Synopsis: Autoriders International, a micro-cap luxury car rental company, has delivered exceptional returns of up to 2,700 percent over the past year. With a strong corporate client base, stable margins, improving balance sheet, and ace investor Mukul Agrawal as a shareholder, the stock has drawn increased market attention.
Some micro-cap stocks quietly deliver strong returns without much attention. Over the past year, one such micro-cap stock has stunned the market by delivering returns that few would have imagined possible, even in a strong bull phase. The presence of ace investor Mukul Agrawal in the shareholding has added to the market’s interest in this lesser-known stock. But what exactly lies beneath this stunning rally, and does the business justify the meteoric rise?
Autoriders International Limited is a Mumbai-based luxury car rental company that has been operating in India since 1994. The company is engaged primarily in providing chauffeur-driven automobile rental services to both individuals and institutions. In addition to this core offering, Autoriders also undertakes local and international tour management services, catering largely to premium and corporate clientele.
Over the years, the company has steadily built its operational footprint and as of March 31, 2025, its owned fleet comprised 472 vehicles. This fleet includes a mix of hatchbacks, sedans, SUVs, and premium vehicles, allowing the company to serve a wide spectrum of customer requirements while maintaining a focus on quality and reliability.
Autoriders is headquartered in Mumbai and operates through eight branch offices located in Ahmedabad, Bangalore, Delhi, Chennai, Hyderabad, Pune, Gurgaon, and Kolkata. This multi-city presence enables the company to service corporate clients with pan-India requirements and ensures geographic diversification of revenue streams.
The company is led by Managing Director and CEO Mr. Chintan Patel, supported by a board that includes Mrs. Maneka Mulchandani, Mr. Janak Patel, Mr. Pranav Salil Kapur, Mr. Prankil Amin, and Mr. Anil Shankar Kulkarni. The management team brings close to two decades of industry experience, which has played a key role in sustaining long-term client relationships and ensuring repeat business.
The stock is currently trading around Rs. 741, with a market capitalization of approximately Rs. 258 crore. Notably, ace investor Mukul Mahavir Agrawal holds a 10.56 percent stake in the company, having first invested in December 2024. Since that point, the stock has delivered extraordinary returns of up to 2,700 percent, making it one of the standout performers in the micro-cap space.
Services Offered
Autoriders positions itself as a comprehensive premium mobility solutions provider, offering a range of car rental services designed to meet both personal and corporate travel needs. The company operates across more than 100 cities in India, giving it a wide service reach beyond its branch locations.
Its flagship offering remains chauffeur-driven car rental services. This segment focuses on providing customers with professional drivers, well-maintained vehicles, and a high level of service reliability. The offering is particularly attractive to corporate clients who value safety, punctuality, and consistency over price alone.
Another key service vertical is airport transfers. Autoriders has built this offering around timely pickups, ease of booking, and local operational expertise. The service covers major airports across India and is supported by city-based drivers who are familiar with traffic conditions, airport zones, and optimal routes, ensuring on-time arrivals and departures. The company also operates in the self-drive car rental segment, catering to customers who prefer flexibility and independence.
Customers can book vehicles up to 60 days in advance, with a minimum reservation period of four hours. The self-drive fleet includes reliable and popular models such as the Honda City, Toyota Innova, Toyota Etios, and Mahindra XUV, reinforcing the company’s emphasis on quality over scale. By offering a mix of chauffeur-driven, airport transfer, self-drive, and long-term rental solutions, Autoriders is able to address multiple customer use cases while maintaining a premium positioning.
Client Base
According to a report by CARE, Autoriders’ customer base is predominantly composed of reputed corporate clients across various industries. These include financial institutions, travel agencies, and large multinational corporations. The company’s client list features well-known names such as Exxon Group, Standard Chartered Bank, Ernst and Young, Infosys, among others.
A notable aspect of the business model is the high level of repeat business. Over the last four years, the top ten customers have contributed approximately 40 to 50 percent of the company’s total revenue from operations. This level of concentration, while noteworthy, also provides revenue visibility and reflects strong client stickiness built over years of consistent service delivery.
Geographically, the customer base remains diversified due to the company’s operations across eight major Indian cities. This reduces overdependence on any single market and allows Autoriders to benefit from corporate travel demand across multiple economic hubs.
The company’s focus on institutional clients, rather than purely retail customers, also provides a degree of insulation from price-led competition that dominates the mass market segment of the car rental industry.
Financial Snapshot
Autoriders has delivered robust financial growth in recent years. Over the last three years, the company has recorded compounded profit growth of 40 percent and compounded sales growth of 38 percent, highlighting a strong earnings trajectory. In FY25, the company reported revenue of Rs. 86.14 crore, up around 4 percent from the previous year, and net profit of Rs. 8.38 crore, driven by an increase in fleet size and gradual geographical expansion. On a trailing twelve-month basis, revenue has increased to Rs. 93.09 crore, while net profit stood at Rs. 8.48 crore.
Operating profitability has remained stable. The company reported operating margins of 28.79 percent in FY25, while trailing twelve-month margins moderated slightly to 27.64 percent. PBILDT margins remained steady at 28.50 percent in FY25, largely unchanged from 28.56 percent in the previous year. Over the past four years, Autoriders has consistently maintained operating margins in the range of 25 to 29 percent, reflecting operational stability.
The balance sheet has shown meaningful improvement. Borrowings declined sharply from Rs. 32.16 crore in March 2025 to Rs. 18.18 crore by September 2025. At the same time, fixed assets increased from Rs. 57.10 crore to Rs. 66.68 crore over the same period, indicating continued investment in fleet expansion.
Capital structure metrics also improved, with overall gearing reducing to 0.65 times in FY25 from 0.89 times in the previous year. The TOL to TNW ratio stood at 0.81 times, down from 1.11 times. Interest coverage remained healthy at 8.60 times in FY25.
According to a report from CARE, Liquidity remains adequate, supported by expected gross cash accruals of Rs. 20 to 22 crore in FY26 against debt repayment obligations of Rs. 11.75 crore. Average working capital utilization stood at around 50 percent during the twelve months ended April 2025, with an operating cycle of 32 days. The company also reported free cash and bank balances of Rs. 6.44 crore as of March 31, 2025, along with a current ratio of 1.25 times.
Importantly, Autoriders has generated consistent operating cash flows, with cumulative operating cash flow of approximately Rs. 56 crore over the last three years, underscoring the cash-generative nature of the business.
Key Risks
Despite its strong financial performance and recent stock price momentum, Autoriders faces certain structural risks. The company’s scale of operations remains modest, largely due to the service-driven nature of its business and its dependence on corporate travel demand. Smaller scale limits financial flexibility during periods of stress and restricts the company’s ability to fully benefit from economies of scale.
As of March 31, 2025, the company’s net worth stood at Rs. 49.51 crore, which remains relatively constrained. While the preferential equity allotment of Rs. 8.99 crore in FY25 has provided additional support, sustaining growth while preserving profitability remains a key monitorable.
The Indian car rental industry is also highly competitive. A large unorganized segment continues to dominate the market, while organized players such as Ola and Uber have increased competitive intensity in recent years. Pricing pressure and competition could impact margins over the medium term.
That said, Autoriders differentiates itself by focusing on institutional clients, where reliability, security, and service quality often matter more than price alone. This positioning provides some insulation, though competitive pressures cannot be ruled out.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
