Introduction: The share price of this automobile firm engaged in the manufacture and sale of commercial vehicles surged around 2 percent to an intraday high of Rs 228.5 per share on Monday after the company received an order worth Rs 981 crores from Maharashtra State Transport Corporation (MSRTC) for the supply of Viking passenger bus.
Share price movement: With a market capitalization of Rs 66,686 crores, the shares of Ashok Leyland Limited surged around 1.23 percent at 11:43 am trading at Rs 227.15 apiece on Monday’s market hours. The shares of this company generated an overall return of 32 percent over the past year and 30 percent over the past 6 months.
What happened: According to Ashok Leyland Limited’s stock exchange filings, the firm has received an order worth Rs 981.45 crores from Maharashtra State Transport Corporation (MSRTC) for the Supply of 2104 nos units of Viking passenger bus. The buses will be manufactured at Ashok Leyland bus body plants and the time period by which the order needs to be executed is from August 2024 to August 2025, as per the exchange filings.
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Financials: Reviewing the financials of Ashok Leyland Limited on a year-on-year basis, the revenues rose by 10 percent from Rs 41,673 crores in FY23 to Rs 45,791 crores in FY24. In the same time frame, the net profits increased from Rs 1,359 crores to Rs 2,696 crores, demonstrating a 98 percent increase.
Ratios: In terms of return ratios for the year 2024, it has reported a return on equity (ROE) of 27.58 percent and a return on capital employed (ROCE) of 17.46 percent.
EBITDA and net debt: Ashok Leyland Limited recorded an EBITDA of Rs 4,607 crores as of June 2024 up by 57 percent from last year and the Net debt stood at nearly zero for the same period.
Medium-term goals: Ashok Leyland Limited aims for a market share of above 35 percent as a part of its medium-term goals where currently the MHCV market share is safely above 30 percent. Ashok Leyland is planning to significantly expand in the North and East regions. Additionally, they have plans to enter a joint venture with TVS to strengthen their presence in the National Capital Region (NCR).
Shareholding Pattern: As of March 2024, Ashok Leyland Limited’s shareholding pattern stood at 51.52 percent for promoters, 14.79 percent for the public, 21.45 percent for foreign institutional investors, and 12.23 percent for domestic institutional investors.
About the Company: Headquartered in Chennai, 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. It is also engaged in the manufacture and sale of commercial vehicles. Ashok Leyland also manages driver training institutes across India and has trained over 8,00,000 drivers since inception.
Written By Zahal
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