Hindustan Motors steers market volatility, shares double in 1 month

New Delhi, June 16

Shares of Hindustan Motors have swum against the tide in the past one month and managed to accumulate healthy returns for its investors.

The shares of the automobile company more than doubled in the past 30 days. To be precise, it rose 103 per cent.

Notably, it reportedly hit upper circuits for 15 consecutive sessions in a row. At 2.28 pm, the shares were at Rs 23, as against Rs 11 same time previous month.

During the same period, domestic benchmark indices declined about 5 per cent over concerns of high inflation as well as inflationary expectations and the subsequent raise in policy rates, which in turn may hurt growth.

The company was established during the pre-Independence era at Port Okha in Gujarat. Operations were moved in 1948 to Uttarpara in district Hooghly, West Bengal, where the company began the production of the iconic Ambassador.

The company currently manufactures the Ambassador (1500 and 2000 cc diesel, 1800 cc petrol, CNG and LPG variants) in the passenger car segment and light commercial vehicle 1-tonne payload mini-truck Winner (2000 cc diesel and CNG) at its Uttarpara and Pithampur plants.

It also has operations in Pithampur near Indore in Madhya Pradesh where it produces 1800 cc CNG and other variants of Winner.

According to the BSE website, the company's current market capitalization is worth Rs 482 crore.