Ashok Leyland share price gains after sales rise 4.4% MoM

Ashok Leyland's exports were up 7.4 percent at 927 units against 863 units (YoY).

March 01, 2021 / 12:08 PM IST
 
 
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Ashok Leyland share price gained a percent intraday on March 1 after the company reported a  19 percent increase in total sales in February at 13,703 units against 11,475 vehicles sold in the year-ago period

Total sales grew 4.4 percent at 13,703 units against 13,126 units (MoM), the company said in an exchange filing.

Its light commercial vehicle sales jumped 44 percent at 5,901 units against 4,107 units (YoY). Its medium and heavy commercial vehicle sales were up 6 percent at 7,802 against 7,368 units (YoY).

Exports were up 7.4 percent at 927 units against 863 units in the year-ago period. The stock was trading at Rs 130, up Rs 1.10, or 0.85 percent. It has touched an intraday high of Rs 134.20 and an intraday low of Rs 128.50. The scrip also witnessed a spurt in volume by more than 1.23 times.

The Hinduja Group flagship firm said it entered an agreement with Nissan International Holding BV to acquire a 38 percent stake in Hinduja Tech for Rs 70.20 crore.

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"The company has entered into a share purchase agreement with Nissan International Holding BV to acquire 58,500,000 shares for a total consideration of Rs 70.20 crore, constituting 38 percent in the paid-up share capital of Hinduja Tech Ltd. Consequent to the aforesaid acquisition, HTL will become a wholly-owned subsidiary of the company," Ashok Leyland said in a regulatory filing.

The company reported a net loss of Rs 19.38 crore in the December quarter, down 169.84 percent from Rs. 27.75 crore profit in the year-ago period.

Brokerage firm Anand Rathi expects the replacement demand for a higher tonnage and multi-axle vehicles to kick in by the second half of FY22, leading to a significant volume-led operating leverage and margin expansion.

It believes earnings will be significant in FY22. Lower debt is a positive. It has upgraded the rating to a "buy", with a target of Rs 149 (29x FY23E).

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Moneycontrol News
first published: Mar 1, 2021 12:08 pm

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