52-week high alert in this multibagger stock: This automobile company bags defence orders worth Rs 800 crore!
The stock is up by 40 per cent in 2 years and over 230 per cent in 3 years.
Ashok Leyland, the Indian flagship of the Hinduja Group and the largest supplier of logistics vehicles to the Indian Army today announced significant order wins, valued at Rs 800 crore in the Defence Sector. The contracts awarded also include the procurement of the Field Artillery Tractor (FAT 4x4) and the Gun Towing Vehicle (GTV 6x6).
The FAT 4x4 and GTV 6x6 are specialized vehicles employed by the artillery for towing light and medium guns, respectively. Both these platforms were prominently featured in the initial positive indigenization list announced by the Government of India. Ashok Leyland's selection for these crucial Defence contracts underscores the company's commitment to indigenous manufacturing and its position as a trusted partner for the Indian Armed Forces.
Speaking on the order win Mr Shenu Agarwal, MD and CEO, Ashok Leyland said, "We are immensely proud to have secured these orders from the Indian Army. The Defence business has been a strong pillar of growth for us, and this win further establishes our leadership in the Defence mobility vehicles business. This is also a testament to our firm commitment to providing advanced mobility solutions for our armed forces. We are grateful for the trust placed in Ashok Leyland by the Government of India, and we remain dedicated to contributing to the country's indigenization efforts and self-reliance in defence manufacturing."
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According to the financials, the company has a market cap of over Rs 50,000 crore. The net sales increased by 33 per cent to Rs 13,203 crore and the net profit skyrocketed by 411.78 per cent to Rs 803 crore Q4FY23 over Q4FY22. The net sales increased by 66.65 per cent to Rs 42,292 crore in FY23 over FY22. The company reported a net profit of Rs 1,350.91 crore in FY23 compared to a net loss of Rs 292.97 crore in FY22, an increase of 561.11 per cent.
On Tuesday, shares of Ashok Leyland Ltd surged 0.58 per cent to Rs 173.40 per share from its previous closing of Rs 172.40. The stock also traded at a new 52-week high of Rs 174.95 per share.
The stock is up by 40 per cent in 2 years and over 230 per cent in 3 years. Investors should keep an eye on this multibagger automobile stock.
Disclaimer: The article is for informational purposes only and not investment advice.