Budget 2017: What may be in store for Ashok Leyland stock

A look at how the stock has moved in the past year and what it may get from Budget 2017

Moves to boost development of public transport under the smart cities plan, higher allocation to defence space and expectations of tax breaks on research and development (R&D) to promote fuel-efficient and environment-friendly vehicles in the previous Budgets have kept interest on the stock high. 

Current Budget: This year’s Budget could see higher allocation to the defence sector. Given the magnitude of the orders, Ashok Leyland could be a major beneficiary. A scrappage scheme for older commercial vehicles will also boost volumes across segments, while focus on the infrastructure segment should help the tipper segment gain traction.

Note: Net sales and net profit are for trailing 12 months ended September 2016; Price, market cap and PE ratio are as on Jan 25, 2017; sales, profit and market cap figures are rounded off. Source Capitaline/Exchange

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