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Ashok Leyland gains after order win

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Ashok Leyland rose 2.54% to Rs 82.80 after the company said it bagged an order for 1,750 buses from Tamil Nadu State Transport Undertakings.

This order comes closely on the back of orders received from various state transport undertakings recently, the company added. The announcement was made during market hours today, 27 November 2019.

Speaking on the win, Mr. Sanjay Saraswat, president-MHCV, Ashok Leyland, said, "With this order win, our order book for the state transport undertakings has enhanced significantly."

This week, Ashok Leyland signed a memorandum of understanding (MoU) with ICICI Bank for a strategic financing partnership for two years.

The MoU aims to provide customised financial solution to customers across lndia with focus on semi-urban and rural geographies. With this MoU, ICICI Bank will be a preferred financier for providing finance to the customers buying Ashok Leyland vehicles.

Ashok Leyland reported a 35% fall in total vehicle sales to 9857 units in October 2019 as against 15149 units in October 2018. Total medium and heavy commercial vehicles (M&HCV) sales declined 48% to 5126 units in October 2019 over October 2018. Signed MoU can help the company out of the economic slowdown as it will provide more funding options to customers.

On the technical front, the stock's RSI (relative strength index) stood 61.60. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 50-day placed at Rs 73.68 and 200-day moving average (DMA) placed at Rs 80.24.

Ashok Leyland, flagship of the Hinduja group, is one of the largest manufacturer of commercial vehicles in India and also amongst the biggest manufacturers of buses and trucks globally.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, November 27 2019. 10:37 IST