The Indian stock market remained under selling pressure on Friday, but shares of Atlas Cycles (Haryana) attracted the attention of investors in this environment.
- Shares of this micro-cap company hit 10% upper circuit on BSE.
- The share price rose to ₹112.78.
- The stock has jumped 71% in the last 10 trading days, rising from the level of Rs 66.13 to the current price.
Trading was closed for a long time
- Shares of Atlas Cycles were last traded on August 2, 2021, when it closed at ₹29.
- Subsequently, on December 16, 2020, BSE and NSE suspended trading of its shares due to delay and non-filing of financial results.
- BSE canceled the trading suspension from December 27, 2024, after which the stock came back to trading.
- The shares of the company are now trading in “T” group.
BSE asked for clarification
BSE asked the company to clarify its position on the rise in shares.
- The company responded on January 6, 2025:
- “Share price fluctuations are entirely a result of market conditions. The company has no control over this nor do we have any specific information.”
Board meeting to be held on January 17
Atlas Cycles has informed that the meeting of the Board of Directors will be held on 17 January 2025.
- Financial results may be announced in this meeting.
- Shareholding Pattern:
- Promoters: 41.92% stake.
- Public: 58.08% stake.
Company Introduction
- Atlas Cycles is a leader in the manufacturing of bicycles and bicycle equipment.
- Even though there has been a general slowdown in the Indian economy, the bicycle industry has registered a growth of 4-5% in the last two years.
- The standard cycle segment contributes 55% of the company’s total sales. However, this segment is growing at a slower pace than fancy and kids cycles.
Important information for investors
- Reason for bullishness:
- Due to sudden demand in the market, upper circuit was seen in the stock.
- BSE raised questions about this, but the company denied any inside information.
- future prospects:
- There may be further volatility in the stock after the announcement of financial results.
- The steady growth of the bicycle industry is a positive sign for the company.
