Shares of Automotive Stampings & Assemblies have delivered stellar returns to investors in the last one year, rising 1600 percent. The Tata Group stock rose from ₹32 to ₹544, as much as 1,599 percent in the last 1 year. In comparison, the benchmark Nifty rose around 19 percent.
An investment of ₹1 lakh in the microcap stock last year would have turned to ₹16.99 lakh currently.
Promoter Tata Autocomp Systems held a 75 percent stake or 1.18 crore shares in the firm at the end of the March quarter.
Automotive Stampings and Assemblies Limited (ASAL) manufactures sheet metal components, welded assemblies and modules for passenger vehicles, commercial vehicles and tractors. ASAL's two state-of-art Plants - at Pune, Maharashtra and at Pantnagar (Uttarakhand) build wide range of auto components and assemblies for global automobile leaders such as Tata Motors Limited, Fiat, Piaggio and Ashok Leyland among others.
In the December quarter, the firm's net profit zoomed 109.97 percent to ₹39 lakh against ₹3.91 crore loss in the December quarter of the previous fiscal. Sales also climbed 45.02 percent to ₹162.26 crore in Q3FY22 against ₹111.89 crore sales in Q3FY21.
On an annual basis, the company's net loss widened to ₹29.70 crore in FY21 against a loss of ₹17.01 crore in FY20. Sales, however, fell 6.42 percent to ₹339.13 crore in the last fiscal against ₹362.40 crore sales for March 2020 fiscal.
However, the firm has outperformed its peers in the stock market.
While shares of JBM Auto gained 317 percent in one year, Precision Camsh climbed 211 percent, Talbros Auto added 152.62 percent, and Sharda Motor rose 109.08 percent.
Only 73.3 percent of analysts polled by MintGenie consider this stock to be of 'low risk'.
However, it is important to note that smallcap stocks are very high-risk stocks and investors should mostly avoid such stocks and only very high-risk investors with a fundamental knowledge of the markets should consider investing in them. While they give massive returns in small periods, the risks associated are also excruciatingly high. Also, investors must consult their financial advisors before buying these stocks.
Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.
