Bus manufacturer bags new order worth Rs 345.58 crore from Tamil Nadu State Transport Corporation & announces price increase effective January 2025

The stock is up by 47 per cent from its 52-week low of Rs 157.65 per share.

Ashok Leyland Limited has secured a significant order from the Tamil Nadu State Transport Corporation (TNSTC) for the supply of 1475 BSVI Diesel Fuel Type Passenger Bus Chassis. This order, valued at approximately Rs 345.58 crore, was awarded through a standard tender process and adheres to prudent business norms and conditions. The domestic contract is slated for execution between December 2024 and May 2025.

Ashok Leyland Ltd has also announced a price increase of up to 3 per cent on its entire range of Commercial Vehicles, effective January 2025. This increase, necessitated by rising inflation and commodity prices, will affect all products across the range, with the exact percentage varying by model and variant. While this move aims to mitigate the impact of higher input costs, Ashok Leyland remains dedicated to innovation, operational efficiency, and sustainability in the commercial vehicle sector.

Ashok Leyland is the 4th largest manufacturer of buses in the world and India’s largest bus manufacturer. This order is another significant stride in fortifying its leadership position and further emphasizes the enduring trust that Tamil Nadu STUs consistently bestow upon Ashok Leyland's outstanding products and services. The company has a market cap of over Rs 67,000 crore.

Today, shares of Ashok Leyland Ltd plunged 0.70 per cent to Rs 228.3 per share from its previous closing of Rs 229.85 per share with an intraday high of Rs 232.95 per share and an intraday low of Rs 225.75 per share. The stock is up by 47 per cent from its 52-week low of Rs 157.65 per share. Investors should keep an eye on this multibagger automobile stock.

Disclaimer: The article is for informational purposes only and not investment advice.