Share price of the world’s 4th largest manufacturer of buses experienced positive movement on Thursday, rising by 1.34 percent and closing the trading session at Rs. 173.55, up from its previous closing price of Rs. 171.4.
With a market cap of Rs. 51,045 crore, Ashok Leyland Limited has given about 0.26 percent returns in the past six months and nearly 18.9 percent in the last one year. So far, the company has given negative returns of over 6.6 percent in 2024.
According to the recent filings in the stock exchanges, Ashok Leyland secured an order for 1225 buses from Karnataka State Transport Undertakings namely KSRTC, NWKRTC, AND KKRTC.
The company will deliver a 210-inch wheelbase Viking fully built passenger buses which are AIS 153 certified and BSVI OBD II diesel fuelled for Mofussil operation featuring the advanced iGen6 BSVI Technology with a robust 147 kW H Series Engine expected to enhance safety, and comfort and reduce the overall cost of ownership.
The order of 1225 numbers of fully built Viking buses is to be delivered by April 2024 and costs approximately Rs. 522 crores.
Headquartered in Chennai, Ashok Leyland has been the most preferred brand by Karnataka State Transport Undertakings, boasting a fleet of more than 11,680 operational buses, that still adhere to AIS153 standards. The design of these buses places strong attention on ensuring superior comfort and safety for both passengers and drivers.
In terms of financials, the company’s revenue from operations on a year-on-year basis grew by 19.05 percent from Rs. 9,691 crore in the June 2023 quarter to Rs. 11,429 crore in the September 2023 quarter, accompanied by a 206.41 percent increase in net profit from Rs. 584.49 crore in June 2023 quarter to Rs. 569.31 crore in September 2023 quarter.
As of September 2023, FIIs hold 20.48 percent of the shares, whereas DIIs hold 14.66 percent of the shares in the company, aggregating to 35.14 percent of the institutional holdings.
The flagship of the Hinduja group, Ashok Leyland is the 2nd largest manufacturer of commercial vehicles in India, the 4th largest manufacturer of buses in the world, and the 19th largest manufacturer of trucks.
It is one of the most fully-integrated manufacturing companies with a presence in 50 countries and a long-standing presence in the domestic medium and heavy commercial vehicle (M&HCV) segment.
Written by Shivani Singh
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