A long forgotten auto stock from the stable of CK Birla Group Not only is it defying the ongoing sell-off on Dalal Street, it has also reversed multibagger, Iconic Hindustan Motors stock ambassador carhas increased by 125 percent in just 3 weeks when Sensex There was a loss of about 3 percent.

Since May 25, Smallcap has been regularly hitting the upper circuits to reach new 52-week highs every day. On Monday too, the stock was trading at Rs 24.35, touching the upper circuit limit of 5 per cent. With a market cap of a little over Rs 500 crore, the stock’s PE has also gone up to 26 times.

fast rally in Hindustan Motors shares This came after reports that the Ambassador car that once ruled the Indian roads will be back with a new engine and design in the form of ‘Ambee’. To manufacture the modern EV, Hindustan Motors has signed an MoU with a European company, the report said.

Hindustan Motors director Uttam Bose was quoted in the report as saying that HM and the European carmaker may invest Rs 600 in the joint venture and the new car is likely to be launched in 2024.

In the last financial year 21-22, the company had reported no revenue from operations as against Rs 1.17 crore in FY 21. However, other income stood at Rs 14.58 crore as against Rs 11.01 crore in FY2011. The company’s profit increased to Rs 18.65 crore from Rs 3.76 crore a year ago.

However, the stock is yet to get an analyst rating.

(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times)