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Lower November sales drive Ashok Leyland share down 2% intraday

Domestic sales were down 4 percent at 9,364 units as against 9,727 units in November 2020, while medium and heavy commercial vehicle sales were up 5 percent to 4,661 units

December 02, 2021 / 01:13 PM IST
 
 
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Ashok Leyland  traded lower by over 2 percent intraday on December 2.


The Hinduja flagship on Wednesday reported a 2 percent decline in commercial vehicle sales to 10,480 units in November. It had sold 10,659 units a year ago.


Domestic sales were down 4 percent at 9,364 units as against 9,727 units in November 2020, Ashok Leyland said in a regulatory filing. Medium and heavy commercial vehicle sales were up 5 percent to 4,661 units from 4,422 units during the period.


Sales of light commercial vehicles in the domestic market were down 11 percent to 4,703 units from 5,305 units in November 2020, the company said.


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The stock was trading at Rs 118.70, down Rs 3.25, or 2.67 percent, at 12:42pm on December 2. It touched an intraday high of Rs 122.55 and an intraday low of Rs 118.30.


Research firm Prabhudas Lilladher expects Ashok Leyland to regain its share once the bus segment (about 45 percent share) and southern market recovers and the company rolls out its CNG vehicles.


“Improvement in fleet utilisation levels led by higher infra spending, construction and mining, improved financing availability and pickup in replacement demand will keep MHCV demand upbeat,” it said.


“Factoring in the EBITDA loss in H1 and a 6 percent reduction in volume estimate, we lower the FY22 EBITDA by 30 percent (margin reduction of 230 bps),” Emkay Global Financial Services said in a report. The brokerage firm has reduced its FY23-24 EBITDA estimates by 2 percent each, citing cost pressure.

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Moneycontrol News
first published: Dec 2, 2021 01:13 pm

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