Ashok Leyland bags new orders for 1,225 buses; upbeat quarterly numbers propel stock upward

Ashok Leyland has secured a major order for 1225 buses from Karnataka State Transport Undertakings (KSRTC, NWKRTC, and KKRTC). This deal, valued at approximately Rs 522 crore, marks a significant win for the Indian commercial vehicle manufacturer.

The order specifies the delivery of fully built, AIS 153-certified, BSVI-compliant Viking buses with advanced iGen6 technology and powerful H Series engines. These buses are designed for Mofussil operations, prioritizing safety, comfort, and reduced overall cost of ownership.

This domestic order highlights Ashok Leyland’s commitment to providing state-of-the-art passenger transportation solutions within India. The project is expected to be completed between January and April 2024, further bolstering the company’s presence in the Karnataka market. This win not only strengthens Ashok Leyland’s position but also underlines the growing demand for advanced and efficient public transportation solutions in India.

Financial Performance

Ashok Leyland Limited reported a strong second quarter for FY24, with a net sales increase of 19.08% to Rs 11,374.90 crore, compared to Rs 9,552.66 crore in the same quarter last year. The operating profit also experienced a significant increase of 83.08%. The net profit for the quarter stood at Rs 566.35 crore, which was Rs 183.59 crore in the previous year’s same quarter.

Business Overview

Ashok Leyland is the flagship Company of the Hinduja group, having a long-standing presence in the domestic medium and heavy commercial vehicle (M&HCV) segment. The company has a strong brand and well-diversified distribution and service network across the country and has a presence in 50 countries, it is one of the most fully-integrated manufacturing companies. The company is headquartered in Chennai.

Stock Price Movement

Today, the stock opened at Rs 171.05, with a high and low of Rs 174.05 and Rs 167.90, respectively. The stock is currently trading at Rs 173.75, which increased by 1.40%. The stock has a 52-week high of Rs 191.45 and a 52-week low of Rs 133.10. The company has an ROCE of 11.4% and an ROE of 15.0%, with a market capitalization of Rs 51,103 crore.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.