Ashok Leyland shares gain 3% on defence ministry's Rs 1-bn contract win

Shares of Ashok Leyland on Friday settled with over 3 per cent gains on winning a contract from the defence ministry for supplying high mobility vehicles.

Hinduja flagship firm Ashok Leyland on Friday said it has bagged a contract from the Ministry of Defence (MoD) for supplying High Mobility 10x10 vehicles (HMV 10x10) to carry Smerch Rockets, with an initial order worth over Rs 1 billion.

Following the announcement, the shares of the company opened at Rs 145.10 apiece and touched an intra-day high of Rs 150.30, up 3.72 per cent over the previous closing price.

At the end of today's trade, the stock was quoted at Rs 145.45 per unit, up 3.14 per cent on the BSE.

On the NSE, the stock opened at Rs 145.90 and touched an intra-day high of Rs 150.55. The shares finally ended at Rs 149.30, up 2.89 per cent.

Ashok Leyland's HMV 10x10 has been fully developed in India and order will end a long search by the Indian Army, which have been looking for HMV 10x10s to carry the Smerch Rockets, the company said in a statement.

This will pave Ashok Leyland's way for newer opportunities in providing mobility platforms for other missile carriers, missile launchers, modular bridges and other critical loads, Ashok Leyland Head Defence, Amandeep Singh said.