The shares of India’s second-largest manufacturer of commercial vehicles gained 2.2 percent after the company announced an investment of Rs 1,200 crore in Switch Mobility Automotive Ltd.
Ashok Leyland Ltd is a Large-cap company with a market capitalization of Rs 51,015 crores. On Friday, The company shares were trading at Rs 173.60 a share, an increase of 2 percent from the previous close price of Rs 170.43 a share.
According to the company’s filing, Ashok Leyland Ltd announced the investment of Rs 1,200 crores in Switch Mobility Automotive as equity through its holding company Optare PLC UK. The purpose of this investment is for capital expenditure, R&D, and meeting operational requirements both in the UK and India.
Switch Mobility Ltd is an automobile company that had major success in gathering orders from State Transport Undertakings. As of now Switch in India and UK has over 800 + buses plying successfully and has an order book of over 1200 buses.
Examining the business’s financials, the company’s revenue increased 19 percent from Rs. 9,600.08 crores in Q2FY23 to Rs 11,429.04 crores in Q2FY24. Further, During the same period, Net Profit increased by 208 percent from Rs 183.59 crores to Rs 566.35 crores.
The company reported excellent return ratios in the recent financial year with a return on equity (ROE) of 17.26 percent and a return on capital employed (ROCE) of 12.34 percent.
Ashok Leyland Ltd’s recent shareholding pattern, the company’s promoter’s own 51 percent, retail shareholders own an 11.67 percent stake, and foreign institutional investors own a 20.21 percent stake in the company.
Ashok Leyland Ltd has a long-standing presence in the domestic medium and heavy commercial vehicle (M&HCV) segment, it is one of the most fully-integrated manufacturing companies.
Written By:- Abhishek Singh.
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