During Thursday’s trading session, the shares of India’s leading commercial vehicle manufacturer surged nearly 2 percent to Rs. 218.3 on BSE, after the company’s subsidiary secured order for 500 Electric Buses from Metropolitan Transport Corporation (MTC), Chennai.
With a market cap of Rs. 63,515 crores, at 12:01 p.m., the shares of Ashok Leyland Limited were trading in the green at Rs. 216.3, up by nearly 1 percent, as against its previous closing price of Rs. 214.2.
What’s the news:
According to the latest regulatory filings with the stock exchanges, OHM Global Mobility, a subsidiary of Ashok Leyland, secured an order for 500 ultra-low floor electric buses from the Metropolitan Transport Corporation (MTC), Chennai.
Switch Mobility, another subsidiary of Ashok Leyland, will supply the EiV12 model buses to OHM, which is responsible for operating and maintaining the buses for a period of 12 years, as per the contract awarded by MTC.
Out of the 500 buses, 400 will be non-AC, while 100 will feature air conditioning, ensuring a comfortable travel experience for passengers in Chennai.
The electric buses are designed to accommodate 37 seated passengers, with space for an additional 24 standing passengers. With a range exceeding 200 kilometres on a single charge, these buses are well-suited for Chennai’s extensive urban routes, providing reliable service throughout the city.
Engineered for comfort and efficiency, these buses have an ultra-low-floor design that facilitates quicker and easier boarding, enhancing passenger convenience, improving accessibility, and reducing overall travel time.
Previous News:
On 7th October, Ashok Leyland announced initiating the delivery of its first fully electric vehicle, the 14T Boss Electric Truck, to BillionE during the Bharat Mobility Global Expo 2024 held in New Delhi.
Additionally, BillionE has placed a large order of 180 electric vehicles with the company, including the BOSS Electric Truck and the AVTR 55T Electric Tractor, valued at around Rs. 150 crores, with delivery scheduled for Q4 FY25.
Financials:
The company reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 10.7 percent, rising from Rs. 9,691 crores in Q1 FY24 to Rs. 10,724 crores in Q1 FY25.
However, during the same period, the company’s net profit decreased from Rs. 584 crores to Rs. 551 crores, representing a decline of around 5.7 percent YoY.
Financial Ratios:
In terms of key financial metrics, Ashok Leyland reported a Return on Equity (RoE) of 28.4 percent and a return on capital employed (RoCE) of 15 percent for the period spanning FY23-24. Further, the net profit margin stood at 5.85 percent during the same timeframe.
Stock Performance:
The stock has delivered positive returns of nearly 27.7 percent in one year, as well as around 22 percent returns in the last six months. So far in 2024, the shares of Ashok Leyland have given positive returns of about 16 percent.
About the company:
Ashok Leyland Limited, one of the top 5 largest manufacturers of buses in the world and India’s largest bus manufacturer, is primarily engaged in the business of manufacturing and sale of a wide range of commercial vehicles, along with manufacturing engines for industrial and marine applications, forgings and castings.
Written by Shivani Singh
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