Atul Auto rallies on strong August sales performance

MUMBAI: Shares of Atul Auto witnessed a sharp spike of nearly 10 per cent intraday after the manufacturer of three-wheeler commercial vehicles reported sharp rise in its August sales.

The company reported sale of 3,204 units in August 2013, up 37.98 per cent, as compared to 2,322 units in the same month last fiscal. It has sold 13,778 vehicles in April-August 2013 period as against 11,692 vehicles in same period last fiscal.

The company had reported a healthy Q4FY13 results. Its net sales for the quarter grew 17 per cent to Rs 97 crore as compared to Rs 83 crore in year-ago period.

According to Reliance Securities report, the company had reported strong sales numbers for FY2013 (up ~19 per cent yoy to 32,040 units). The brokerage expects the company to improve its volume growth aided by capacity expansion in Gujarat plant, setting of an assembly plant in Sri Lanka, increasing dealership network and focus on exports.

It has a buy recommendation on the stock with a target price of Rs 269.

At 11:20 a.m.; the stock was at Rs 164, up 9.66 per cent, on the BSE. It touched a high of Rs 164.90 and a low of Rs 152.45 in trade today.