Atlas Cycle shares soar on hike in customs duty

Shares of Atlas Cycles traded with strong gains for a second consecutive day on the back of a proposal to hike customs duty on imported bicycles.

Shares of the company traded 7% higher at Rs 421.90 on the National Stock Exchange at 1500 hours. The stock had soared 20% on Friday. The Nifty traded 60 points lower at 5,257.

The FM has proposed a hike in customs duty on imported bicycles from 10% to 30%, which is a positive for the company.
Prices of Atlas Cycles' across categories were 3.5% higher than others. Atlas Cycles operates at 1.5% net profit margins.

The market share of the company is expected to increase from 38% to 45% after the hike comes into force.

Foreign competitors have a 40% market share in rural areas.