Bus Manufacturing Company's Stake in Hinduja Leyland Finance Rises to 61.12 per cent After Rs 200 Crore Investment - Do You Own This Stock?

The stock is up by 14 per cent from its 52-week low. Investors should keep an eye on this multibagger automobile stock.

Ashok Leyland Limited has increased its stake in Hinduja Leyland Finance Limited (HLFL), a significant subsidiary, following an investment of Rs 200 crore. The Board of Directors of HLFL allotted 1 crore equity shares at an issue price of Rs 200 each, including a premium of Rs 190 per share, to Ashok Leyland. This strategic move has raised Ashok Leyland's shareholding in HLFL from 60.39 per cent to 61.12 per cent. This development aligns with Ashok Leyland's ongoing efforts to strengthen its financial services segment, which has seen significant growth. The company's decision to increase its stake in HLFL underscores its commitment to expanding its financial services arm and enhancing its overall business portfolio. This strategic investment is expected to bolster Ashok Leyland's position in the financial services sector, contributing to its long-term growth objectives.

Ashok Leyland, the flagship company of the Hinduja Group, is a prominent player in the medium and heavy commercial vehicle (M&HCV) segment in India. It ranks as the second-largest manufacturer of commercial vehicles in India and holds significant positions globally as the fourth-largest bus manufacturer and ninth-largest truck manufacturer. The company operates across various business segments, with commercial vehicles contributing 89 per cent to its revenue in FY24. This segment has witnessed robust growth of 78 per cent between FY22 and FY24, driven by a 52 per cent increase in sales volume and a 17 per cent rise in realisations.

Ashok Leyland's product portfolio includes lorries, buses, light commercial vehicles, and defence vehicles, with notable product launches in FY24. The company also has a growing presence in the electric vehicle segment through Switch Mobility, with over 950 electric buses deployed globally. Ashok Leyland's strategic priorities include expanding its market share in the M&HCV segment, launching new products, and investing in manufacturing capabilities, including a new bus plant in Lucknow. The company aims to achieve a 35 per cent market share in the lorries and buses M&HCV segment and plans significant investments in its associate companies.

The stock's 52-week high is Rs 262.1, and the 52-week low is Rs 168.7. Ashok Leyland has a market capitalisation of Rs 63,121 crore. The company's 1-year return stands at 27.42 per cent, while its 3-year return is 89.38 per cent.

Today, shares of Ashok Leyland Ltd plunged 2.5 per cent to Rs 209 per share from its previous closing of Rs 214.98 per share with an intraday high of Rs 214.80 per share and an intraday low of Rs 205.17 per share. The stock is up by 14 per cent from its 52-week low. Investors should keep an eye on this multibagger automobile stock.

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