This EV stock traded higher in the second half of Friday’s trading session after the company signed an MoU with the Government of Uttar Pradesh to set up its first integrated commercial vehicle Bus plant focused on green mobility in the state. 

Share price of Ashok Leyland opened at Rs. 180.80 per share and gained 2% to reach its intra- day high of Rs. 183.75 per piece. In the last six months, the stock has grown by 30.27% and 125.72% in the last three years.

On 15 Sep 2023, the company signed a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh to set up its first commercial vehicle plant focused on Electric Vehicles (EV). This facility will have a capacity to manufacture 2500 buses per annum which is to be added under 18 months from the date of acquisition of land for setting up the plant and obtaining other statutory approvals.

The capacity of the facility is expandable to 5000 buses per annum in the near future. The initial investment decided by the company is set at Rs. 200 crore which may be expanded to Rs. 1000 crore in a few years.

The company has a market capitalization of Rs. 52,806 crore. As per its recent financials, revenue is down by 26.6% from Rs. 13205.55 crore in Q4FY23 to Rs. 9691.32 crore in Q1FY24. Its net profit of Rs. 794.59 crore in Q4FY23 fell 26.6% to Rs. 582.95 crore in Q1FY24. The company maintains an ROE of 17.26%

Ashok Leyland which comes under the Hinduja Group is one of the largest commercial vehicle manufacturers in India. The company is headquartered in Chennai and has a global presence through its manufacturing units in multiple countries in UAE and UK.

Written by Bhumika Khandelwal


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