Automobile Corporation soars 20% to hit new record high on robust Q1 results

So far this year, the stock has more than doubled, nearly rising 100 percent

Shares of Automobile Corporation of Goa (ACGL) surged by 20 percent to Rs 2,861 per share on July 31, hitting an upper circuit limit and a new all-time high after reporting robust Q1FY25 results.

So far this year, the stock has more than doubled, nearly rising 100 percent, compared to the Nifty 50's 14 percent gain. It surpassed its previous high of Rs 2,540 per share, which it achieved on June 20, 2024.

In Q1FY25, ACGL's profit jumped 77 percent year-on-year (YoY) to Rs 17.9 crore from Rs 10.1 crore in the same period last year. Total income from operations increased by 34.7 percent YoY to Rs 203 crore, up from Rs 151 crore in Q1FY24.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by 72 percent YoY to Rs 25 crore, while EBITDA margins expanded by 287 basis points to 9.54 percent in the quarter ended June.

Promoted by Tata Motors and Tata Motor Finance, ACGL benefits from the extensive managerial support and expertise of the larger Tata group. Tata Motors holds a 48.98 percent direct stake and a 0.79 percent stake through Tata Motors Finance. The company manufactures and assembles bus bodies and produces sheet metal components for commercial vehicles.

According to CARE Ratings, ACGL leverages the management team and ingenuity of the Tata group through strong board representation.

The company's FY24 annual report highlighted a positive growth outlook for the industry, driven by government initiatives, rising demand, and opportunities in the electric vehicle (EV) segment aimed at achieving zero emissions. The report also noted the government's focus on developing infrastructure, including highways and electric mobility, which could drive growth in commercial vehicles and mass transportation solutions.

ACGL is working on product upgrades to meet market demands by diversifying its range to include new contemporary designs for school, staff, and EV segments.