Here is why Ashok Leyland should be on your watchlist!

Focus on the futuristic products (Electric Vehicles) and the debottlenecking of its LCV factories can create positive sentiment for the stock. 

In a recent update that can help shareholders understand about plans of Ashok Leyland on electric vehicle segment, Ashok Leyland has decided to set up a 'mother EV’ plant in India under UK- subsidiary Switch. It is decided that Switch UK will set up a subsidiary in India which in turn will put up the plant in India. Ashok Leyland will shift the entire electric vehicle business to Switch including the existing orders. 

Ashok Leyland will also spend  upto Rs 750 crore on debottlenecking the LCV factories and other residual spend. According to the management, the debt-to-equity ratio of Ashok Leyland is low and they can afford to increase the debts from current levels. The source of funds for this activity will be debts.

Focus on the futuristic products (Electric Vehicles) and the debottlenecking of its LCV factories can create positive sentiment for the stock. 

Technically speaking the stock saw its prices cross the 50 DMA on Friday, thus keeping bulls in the driving seat for Ashok Leyland. In one month, the stock has slipped by 2.33 per cent while in one year the stock is up by 130 per cent. On a YTD basis the stock is up by 25 per cent.