This Multibagger Automobile Stock Secures Rs 700 Crore Defence Orders, Aims for 35 per cent Market Share in MCV & HCV Segment
The stock is up by 13 per cent from its 52-week low. Investors should keep an eye on this multibagger automobile stock.
Ashok Leyland, a prominent player in the Indian commercial vehicle sector, has announced a significant achievement in its defence business by securing multiple orders valued at over Rs 700 crore. These orders are set to enhance the company's role as a leading supplier of logistics vehicles to the Indian Army. The contracts include a diverse range of specialised vehicles such as the Stallion 4x4, Stallion 6x6, Short Chassis Bus, and Mobility System Travelling Platform, all designed to meet the demanding operational requirements of the armed forces. The deliveries for these orders are scheduled to commence in the next financial year, reinforcing Ashok Leyland's commitment to providing advanced land mobility solutions.
Mr. Shenu Agarwal, MD & CEO of Ashok Leyland, expressed pride in securing these orders, stating, 'For decades, Ashok Leyland has been a trusted partner in Defence mobility. We are immensely proud to have secured these new orders, which reinforce Ashok Leyland’s leadership in the sector and reaffirms our commitment to deliver cutting-edge solutions for the armed forces.' This development underscores the company's dedication to indigenous design and manufacturing, aligning with the 'Atmanirbhar Bharat' initiative, and solidifies its position as a key player in India's defence sector.
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Ashok Leyland, the flagship company of the Hinduja Group, is a major player in the Indian medium and heavy commercial vehicle (M&HCV) segment. It is the second-largest manufacturer of commercial vehicles in India and ranks fourth globally in bus manufacturing. The company holds a 31 per cent market share in the M&HCV bus and lorry segment and a 20 per cent share in the LCV segment as of FY24. Its business is primarily divided into commercial vehicles and financial services, with the former contributing 89 per cent to its revenue in FY24. The commercial vehicle segment saw a 78 per cent revenue growth between FY22 and FY24, driven by a 52 per cent increase in sales volume.
Ashok Leyland has a strong presence in 50 countries and operates eight manufacturing plants in India, with additional facilities in the UAE and the UK. The company is also active in the electric vehicle segment through Switch Mobility, with over 950 electric buses deployed globally. Ashok Leyland aims to achieve a 35 per cent market share in the lorries and buses MHCV segment and plans to launch new products regularly in the LCV segment. The company incurred a capex of Rs 481 crore in FY24 and is expanding its manufacturing capabilities with a new plant in Lucknow.
Ashok Leyland has a market capitalisation of Rs 61,271 crore. The company's 1-year return is 23.53 per cent, while the 3-year return stands at 82.95 per cent.
Today, shares of Ashok Leyland Ltd plunged 0.6 per cent to Rs 207 per share from its previous closing of Rs 208.65 per share with an intraday high of Rs 210.55 per share and an intraday low of Rs 205.05 per share. The stock is up by 13 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.