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Ashok Leyland Outshines Industry with Exceeding Growth Figure

Published On Feb 26, 2016By Prashant Talreja

Ashok Leyland, the wholly owned subsidiary of Hiduja Group is riding high on immense success rate that it registered over the last nine months. According to the market data, its volumes have grown double to that of any other commercial vehicle manufacturer in the country. This significant growth in its volume helped the company to ear 340 basis points in the stock market. Despite tough competition from the players and legal disputes with its JV partner Nissan, Ashok Leyland has managed to surpass the expectations with unprecedented growth figure. An improved dealer network and new service centers across India have also fueled its surge in the market.

The company foresees a continued demand for its products in the upcoming financial year, thanks to the investment drive in infrastructure segment. It also estimates that falling fuel prices would also add to the already heightened demand. In the recent past, M&HCV segment has witnessed a significant rise due to continued demand. This enabled Ashok Leyland to increase prices of some of its products that eventually boosted company's average realization by 3.2 percent in the nine month period. After witnessing a mammoth growth in the domestic CV segment, the company is now looking towards export market by stretching its presence in Latin America, South East Asia and African markets. It is outlining its strategy to earn more than quarter of its income through exports in next five years. Currently, Ashok Leyland earns about ten percent of its revenue through exports.

The company is projecting its stock value to be around 16.6 times its earning in the upcoming fiscal year. This comes on back of steady gains in the share market complimented by improving returns on equity. Currently, the manufacturer is eyeing the re-surging LCV segment and has already announced its plans to launch two new products: Sunshine and Guru in the upcoming financial year.

See Also:

Ashok Leyland Hopes for Roll-out of GST Bill in 2016 Budget Session

Rift with Nissan Pulls Ashok Leyland's Shares Down by 3%

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