Multibagger in the making or mere speculation? This small-cap player rallied over 110% in just 15 sessions
Shares of the company have soared nearly 113 per cent to Rs 22.10 on June 8, 2022 from Rs 10.38 on May 19 last month
- Jun 9, 2022,
- Updated Jun 9, 2022 1:27 PM IST
A buzz about the comeback of the iconic Ambassador car with an all-new electric model has rejuvenated Hindustan Motors shares on Dalal Street in the past 15 trading sessions. Take this: shares of the company have soared nearly 113 per cent to Rs 22.10 on June 8, 2022 from Rs 10.38 on May 19 last month. On the other hand, the benchmark BSE Sensex gained 4 per cent during the same period.
Meanwhile, the BSE had sought clarification from Hindustan Motors on May 30 regarding a significant movement in share price. However, the reply is still awaited from the company.
A report suggested that the Ambassador car, once called the ‘Wheels of India’, is likely to hit the Indian roads in a new avatar in the next two years. Some reports also suggested that Hindustan Motors’ other iconic car Contessa may also be re-launched in the domestic market.
For the year ended March 31, 2022, the company posted a net profit of Rs 18.65 crore against Rs 3.76 crore a year ago. The company reported ‘Nil’ revenue from operation in FY22 against Rs 1.17 crore in FY21. Other income of the company stood at 14.58 crore in FY22 against 11.01 crore in FY21.
Since January 2000, shares of the company had scaled a closing high of Rs 88.85 in January 2008 and a closing low of Rs 2.63 in March 2020.
The latest shareholding pattern showed that promoters held Amita Birla, Nirmala Birla, Hindusthan Discounting Company, Amer Investments (Delhi), Birla Brothers Private Limited, Bengal Rubber Company, Gwalior Finance Corporation, Central India Industries and National Bearing Co (Jaipur), among others together held 32.34 per cent stake in the company as of March 31, 2022. On the other hand, the country’s biggest insurer Life Insurance Corporation of India had a 2.61 per cent stake in the company.
Commenting on the further movement of Hindustan Motors, Kranthi Bathini, equity strategist, WealthMills Securities said, “The stock has run up after the initial media reports. It is speculation and there is no confirmation about the recent development of re-launching the electric cars and also two-wheelers. There is no update on stock exchanges till now. Being a small-cap company, there is a heightened activity in the stock as Ambassador is a big brand in India. At this time investors need to wait and see how the things will progress.”
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A buzz about the comeback of the iconic Ambassador car with an all-new electric model has rejuvenated Hindustan Motors shares on Dalal Street in the past 15 trading sessions. Take this: shares of the company have soared nearly 113 per cent to Rs 22.10 on June 8, 2022 from Rs 10.38 on May 19 last month. On the other hand, the benchmark BSE Sensex gained 4 per cent during the same period.
Meanwhile, the BSE had sought clarification from Hindustan Motors on May 30 regarding a significant movement in share price. However, the reply is still awaited from the company.
A report suggested that the Ambassador car, once called the ‘Wheels of India’, is likely to hit the Indian roads in a new avatar in the next two years. Some reports also suggested that Hindustan Motors’ other iconic car Contessa may also be re-launched in the domestic market.
For the year ended March 31, 2022, the company posted a net profit of Rs 18.65 crore against Rs 3.76 crore a year ago. The company reported ‘Nil’ revenue from operation in FY22 against Rs 1.17 crore in FY21. Other income of the company stood at 14.58 crore in FY22 against 11.01 crore in FY21.
Since January 2000, shares of the company had scaled a closing high of Rs 88.85 in January 2008 and a closing low of Rs 2.63 in March 2020.
The latest shareholding pattern showed that promoters held Amita Birla, Nirmala Birla, Hindusthan Discounting Company, Amer Investments (Delhi), Birla Brothers Private Limited, Bengal Rubber Company, Gwalior Finance Corporation, Central India Industries and National Bearing Co (Jaipur), among others together held 32.34 per cent stake in the company as of March 31, 2022. On the other hand, the country’s biggest insurer Life Insurance Corporation of India had a 2.61 per cent stake in the company.
Commenting on the further movement of Hindustan Motors, Kranthi Bathini, equity strategist, WealthMills Securities said, “The stock has run up after the initial media reports. It is speculation and there is no confirmation about the recent development of re-launching the electric cars and also two-wheelers. There is no update on stock exchanges till now. Being a small-cap company, there is a heightened activity in the stock as Ambassador is a big brand in India. At this time investors need to wait and see how the things will progress.”
Also Read: Tesla proceeds with China hiring event even after Musk's job warning
Also Read: FreshR raises $1.2 mn in new funding round led by Axilor Ventures, 1crowd