Ashok Leyland's Shares Reach Highest Ever Value
Published On Mar 22, 2016
The share value of Ashok Leyland touched an all-time high of Rs. 101, spiking by 4% on the National Stock Exchange (NSE).
The company had witnessed a sound sales report for this month, continuing its sharp recovery from the market slowdown that had hit two years ago. On the medium and heavy duty side, sales rose by 31% on a year-on-year basis, reaching 10,798 units against 8,230 units in the earlier year. The LCV segment, which was faced with a slower recovery, showed positive signs. The company rolled out 2,605 LCV units this year, against 2,532 units a year ago, yielding a meagre 3% growth.
The company foresees further growth on the backdrop of rising replacement demands and increased freight activity. Movement in the infrastructure and construction area is also expected to strengthen heavy commercial vehicle growth. “The strong momentum is likely to continue into Q4 and the industry will likely register double digit growth in FY17. While the macro economic situation remains mixed, nonetheless M&HCV demand will likely remain robust on a low base, strong replacement demand and growth in segments like mining,” a report from IDFC Securities recently stated.
Massive trading had been taking place on the counter, with a total of 11.36 million shares exchanged in the NSE and the BSE combined. Ashok Leyland's shares have witnessed sound performance off late, as have most other firms in the CV domain. Since the start of this month, it had risen by nearly 15%, with the company announcing a strong 25 percent sales growth in February.