators with timely insights through real-time monitoring and remote visualisation. This allows for real-time diagnosis of the functioning of the electric three-wheeler and thereby takes steps for preventive maintenance, it said.

The company claimed that Atul Energie is the industry’s first electric cargo three-wheeler to have a dual battery pack providing a superior range of 195 km (certified). The passenger variant, Atul Mobili comes with a range of 110 km (certified). “The vehicles are integrated with a motor drive from Valeo, the world leader in 48V drive system and chargers from leading charging manufacturing company Delta Q. Both the vehicles are powered by lithium-ion batteries that offer unparalleled safety, helping the drivers go the distance with minimum impact on the environment owing to its zero-emission technology,” it said.

Atul Greentech, a subsidiary of Atul Auto, is one of the country’s leading three-wheeler manufacturers. It is one of the youngest companies in the electric vehicle manufacturing sector, which specialises in manufacturing infrastructure and designing solutions for electric mobility components for domestic and export markets. With a presence across 21 states with 175 primary and 130 secondary networks, Atul’s dealership, sales, service, and spare parts network comprises over 600 touch points across the globe.