740 per cent jump in net profit: This automobile multibagger stock reports robust Q1FY24 results!
On Monday, shares of the company surged by more than 2.5 per cent and reached its 52-week high of Rs 186.45.
Ashok Leyland, the leading company of the Hinduja group, holds a prominent position in the domestic medium and heavy commercial vehicle (M&HCV) segment. Renowned for its strong brand and extensive distribution and service network across India, it also maintains a global presence in 50 countries. As one of the most fully integrated manufacturing companies, Ashok Leyland's headquarters is situated in Chennai. Additionally, the company operates driver training institutes across India and has successfully trained over 8,00,000 drivers since its establishment.
On July 21, 2023, Ashok Leyland announced their stellar Q1FY24 results in which sales of the company surged by 13.3 per cent to Rs 8,189 crore as compared to Q1FY23 while EBITDA of the company jumped by 156 per cent and stood at Rs 821 crore as compared to Q1FY23. Similarly, net profit of the company surged significantly by 747 per cent and stood at Rs 576 crore as against to Q1FY23.
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The company experienced robust demand for its modular AVTR range of trucks, and its network expansion efforts contributed to increased revenue and market share. In the LCV segment, the volumes grew, driven by the positive market acceptance of the Bada Dost range. Additionally, the Power Solutions and Aftermarket businesses significantly contributed to the company's overall revenue.
The company has delivered returns of 24 per cent over the past year and whopping returns of 263 per cent over the past 3 years. Additionally, the company has a ROCE of 12 per cent and a ROE of 15 per cent.
On Monday, shares of the company surged by more than 2.5 per cent and reached its 52-week high of Rs 186.45. Additionally, the scrip had a spurt in volume by more than 1.03 times.
Investors should keep a close eye on this trending stock.