Telco Rides On Hopes Of Strong Sale Numbers

Mumbai, June 28: | Updated: Jun 29 2002, 05:30am hrs
Telco surged on the bourses on Friday clocking up huge volumes on the back of sustained buying in the commercial vehicles sector.

On The Stock Exchange, Mumbai (BSE), the stock surged about 3 per cent at Rs 155.25 as against its previous close at Rs 150.65. A total number of 13,39,225 shares were traded on the counter.

Dealers said that the latest surge is because the commercial vehicles sector is expected to come out with strong sales numbers for June 2002 in continuation of the strong sales figures that the sector reported for May 2002.

Company sources said that there is a structural shift taking place from rigid-axle vehicles to higher tonnage multi-axle vehicles, which spells higher efficiency for users. Multi-axle vehicles now account for 41 per cent volumes as against 5 per cent three years ago, company sources added.

Telco registered a 12 per cent rise in domestic vehicles to 12,453 vehicles in May 2002, as compared to the same month a year ago. Strong vehicle sales numbers escalated the stock by 28.6 per cent from Rs 120.85 on May 30 2002 to its current Rs 155.45. Analysts said that Telco’s maintenance of consistent sales raises confidence about the volume growth in fiscal 2002-2003. This will also translate into an improved first quarter performance ended June 30 2002 of commercial vehicles makers like Telco and Ashok Leyland, they added.