The shares of Ashok Leyland rallied more than 5.5% and closed at Rs 113 on the back of healthy sales numbers posted by the company for the month of August.
The shares of Ashok Leyland rallied more than 5.5% and closed at Rs 113 on the back of healthy sales numbers posted by the company for the month of August. The shares touched Rs 113.25 in the intraday trade; marginally short of the 52-week high at Rs 114.35 which the company had earlier touched on the 8th of August on NSE.
Yesterday, the company reported a 25 per cent growth in total sales during August at 13,634 units, as against 10,897 units a year ago. The numbers include both medium and heavy commercial vehicles (M&HCVs) and light commercial vehicles (LCVs). In the medium and heavy commercial vehicles segment, the company registered a 29 per cent growth in August. Ashok Leyland sold 10,567 units of M&HCVs during the month, as against 8,201 units a year ago. LCV sales rose by 14 per cent to 3,067 units from 2,696 units a year ago.
Ashok Leyland is a flagship firm of the multi-industry conglomerate– Hinduja Group, and also the country’s second-largest commercial vehicle manufacturer.
Ashok Leyland has rallied more than 33% in the year so far. However, in the last one month the stock has seen a correction of more than 2%.The equity benchmark Sensex is up by more than 19% in the year.
The company had reported a standalone net profit of Rs 111.23 crore for the first quarter ended 30 June 2017. “Despite all the challenges, our robust market share growth exemplifies the technological leadership of Ashok Leyland,” managing director Vinod K Dasari had observed about the result. On the outlook for the forthcoming quarters, the company said: “The next three quarters look promising as the demand is expected to pick up on the back of government spending on infrastructure as well as positive impact of GST.”