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

An extended-forgotten auto inventory from the secure of CK Birla Group shouldn’t be solely defying the continued selloff on Dalal Avenue however has additionally turned multibagger. The inventory of Hindustan Motors, well-known for the enduring Ambassador car, has rallied 125 per cent in simply 3 weeks when the Sensex misplaced practically 3 per cent.

Since Could 25, the smallcap has been repeatedly hitting higher circuits to scale new 52-week-highs each 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 a little bit 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 studies that the Ambassador automotive, 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 fashionable EV, Hindustan Motors has signed an MoU with a European firm, studies mentioned.

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

Within the final monetary 12 months 21-22, the corporate had not reported any income from operations as towards Rs 1.17 crore in FY21. The opposite revenue, nonetheless, 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 12 months in the past.

The inventory, nonetheless, has no analyst ranking but.

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