Higher revenue share from non-cyclical biz a positive for Ashok Leyland

The company's focus on less cyclical segments such as spares, defence and exports is expected to improve their share to 19% of revenue over the next three years, from 16% now

Ashok Leyland Ltd’s (ALL’s) stock has gained over 7 per cent in three trading sessions on robust June quarter volume numbers, value unlocking prospects in the near-term, and expectations of a double-digit truck sales growth over the next three years.
 
The rising proportion of non-cyclical business in overall revenues will keep top line growth steady and less volatile. Analysts at Kotak Securities say recent concerns on slowdown in the truck segment are unwarranted as tonnage growth continues to outpace the rise in volume. This reflects a healthy demand environment and a positive freight growth. The stock, which had corrected