Shares of the Ashok Leyland Ltd were up almost 8 per cent in trades
Shares of the Ashok Leyland Ltd were up almost 8 per cent in trades. The stock was trading at Rs 137.70 on NSE at 02:35PM (IST) on Monday, up 5.64 per cent from previous close
- Last Updated:May 23, 2022, 14:52 IST
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Shares of the Ashok Leyland Ltd were up almost 8 per cent in trades on Monday morning. The stock was trading at Rs 137.70 on NSE at 02:35PM (IST) on Monday, up 5.64 per cent from the previous close. Street also cheered the huge revenue jump in the company’s quarterly earnings. The stock quoted a 52-week low price of Rs 93.2 and a high of Rs 153.4.
The commercial vehicle maker exceeded Street expectations on all counts as it posted its earnings for the quarter ended March 2022. Profit came in much higher than what was expected at Rs 901.4 crore, while revenue saw a huge jump of 25 per cent on a year-on-year (YoY) basis to Rs 8,744 crore.
The company’s executive chairman Dheeraj Hinduja believes that the commercial vehicle (CV) industry in on the mend, in tandem with the macroeconomic environment. “We have seen recovery in the fourth quarter and the overall performance has been very good. The commercial vehicle industry is on a recovery owing to the improvement in the macroeconomic environment and healthy demand from the end-user industries,” said Hinduja.
Hinduja attributes the recovery to MHCV (medium and heavy commercial vehicle) segment, which he thinks is turning the tide in favour of the company.
“The MHCV segment is leading the recovery, riding on the back of growth in core sectors such as construction and mining, agriculture, increased capital outlay for infrastructure projects and pent-up replacement demand,” he added.
Ashok Layland Share: Here’s What the Brokerages Are Saying
Jefferies maintains a ‘buy’ rating on the stock, raising the target price to Rs 160 from Rs 130 as it expects an upcycle ahead.
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Source: News18