Greater Noida: Mumbai-based ace investor Vijay Kedia is now betting that Atul Auto NSE -0.88 %’s EV would turn out to be India’s Tesla in the three-wheeler category.
“A new multi-year bull cycle has started in the auto industry. The slowdown that we saw earlier has now more or less ended. In the case of three-wheelers, the earlier peak is yet to be reached. I think we are going to cover lost ground in 2023-24. We will also see the same trend in other segments also. The worst phase is over and we are seeing a new sunrise,” Kedia told ETMarkets. He was here in Greater Noida to attend the Auto Expo 2023.
When asked about his favourite auto stock, he spoke about Rajkot-based Atul Auto which has announced foray into the electric vehicles (EV) space with the unveiling of cargo and passenger variants of electric three-wheelers at the Auto Expo.
At present, 20% of the three-wheeler market in India is cargo and the remaining is used for passenger vehicles. “Now we are going to see a reversal of this trend and that too on a higher base. The cargo volume is going to explode in India because three-wheelers give last mile connectivity. Due to the dominance of e-commerce players, the demand is going to increase. It is cost effective also,” Kedia said.
Within EVs, which is regarded as a sunrise sector in India, Kedia said three-wheelers would be the first one to see mass-scale adoption. “Three-wheeler cargo can rise 40-50% year-on-year in India. In fact, I see it as a global trend in the years to come,” he said.
Atul Auto’s September quarter shareholding pattern data shows that Kedia’s firm owns 1.47% stake in the smallcap stock that has rallied over 64% in the last 6 months.
Two months ago, the company had approved a preferential issue of warrants worth around Rs 100 crore to Kedia, taking his total holding in the company to around 20% at present.
“The company is in the right place at the right time and with the right products. The trend has just started. I am confident that Atul Auto has made India’s Tesla in three-wheelers,” said the investor, who is also a director in the company.
