2,460 per cent jump in net profit: This multibagger automobile company bags a new order for 1,666 buses from Tamil Nadu State Transport Undertakings!

The stock gave multibagger returns of over 1,000 per cent in 1 decade whereas BSE Sensex Index is up by 222 per cent.

Ashok Leyland, the Indian flagship of the Hinduja Group and the country’s leading commercial vehicle manufacturer, announced that it has bagged an order from TN STUs (Tamil Nadu State Transport Undertakings) for 1,666 buses. This is the single largest BSVI order received from State Transport Undertakings and will further contribute to strengthening Ashok Leyland's dominant position in the bus industry.

Ashok Leyland has been the most preferred brand by TN STUs with more than 18000 Ashok Leyland buses operational in its fleet, comprising over 90 per cent of the total fleet. These buses will be specially designed to ensure outstanding passenger comfort and will be equipped with the advanced iGen6 BS VI technology, featuring a robust 147 kW (197 hp) H-series engine. This engine is expected to enhance safety, comfort and reduce the overall cost of ownership (TCO).

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.

According to the financials, the company has a market cap of over Rs 51,000 crore. The net sales increased by 14.42 per cent to Rs 9,691.32 crore and the net profit skyrocketed by 2,460 per cent to Rs 582.95 crore in Q1FY24 over Q1FY23. 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 Friday, shares of Ashok Leyland Ltd surged 0.74 per cent to Rs 175.85 per share from its previous closing of Rs 174.55 with an intraday high of Rs 176.80 and an intraday low of Rs 173.35.  

The stock gave multibagger returns of over 1,000 per cent in 1 decade whereas BSE Sensex Index is up by 222 per cent. Investors should keep an eye on this multibagger automobile stock.

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