adani: Neither Tata nor Adani, latest multibagger is a long-forgotten Birla stock

A protracted-forgotten auto inventory from the steady of CK Birla Group just isn’t solely defying the continued selloff on Dalal Avenue however has additionally turned multibagger. The inventory of Hindustan Motors, well-known for the long-lasting Ambassador automobile, has rallied 125 per cent in simply 3 weeks when the Sensex misplaced practically 3 per cent.

Since Could 25, the smallcap has been frequently hitting higher circuits to scale new 52-week-highs every single day. On Monday additionally, the inventory hit the 5 per cent higher circuit restrict to commerce at Rs 24.35. With a market cap of somewhat over Rs 500 crore, the inventory’s PE has additionally shot as much as 26x.

The sharp rally in Hindustan Motors shares got here after reviews that the Ambassador automobile, which was the king of Indian roads as soon as upon a time, will make a comeback with a brand new engine and design within the type of ‘Amby’. To construct the trendy EV, Hindustan Motors has signed an MoU with a European firm, reviews mentioned.

The report, quoting Hindustan Motors director Uttam Bose, mentioned HM and the European automobile maker are more likely to make investments Rs 600 within the three way partnership and that the brand new automobile is more likely to be launched in 2024.

Within the final monetary yr 21-22, the corporate had not reported any income from operations as towards Rs 1.17 crore in FY21. The opposite earnings, nevertheless, jumped to Rs 14.58 crore towards Rs 11.01 crore in FY21. The revenue of the corporate jumped to Rs 18.65 crore towards Rs 3.76 crore a yr in the past.

The inventory, nevertheless, has no analyst score but.

(Disclaimer: Suggestions, ideas, views and opinions given by the consultants are their very own. These don’t signify the views of Financial Occasions)