Ashok Leyland gains after m-o-m sales rise

Ashok Leyland's total auto sales (domestic + exports) in November 2019 fell 22% to 10,175 units from 13,119 units in November 2018.

However, on a month-on-month basis, the total auto sales rose 3.22% from 9,857 units in October 2019. The announcement was made on Sunday, 1 December 2019.

The scrip traded 0.13% higher at Rs 79.20. It traded in the range of Rs 77.55 and Rs 79.65 so far during the day.

The company's domestic auto sales slumped 25% to 9,377 units in November 2019 from 12,570 units in November 2018. The domestic auto sales, however, rose 3.33% from 9,074 units in October 2019.

Last week, Ashok Leyland signed a memorandum of understanding (MoU) with ICICI Bank and Axis Bank for a strategic financing partnership for two years.

The company's net profit slumped 89.5% to Rs 56.85 crore on a 48.3% decline in net sales to Rs 3867.99 crore in Q2 September 2019 over Q2 September 2018.

On the technical front, the stock's RSI (relative strength index) stood 52.02. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 50-day placed at Rs 74.74 but was below its 200-day moving average (DMA) placed at Rs 80.20.

Ashok Leyland, flagship of the Hinduja group, is one of the largest manufacturer of commercial vehicles in India and also amongst the biggest manufacturers of buses and trucks globally.

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