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Updated: 05/11/2009 | 12:00 AM IST
Ashok Leyland accelerates to 52-week high on surge in sales
Capital Market
Thursday, November 05, 2009 (New Delhi)
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Meanwhile, the BSE Sensex was up 150.85 points, or 0.95%, to 16,062.98.

On BSE, 19.57 lakh shares were traded in the counter as against an average daily volume of 10.18 lakh shares in the past one quarter.

The stock hit a high of Rs 49.90 so far during the day, which is 52-week high for the counter. The stock hit a low of Rs 46.50 so far during the day. The stock had hit a 52-week low of Rs 12.45 on 12 December 2008.

The stock has risen 17.04% in six trading sessions from a recent low of Rs 42.25 on 27 October 2009.

The mid-cap stock had outperformed the market over the past one month till 4 November 2009, rising 13.28% as compared to the Sensex's 7.13% fall. It had outperformed the market in the past one quarter, gaining 29.90% as compared to the Sensex's return of 0.51%.

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

The current price of Rs 49.45 discounts the company's Q2 September 2009 annualized EPS of Rs 2.66, by a PE multiple of 18.59.

Ashok Leyland's commercial vehicle sales jumped 56.99% to 5,333 units in October 2009 over October 2008. During the same period, the company's domestic sales spurted 66% at 4,934 units, but exports fell 5.22% to 399 units.

Ashok Leyland's net profit rose 31.8% to Rs 88.61 crore on a 15.7% decline in sales to Rs 1577.68 crore in Q2 September 2009 over Q2 September 2008.

Ashok Leyland's total sales fell 38.29% to 21,990 units during the period April-September 2009 over April-September 2008. During the same period, the company's domestic sales slumped 40.01% to 19,392 units and exports dropped 21.42% to 2,598 units.

As per recent reports, Ashok Leyland is in talks with Group Plaza of Argentina to set up a joint venture for producing buses and trucks in Argentina. Group Plaza is a large public transportation company with a strong presence in Argentina. It has four companies operating long distance buses and 20 intra-city bus services. It also operates train services.

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.

Promoters have pledged more than 7.24 crore shares representing 5.45% of the equity capital of the company. Total promoters shareholding in the company is 38.61% (as on 30 September 2009).

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