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heartily welcome you once again to Stock Market Studies. Today, I will talk about a person who has created a huge portfolio by earning a good amount of money from the market, meaning multi-billion dollar returns. Everyone knows his name, everyone recognizes him. His name is Vijay Kedia. I will talk about him because the biggest investment in his portfolio right now is the company I will discuss today.
He has made the highest investment in that company at this time. I will share with you in full detail about which company it is. How much growth is that sector? To what level can that company reach in the future? I will discuss it in full detail. So, watch the video till the end. If you haven't subscribed to my channel yet, then definitely do so.
So, let me first talk about this company's sector. See, the company has a significant name in the three-wheeler industry because there are many players in the three-wheeler industry. I will also discuss in which categories this company is working and how is it making its products. I will tell you everything because first of all you have to know how much growth is there in this sector, see first of all many governments, state governments in many different states are promoting electric vehicles as well as three wheelers which are EVs a lot, like if I show you directly how the Delhi government has announced, you can see Delhi X means extends electric vehicle policies by three months, that is the Delhi government had talked that electric means EVs which are three wheelers will be promoted, all the vehicles running on CNG are causing a lot of pollution, to reduce that, now the e-buses of three wheelers will be launched and this was obviously announced in the time of March and that is in the time of December in 2023 and after that it was also extended because this policy will be implemented at least after three months, now see if that policy is implemented or not, then in future more and more people will be encouraged to use EVs on this.
We are going to pay attention to this, so first of all I will share with you the detailed list of all the leading players in this sector. For example, among all the companies in three-wheeler India, who has the highest market share is Bajaj Auto. You all know this, it has 36% market share. After that, see how many companies are there, like Mahindra's was sold.
So this is a data report, I am going to share more data details with you, so let's discuss one by one. The company I will be discussing today is LU and this company wants to bring a revolution in the auto industry because the company works on all the three-wheelers and other products manufactured in the auto sector.
If you look carefully at the company's business, the company has an overall experience of 30 years in this field. Along with this, it is also being said that the company works on every product, it also does sales and services. Along with that, the company 's The growth is such that the company has reached the ranking of almost the top five three- wheeler companies in India and is supplying its autos to 15 countries on three continents.
Along with this, the company's product is not only on the roads, look at the company, the company is selling products of all categories like petrol, diesel, LPG and CNG electric here, so imagine how much strength the company has, how much growth it has and the company has also crossed 1 million in total auto sales, so the company has 15 different models, this means the total company has 15 different models which the company is selling here, it has more than 300, more than 320 touch points, so think that the company has a different level of strength, perhaps that is why Vijay Kid ji took some good decisions on this company, whether it is a good decision or a bad decision, you will know right now, before that I am going to share some points with you like about this company I will share with you one data on this that the sales data of June 2024 came, then I got to see a data which I found the best because see here it is being told that the company has sold 2628 units, that is, a total of so many vehicles were sold and that too according to the data of June 2024 and in the previous years, according to the data of June 2023, it is being known that how many were sold at that time was 1267, so almost in one year, that is, the total vehicle sales have doubled, so this is a good point for any company and it is also being told that the total, here I will mark you once, the total sales of April to June, so the total sales from April to June month were approximately 6651, so to what level the vehicles are seen increasing by the company, which last time in the previous years, at the same time, 3000 were sold, this time it increased to a total of 6600 Meaning, in one quarter, the company sold more than 6650 units, so the overall percentage wise figure is around 115%, so this is a very good point because the company, which was once a loss- making company, is gradually converting into profit today.
So, the good points that I saw here, let us now look at some more detailed data about the company, like look at the company, the first important point is whether the company increased its capex. If I talk about capex, then if we look at the company in terms of Covid, during the time of Covid, the company had taken the capex to Rs 50 crore.
Today the capex has reduced a bit, no problem. I will definitely highlight the rest of the points of the company with you, like look at the companies, in the three-wheeler industry, I have already said that the company has a market share of more than 2% and it has a market share of 10% over three-wheeler cargo vehicles, as well as three-wheeler passenger vehicles.
