Ashok Leyland gains speed after forming strategic alliance

Ashok Leyland gained 1.47% to Rs 107.15 at 10:10 IST on BSE after the company said that it has formed a strategic alliance with SUN Mobility to develop electric mobility solutions.

The announcement was made after market hours yesterday, 18 July 2017.

Meanwhile, the S&P BSE Sensex was up 118.62 points, or 0.37%, to 31,829.61.

On the BSE, 3.5 lakh shares were traded on the counter so far as against the average daily volumes of 18.87 lakh shares in the past one quarter. The stock had hit a high of Rs 107.65 and a low of Rs 106.65 so far during the day. The stock had hit a 52-week high of Rs 109.50 yesterday, 18 July 2016. The stock had hit a 52-week low of Rs 73.60 on 22 November 2016.

The stock had outperformed the market over the past one month till 18 July 2017, gaining 12.16% compared with Sensex's 2.11% gains. The scrip had also outperformed the market in past one quarter, gaining 29.41% as against Sensex's 8.16% rise. The scrip had, however, underperformed the market in past one year, gaining 13.61% as against Sensex's 14.29% rise.

The large-cap company has equity capital of Rs 292.65 crore. Face value per share is Re 1.

The global partnership between Ashok Leyland and SUN Mobility will leverage India's innovation and engineering potential to develop truly world class electric mobility solutions.

SUN Mobility is promoted by Chetan Maini, founder of Reva and Uday Khemka, Vice Chairman of SUN Group. It is a 50:50 joint venture between Virya Mobility 5.0 and Sun New Energy Systems, pioneers in areas of electric mobility and clean energy.

The company will announce its Q1 results on 21 July 2017. Ashok Leyland reported net profit of Rs 476.17 crore in Q4 March 2017 as compared with net loss of Rs 140.81 crore in Q4 March 2016. Net sales rose 10.8% to Rs 6617.89 crore in Q4 March 2017 over Q4 March 2016.

Ashok Leyland is one of the leading manufacturers of medium and heavy commercial vehicles in India.

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