Leyland gets rerating shot in the arm

DALAL STREET SPIKES

Commercial vehicle and bus major, Ashok Leyland was in limelight on renewed buying after a domestic broking firm re-rated the stock after the company's fourth quarter results.

The stock as a result gained nearly 5 per cent in Tuesday's trading to hit a high of Rs 217.85 before closing at Rs 216.35. The counter witnessed impressive volumes of 2.46 lakh shares at the BSE.

The stock was equally active at the National Stock Exchange with volumes accounting for 4.18 lakh shares. The scrip gained 4.59 per cent to close at Rs 216.40.

According to market analysts, the recently battered auto stocks were back in limelight in anticipation of good monsoon and strong sales numbers in the coming months.

While the domestic broking firm has re-rated the stock citing attractive valuation and strong export growth, the report cautioned about a slowdown in commercial vehicle sales growth.

Ashok Leyland reported a 31.6 per cent growth in fourth quarter net profit at Rs 87.30 crore, on a 23.5 per cent growth in net sales at Rs 1120 crore.