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Ashok Leyland nears 52-week high post October sales, zooms 72% in 3 months

Ashok Leyland's total volumes were up 1 per cent year-on-year to 9,989 units in October, led by healthy 14 per cent growth each in trucks and LCVs

Ashok Leyland | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

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Shares of gained 4 per cent at Rs 85.35 on the BSE on Tuesday, gaining 8 per cent in the past two trading days after the company reported healthy growth in sales of trucks and low commercial vehicles (LCVs) in the month of October.

The stock of commercial vehicle maker was trading close to its 52-week high of Rs 87.50 touched on January 24, 2020. In past three months, it rallied 72 per cent, as compared to 8.6 per cent gain in the S&P BSE Sensex.

Ashok Leyland’s total volumes were up 1 per cent year-on-year (YoY) to 9,989 units in October, led by healthy 14 per cent growth each in trucks and LCVs. Overall M&HCV (medium & heavy commercial vehicles) volumes were down 10.6 per cent courtesy continued struggling bus segment (down 65 per cent YoY).

CV segment month-on-month (MoM) uptick continued, with trucks and LCVs continuing to lead the revival. reported 20 per cent MoM growth in total volumes. The company sold total 8,344 units sold in the month of September. On domestic front, company is witnessing strong demand for LCVs from e-commerce and rural

is a prominent player in the domestic CV space with healthy market share in the M&HCV category (32 per cent). With nearly two years of decline in the CV space, the category is expected to bottom out in the next three to six months, thereby benefitting Ashok Leyland, going forward. With CV cycle on the cusp of cyclical recovery, we upgrade the stock from 'HOLD' to 'BUY' with a revised target price of Rs 90, ICICI Securities said in recent report.

Meanwhile, the board of directors of Ashok Leyland is scheduled to meet on Friday, November 6, 2020 to consider and approve the financial results of the Company for the quarter and half-year ended September 30, 2020.

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First Published: Tue, November 03 2020. 10:39 IST