It has a market share of top 5, so we cannot call it a bad company, if the percentage of this company is so good then there are chances of growth and see, the company means the business it is doing, the entire business focus is on auto industry, it works on auto industry at 93, the rest is non-banking financial, that is, you see, to buy any vehicle you also need finance, so the company has also created its own finance, if you go to buy a vehicle then the company itself will finance you, this is also called non-banking finance, so basically the cargo department of the company is doing business at 43, selling passenger vehicles at 36 and selling e-rickshaws, that is, electric rickshaws at 11, so imagine how much growth is going to come here because e-rickshaws are going to grow a lot, along with this, the spare parts that the company is selling for providing services are around 885, so you can see how the business has expanded, so see the company is selling at 91 in India and the rest in 15 countries.
The company is selling its products which is 85% which means that most of the products are being sold in India only. Right now if I talk about its pair group then I will share a few points with you like Tool Auto as well as Scooter India, both of these work on this segment. If I talk about both then I have seen the most recent growth in both of them on the LTO because the market cap is also good.
Now look at the promoter's holdings, it is fine, no problem. The sales growth on year on year basis is very good. Return of equity and return of capital at 126. A little weakness was seen here. Right now see the company is still in straggling mood because the loss making company is slowly turning into profit, so it will take some time.
For example, if we look at the sales growth of the company, then look at the sales of the company in a year. After the sales in 2019, it decreased after Covid, after that the company is slowly trying to recover again, from around 300 crores to 317 crores. Crores were made, currently it is 515 crores and if I talk about the profit growth of the company, then see, the profit growth which the company was doing well in 2019 and 2020 gradually started decreasing and according to that, this time the profit of the company again came in positive because in the last 2021, in 2022, there was a loss, now that has also converted into profit, now let me share one more point with you, is the growth of the company really happening well, if seen, in the last 12 months of the company, the sales growth of the company has increased by 29 and in the last 12 months, the profit growth has grown around 900, in a best way, sales and profit growth was seen here, which I think is enough for a good growth, so perhaps that is why institutions, that is, there is a buy call on this company as well, that is why perhaps Vijay Kate ji is also on this company If I want to continue, if I talk about the balance sheet of this company, which I found to be the best point, because at one time the company's debt was negligible, today some debt has been raised, the rest of the company's reserves are seen increasing in a very spectacular manner and the fixed assets have also increased, that is, last in 2006, that is, if we go back 10 years, then the company had assets of 29 crores, sorry, 29 crores, today it has become 250 crores and the interesting thing is that you should also see how the debt taken on the company is being erased, see the borings taken by the company, the company is also erasing that debt gradually, it is not that the company is not able to erase the debt, these points seemed to me the best and the third thing is that you can see how many assets the company purchased, in fixed asset purchases, the company has a debt of only 67 crores, sorry, assets are being purchased continuously, this time also the company is repaying the debt of around 8 crores.
Purchased sorry, the company also purchased assets worth 88 crores. Overall, you have to pay attention to the investors of the company. Look carefully, the promoter has holdings at 42 per cent. Who else has holdings with the public? Look, it is a small company because the market cap of the company is around 1700 crores.
It is a small micro cap sorry small cap type company, so institutions will not trust it so easily because in the sector where there are many leading players, there is a company like Bajaj Auto in the name of Securities Limited, they also picked up holdings at 2.71 per cent, so overall they alone have holdings at 20 per cent.
So think, if Vijay Kadia ji alone picked up holdings at 20 per cent in overall 100% shares, it does not mean that if a big investor has invested in this company, you will also rush towards this company. Never do like this, you will have to understand things first. Let us now look at the technical charts.
When the company got listed, its price was 89 and that was the year then. After 2013, the company took off like a rocket and its performance was also good at that time. After that, gradually the auto industry slowed down and the company's fortunes turned and it reached the same level from where it had started.
After that, the company slowly recovered after Covid and today it has reached the same level which was its lifetime high. Finally, if I talk about this pattern wise, the pattern I saw was that on the basis of a long journey, I got a very blessed button and if the company travels on that basis, then a swing trading can also be done.
But I am working on this company as a long term vision, so I will definitely continue it for the long term. So, do not take any decision on my decision. Do not take any decision on PG KTG's decision. If you want to work on this company, then do it on the basis of your opinion. Discuss it once with your service advisor.
So this was it. If you like today's company details video, please like it and also subscribe to the channel. Thank you.
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