Rs 501,00,00,000 order: This multibagger commercial vehicle manufacturing company bags new order for 552 buses from Tamil Nadu State Transport Corporation!

The stock gave multibagger returns of over 1,000 per cent in 1 decade whereas BSE Auto Index is up by 225 per cent.

Ashok Leyland, a leading Indian commercial vehicle manufacturer, and TNSTC, the state transport corporation of Tamil Nadu, have joined forces to bring accessible public transportation to the people of the state. This landmark collaboration marks a significant step towards realizing the Tamil Nadu government's "Mobility for All" initiative, which aims to ensure convenient and inclusive access to public transport for everyone. The order is worth Rs 501,00,00,000. 

Under this agreement, Ashok Leyland will provide TNSTC with 552 Ultra-Low Entry (ULE) Diesel Non-AC buses. These modern buses boast several features designed to enhance passenger comfort and accessibility. They are equipped with powerful engines, step-less entry for easy boarding, and automatic transmission for a smoother ride. Additionally, the buses feature front disc brakes, electronically controlled air suspension, and an Intelligent Transportation System for improved safety and convenience. This system includes CCTV cameras, destination boards displaying real-time vehicle location, and passenger tracking for enhanced security and information access.

With this order, Ashok Leyland further strengthens its position as the preferred bus supplier for TNSTC, already having over 18,477 Ashok Leyland buses in its fleet. This collaboration highlights the company's commitment to providing innovative and sustainable transport solutions that cater to the diverse needs of the Indian market.

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.

Today, shares of Ashok Leyland Ltd plunged 0.41 per cent to Rs 169.35 per share from its previous closing of Rs 170.05 with an intraday high of Rs 171.30 and an intraday low of Rs 165.25. 

The stock gave multibagger returns of over 1,000 per cent in 1 decade whereas BSE Auto Index is up by 225 per cent. Investors should keep an eye on this multibagger automobile stock.

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