LIC-Backed EV Company Secures Order for 500 Electric Buses from MTC; LIC Increases Stake for Two Consecutive Quarters
FIIs increased their stake from 22.03 per cent to 24.39 per cent in Q2FY25.
Ashok Leyland, the Indian flagship of the Hinduja Group and a leading manufacturer of commercial vehicles in the country, announced that its subsidiary, OHM Global Mobility, has secured an order for 500 ultra-low floor electric buses from the Metropolitan Transport Corporation (MTC) in Chennai.
OHM, which focuses on Mobility-as-a-Service solutions, aims to bolster Ashok Leyland's prominent position in the bus segment and demonstrates the company's commitment to promoting sustainable urban mobility in India.
Under the contract awarded by MTC, Switch Mobility, another subsidiary of Ashok Leyland, will supply the advanced EiV12 model buses. OHM will operate and maintain these buses for 12 years. Of the 500 buses, 400 will be non-AC, while 100 will feature air conditioning, ensuring a comfortable travel experience for passengers in Chennai.
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These electric buses are designed to comfortably accommodate 37 seated passengers, with space for 24 standing passengers. With a range exceeding 200 kilometers per charge, they are well-suited for Chennai's extensive urban routes, providing reliable service across the city. Engineered for comfort and efficiency, the ultra-low-floor design facilitates quicker and easier boarding, enhancing passenger convenience, improving accessibility, and reducing travel time.
The shares of Ashok Leyland Ltd are trading at around Rs 213.70 per share. The company’s current market capitalization stands at Rs 62,751 crore. The stock has delivered a return of over 25 per cent in the past 1 year.
As per the Quarterly Results, in Q1FY25, Ashok Leyland Ltd recorded a revenue of Rs 10724 crore. The operating profit for Q1FY25 stood at Rs 1868 crore, and the net profit was Rs 551 crore. Looking at the annual performance, the company generated a revenue of Rs 45791 crore in FY24. The operating profit for FY24 was Rs 7943 crore, with a net profit of Rs 2696 crore.
According to the shareholding pattern, promoters own 51.52 per cent, and public investors own 12.24 per cent. FIIs and DIIs owns a 22.03 per cent & 14.12 per cent stake in the company. LIC Increased its stake from 1.41 per cent to 2.03 per cent in Q1 FY25.
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Disclaimer: The article is for informational purposes only and not investment advice.