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Updated: 03/07/2009 | 12:00 AM IST
Ashok Leyland accelerates on new order win
Capital Market
Friday, July 03, 2009 (New Delhi)
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Meanwhile, the BSE Sensex was up 129.06 points, or 0.88%, 14,787.55.

On BSE, 6.83 lakh shares were traded in the counter. The stock had an average daily volume of 10.56 lakh shares in the past one quarter.

The stock hit a high of Rs 31.65 and a low of Rs 29 so far during the day. The stock hit a 52-week high of Rs 38.20 on 5 June 2009 and a 52-week low of Rs 12.45 on 12 December 2008.

The mid-cap stock had underperformed the market over the past one month till 2 July 2009, falling 17.65% as compared to the Sensex's 1.45% fall. It had outperformed the market in the past one quarter, surging 59.68% as compared to the Sensex's return of 41.64%.

The company's current equity is Rs 133.03 crore. Face value per share is Rs 1.

The current price of Rs 31.65 discounts the company's Q4 March 2009 annualized EPS of Rs 1.60, by a PE multiple of 19.78.

The company has bagged an order worth Rs 300 crore from Tamil Nadu State Transport Corporation for supply of 1,500 buses. Of the 1,500 buses, 900 will be for Chennai and 300 each for Madurai and Coimbatore.

The Corporation is buying the buses with funding from the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme.

Ashok Leyland has so far clinched orders for more than 5,000 buses from various State Transport Undertakings including the current order under JNNURM scheme. In most of the cases the prototypes have been approved and production commenced.

Irizar-TVS which is a three-way joint venture company (JVC) of Ashok Leyland, TV Sundram Iyengar & Sons and Irizar of Spain, will build most of the buses. All the buses will be fitted with passenger information system and will be delivered in five to six months.

Ashok Leyland (ALL)'s total sales declined 64.54% to 1,977 units in May 2009 over May 2008. The company's domestic sales dropped 67.12% to Rs 1,697 units and exports slipped 32.53% to 280 units in May 2009 over May 2008.

ALL had on 22 January 2009 received an order worth Rs 480 crore to supply buses from Delhi Transport Corporation.

ALL's net profit declined 70.5% to Rs 53.31 crore on 52.5% fall in net sales to Rs 1218.12 crore in Q4 March 2009 over Q4 March 2008.

Ashok Leyland manufactures commercial vehicles and spare parts. The company also manufactures special vehicles and engines for industrial, genset, marine requirements and automobile spare parts. The company operates only in India.

Ashok Leyland had on 17 February 2009 announced that the only promoter, Hinduja Automotive, has pledged more than 23.70 crore shares representing 17.82% of the equity capital of the company. Hinduja Automotive held 38.61% stake in the company as on 31 March 2009.

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