Atlas Cycles Hits Upper Circuit for 10th Consecutive Day Amidst Strong Stock Surge
Shares of Atlas Cycles (Haryana) have been on a remarkable upward trajectory, with the stock hitting the upper circuit for the 10th straight day on Friday, climbing 10% to ₹112.78 on the Bombay Stock Exchange (BSE). Over the past 10 trading sessions, Atlas’ share price has surged by an impressive 71%, up from ₹66.13.
As of 02:04 PM, around 30,000 equity shares had been traded, with pending buy orders for approximately 600,000 shares on both the BSE and the National Stock Exchange (NSE). Despite the stock’s strong performance, the broader market was flat, with the BSE Sensex down 0.02% at 77,603. The market capitalization of Atlas now stands at ₹73.31 crore. The stock price has seen an astounding rise from ₹29 on August 2, 2021.
The surge in Atlas’ stock price follows the resumption of its trading, which had been suspended due to non-compliance with financial reporting requirements. The suspension was lifted on December 27, 2024, and trading resumed in the “T” group, a surveillance measure that involves trade-to-trade settlement. Atlas’ shares had been suspended since December 16, 2020, due to delays in filing financial results.
In a recent statement on January 6, 2025, Atlas Cycles clarified that the recent surge in its stock price was due to market conditions, over which the company has no control. It emphasized that all relevant information and events impacting the company’s performance had been disclosed to the stock exchanges as required. The company also confirmed that there were no pending disclosures that could influence the price movement.
Atlas Cycles, which manufactures bicycles and bicycle components, has seen growth in the bicycle industry, despite the broader economic slowdown. The bicycle market has grown by around 4-5% over the past two years, with fancy and kids’ cycles, particularly those with advanced features like disc brakes and shockers, driving much of the growth. The company notes that these segments are growing at rates of 7-8% annually, especially in metro and mini-metro cities, as disposable incomes rise among the middle class.
India remains the second-largest bicycle manufacturer globally, with a growing demand driven by population growth, health consciousness, and socio-economic needs in rural areas. The demand for fancy and kids’ cycles is expected to increase faster than traditional roadster cycles. However, Atlas faces competition from small, unorganized manufacturers that are able to offer bicycles at lower prices, putting pressure on industry profitability. Despite the quality concerns, these smaller players are capturing increasing market share due to their cost advantage.
As Atlas Cycles continues to experience significant stock movement, the company remains focused on navigating the challenges posed by the competitive landscape while capitalizing on emerging trends in the bicycle market.
