Ater a disastrous 2012, things are not looking up for the commercial vehicle (CV) industry. Vinod Dasari, MD, Ashok Leyland told CNBC-TV18 that the industry will struggle for the next six months.
A market downturn for sometime was expected but we didn’t expect it to be this far down
Ater a disastrous 2012, things are not looking up for the commercial vehicle (CV) industry. Vinod Dasari, MD, Ashok Leyland told CNBC-TV18 that the industry will struggle for the next six months. However, he said Ashok Leyland is gaining market share and has called for increased government action to rescue the sector.
Dasari says, "A market downturn for sometime was expected but we didn’t expect it to be this far down. We are happy that while the industry is down 25 percent we are only down about 10 percent, so we have gained the market share. Suddenly, people have been asking me what should the government do to trigger the market."
Further, Dasari hopes that in the second round of Jawaharlal Nehru National Urban Renewal Mission (JnNURM) more accelerated funding for road projects takes place, some more mining licenses would be given and those things would accelerate the economy.
"We should give more incentives to organisations in India who want to export by taking away the Duty Entitlement Passbook Scheme (DEPB) which was hurting us. Inside the country, an excise duty cut or a rate cut would certainly be helpful. We won't see an immediate result, but atleast 2-3 months later the CV industry would get a benefit," adds Dasari.
Ashok Leyland stock price
On October 31, 2014, Ashok Leyland closed at Rs 46.35, up Rs 0.05, or 0.11 percent. The 52-week high of the share was Rs 46.80 and the 52-week low was Rs 14.90.
The company's trailing 12-month (TTM) EPS was at Rs 0.43 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 107.79. The latest book value of the company is Rs 15.69 per share. At current value, the price-to-book value of the company is 2.95.
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