Ashok Leyland Shares Rebound from Initial losses, End 3.03 Percent High
Published On Feb 18, 2016
On Wednesday, in the early sessions of trading, Hinduja Group's flagship, Ashok Leyland's shares witnessed a decline of 2.68 percent after it was served with joint venture (JV) termination notice from its Japanese partner Nissan over non-payment of royalty. However, it subsequently recovered from initial losses and closed at Rs. 90.10, thus reviving by 3.03 percent.
The share value of the company opened at Rs. 87.30 and saw a low of Rs. 85.10. At one point, the scrip touched a high mark of Rs. 90.50 in the trade. Sensex on Wednesday closed at 189.90 points, registering a growth of 0.82 percent.
The Japanese major Nissan decided to quit the JV in wake of Ashok Leyland's move to appeal to the district court over legal issues. They have formed three JVs under the name 'Ashok Leyland Nissan'.
A researcher from Angel Broking stated, “We believe the termination of the technological collaboration of Nissan with Ashok Leyland is unlikely to have material impact on the Ashok Leyland financial. We are not clear as to whether Ashok Leyland would be able to sell the existing products given the termination of the technological agreement and await clarity on the same. As of now, we are maintaining our earnings assumptions and 'Buy' rating on Ashok Leyland.”
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